Post-Adani exit, Wilmar to emulate ITC; leverage cash-cow oil business to expand FMCG portfolio
Adani Wilmar Ltd (AWL), India's largest edible oil company, is adopting a strategy similar to ITC's by leveraging its core business and extensive distribution network to drive growth in its high-margin FMCG portfolio after the Adani group exit, according to sources. Just as ITC used its strong cigarette business to expand into FMCG, AWL is set to use its dominant edible oil business as a foundation for FMCG growth.
ET Year-end Special Reads
Stocks to buy in 2025: 66 ideas from top brokerages for your new year portfolio
What does 2025 hold for India's IT services sector?
2025 may be the year of EVs in India, dominated by SUV launches
Following the exit of the Adani Group, Wilmar may further capitalise on this approach by introducing more global FMCG brands into the Indian market, sources aware of the matter said.
In the December quarter, AWL's FMCG business achieved a 24 per cent year-on-year growth in volume, underscoring its efforts to expand both its food and FMCG product offerings. Consequently, the share of food and FMCG in overall volumes increased to 20 per cent, while its share in total revenues rose to 9 per cent, up from 10 per cent and 5 per cent, respectively, in FY21.
This shift mirrors the strategy pursued by ITC.
«In the foods category, key packaged products such as wheat flour, rice, nuggets, pulses, poha, and sugar have experienced robust double-digit growth,» the company had stated in a filing with stock exchanges recently.
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using
