Adani Wilmar to Venture into Edible Oil Business

Adani Wilmar Ltd plans to invest approximately Rs 600 crore this fiscal year to expand its processing capacities in the edible oil business and launch new food products for both consumers and institutional buyers, according to Managing Director and CEO Angshu Malick. This investment is part of a broader strategy to achieve higher growth in volume terms, and it is in addition to the ongoing expansion programs worth around Rs 3,400 crore aimed at increasing capacities across various business segments.

Adani Wilmar, a joint venture between Adani Group and Singapore's Wilmar, needs to reduce its promoters' stake to 75% by February next year from the current 88% to comply with SEBI's minimum public shareholding requirement of 25%. The company's current market capitalization stands at Rs 45,794 crore.

Headquartered in Ahmedabad, Adani Wilmar operates in the edible oil, food & FMCG, and industry essentials sectors, with most products sold under the 'Fortune' brand. The company reported a consolidated net profit of Rs 313.20 crore for the first quarter of this fiscal year, compared to a net loss of Rs 78.92 crore in the same period last year. Total income increased to Rs 14,229.87 crore from Rs 12,994.18 crore in the corresponding period of the previous year.

In an interview with PTI, Malick highlighted the company's performance in the first quarter of 2024-25, noting a 12% growth in volume and a 10% growth in value. In the edible oil segment, the company achieved a volume of one million tonnes, representing a 12% increase. The food and FMCG business experienced around 40% growth in both volume and value terms, with a 19% volume growth when excluding rice exports on a government-to-government basis.

These strategic investments and expansions are designed to bolster Adani Wilmar's market position and drive significant growth across its business verticals.