What Is Adani Wilmar? How It'S Business Works?

 

Disclaimer 

Ventura Securities highlighted the key strengths of Adani Wilmar Ltd as a leading position in its markets for industrial inputs, its robust commodity procurement capabilities, and an integrated business model with well-established operational infrastructure and robust production capabilities. Adani Wilmar's product portfolio comprises three categories -- Edible Oils, FMCGs, packaged foods, and finally, industrial essentials. Adani Wilmar Ltd, which was established in 1999 as a joint venture of Adani Group and Singapore-based Wilmar Group, is an FMCG company that offers cooking products to Indian consumers including edible oils, wheat flour, rice, pulses, and sugar.

Adani Wilmar Limited (AWL) is a joint venture incorporated in January 1999 between Adani Group--a leader in private infrastructure--and Wilmar International Limited--Singapore, a leading Asian Agribusiness group. Adani Total Gas is a joint venture between Adani Group and French oil and gas firm TotalEnergies. Adani Enterprises is a holding company that is involved in mining and coal and iron ore trade on an independent basis, mainly, and serves as the incubator of Adani Group's new business ventures. Adani Group has built up a portfolio of ports, power plants, mines, ships, and rail lines both within India and beyond.

Adani Group has also expanded beyond the group's core businesses, including ports, special economic zones, real estate, and IT services. The Adani Groups' diverse businesses include port administration, power generation, and transmission, renewable energy, mining, airport operations, natural gas, food processing, and infrastructure. Adani Group is a multi-national operating in diverse business segments like logistics and transportation, as well as in the power and utility sectors, whereas the Wilmar Group is the largest Asian agricultural business conglomerate, headquartered in Singapore. Adani Wilmar has recently been looking at value-added products to diversify revenue streams and has launched functional food products like rice bran health oil, ready-to-cook soybean blocks, enriched foods, khichdi, and FMCG.

Starting with Adani Wilmar's (AWL) entry in the soya chunks, pulses, and besan segment in 2014, the edible oil business has since expanded to key categories like brand-name rice, wheat flour, and sugar. An analysis by Ventura Securities says while washes are expected to grow by 12.2%, as against 14.3% for edible oils, food and FMCG segments are going to be the key drivers of growth for Adani Wilmar's (AWL), at least until fiscal 24. Singapore-headquartered Wilmar International controls almost 30 percent of the global edible oils business, its tentacles extending across continents -- giving it unique leverage in terms of negotiating prices and allocating inputs. Singapore-headquartered Wilmar International controls nearly 30 percent of the world's edible oil business, with its tentacles spread across continents -- giving it unique leverage when it comes to price negotiations and allocation of raw materials. As we go ahead, after Rs1,900 crore in capital expenditure, that is going into food, two, three, and four years of operations, as soon as Rs1 is delivered, we are pretty confident of a fairly healthy proportion of the total in the overall mix. One has to realize, that we are positioned within the basic staples basket, as far as rural growth and consumption are concerned.