In the December quarter, AWL’s FMCG business achieved 24% year-on-year growth in sales volume, underpinning its efforts to expand its offering of both food and FMCG products. As a result, the share of food and FMCG in total volume increased to 20%, and their share in total revenue rose to 9% from 10% and 5% respectively in FY21.
This change reflects the strategy pursued by ITC.
“In the food category, key packaging products such as flour, rice, nuggets, pulses, poha and sugar witnessed strong double-digit growth,” the company said in a recent stock exchange filing.
“Our integrated distribution model leverages the strengths of our oil distribution network to help expand the reach of our food products, especially in urban markets. E-commerce (including quick commerce) sales It also grew rapidly by 41% compared to the previous year.” ” AWL has developed an extensive distribution network through its edible oil business (mainly under the ‘Fortune’ brand) spanning 2.1 million outlets. Although the share of the edible oil segment has been steadily declining, it still accounts for about 80% of the company’s revenue, of which 10% comes from B2B sales. Rising oil prices (up 25% in the three months to December) led to a 39% year-on-year rise in the sector’s revenue. Meanwhile, food and FMCG revenue rose 22% in the quarter.
As a result of strong performance in each segment, AWL’s total revenue for the quarter increased 33%, against analyst expectations of 10% to 15%.
On Dec. 30, billionaire Gautam Adani’s group announced its exit from Adani Wilmar, selling its entire stake to a Singaporean partner for $2 billion on the open market in its first major deal since the U.S. bribery indictment. Sold for more than that.
Adani Enterprises, which held a 43.94% stake in Adani Wilmar, a manufacturer of Fortune brand edible oils, flour and other food products, has sold 31.06% of its stake to Wilmar International.
The remaining approximately 13% stake will be sold in the open market to meet minimum public shareholding requirements.
Adani will sell up to 40.37 billion shares (31.06% stake) to Wilmar at up to Rs 305 each for a net proceeds of Rs 12,314 crore. Adding in the sale of shares through OFS (price determined on the day of sale), the total proceeds will be over USD 2 billion (approximately Rs. 17,100 crore).
Following this agreement, Wilmar International is expected to introduce its global brands to the Indian market.
On Friday, AWL stock closed at Rs 328.8, down 0.56% from the previous day’s closing price.
Founded in 1999, Adani Wilmar manufactures Fortune brand edible oils, flours, pulses, rice and sugar. The company has 23 factories in 10 states.
In India, Wilmar Sugar and Energy Pte Ltd, part of the Wilmar Group, holds a 62.48% stake in listed company Shree Renuka Sugars Ltd, one of the country’s leading sugar producers.
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