Adani Wilmar’s Annual General Meeting (AGM) underscored the company’s robust market presence, exceptional financial performance, and unwavering commitment to sustainability, solidifying its position as a leader in the Indian FMCG sector.
Market Position and Reach
Adani Wilmar continues to secure its position among the top 10 Food FMCG companies in India, with its flagship brand, Fortune, reaching approximately 11 crore households, equating to one-third of Indian households. This wide-reaching influence highlights the brand’s strong foothold in the market and its substantial consumer base.
Stellar financial performance
The company’s financial performance in FY24 was noteworthy, with a revenue of INR 51,262 crore and an overall volume growth of 10% year-over-year. Particularly impressive was the Food & FMCG segment, where the turnover nearly doubled over two years to INR 5,000 crore. Additionally, the H2 FY24 operating EBITDA surged to INR 861 crore, a significant improvement from INR 274 crore in H1 FY24, resulting in a normalized operating EBITDA of INR 1,135 crores for the year.
Segment growth and expansion
Adani Wilmar’s various business segments exhibited robust growth. The edible oils segment saw a 9% year-over-year volume growth, with branded oils sales increasing by 15%. The Foods & FMCG sector reported a 16% year-over-year volume growth and a remarkable 40% domestic volume growth. The industry essentials segment also performed well, with an 8% year-over-year volume growth and double-digit growth in oleochemicals.
The company made significant strides in expanding its distribution network, increasing its direct reach to 720,000 retail outlets from 580,000 and doubling its rural town coverage to 30,600 towns.
Revenue from alternate channels, including modern stores and e-commerce, reached INR 2,700 crores, while the HoReCa (Hotels, Restaurants, and Cafés) channel surpassed INR 400 crore in sales. Branded exports also experienced substantial growth, rising by 72% year-over-year, and now extend to over 30 countries.
Commitment to sustainability
Adani Wilmar’s dedication to sustainability was evident, with 25% of its volumes being transported via railways, significantly reducing the company’s carbon footprint. Also, 7.6% of the volume of packaged oils and foods were dispatched using CNG vehicles, and 11% of total energy consumption was derived from renewable sources.
The company also emphasized its environmental responsibility by ensuring that 98% of its packaging materials are recyclable. Furthermore, the Fortune SuPoshan project has made a positive impact on 20 lakh people since its inception, showcasing the company’s commitment to social welfare.
Future outlook
Looking ahead, Adani Wilmar aims to drive a shift from unpackaged to packaged staple foods, expand in under-indexed markets and categories, and leverage its existing infrastructure to introduce new product categories. The company plans to focus on regional preferences and gradually improve profitability through the introduction of premium variants and value-added products.
Adani Wilmar’s AGM highlighted the company’s strong market position, impressive financial growth, and proactive sustainability initiatives, positioning it for continued success and growth in the Indian FMCG sector.
