Adani Wilmar Beats HUL, Becomes India’s Biggest FMCG Company With 46.2% Annual Growth!

Adani Wilmar Beats HUL, Becomes India's Biggest FMCG Company With 46.2% Annual Growth!
Adani Wilmar Beats HUL, Becomes India’s Biggest FMCG Company With 46.2% Annual Growth!

On 2nd March, Packaged Food major, Adani Wilmar Ltd. (AWL)  reported Rs 54,214 crore revenue from operations for FY 2021-22.

Adani Wilmar Ltd. (AWL) Revenue Growth

It is 46.2 percent higher year-on-year (YoY) from Rs 37,090 crore revenue in the previous year.

 This way, the consumer goods company from billionaire Gautam Adani’s stable has dislodged Hindustan Unilever (HUL) from its top spot in the local fast moving consumer goods (FMCG) market

So far, the HUL has been holding the top spot, in terms of yearly revenue, for years which now reported Rs 51,468 crore sales for FY2021-22. 

Edible oils, from where AWL rakes in a large chunk of its revenue, contributed nearly 84 per cent towards its top-line and drove its sales for the year. 

Coming to sales, the sales of edible oils segment jumped 47.3 per cent YoY at Rs 45,401 crore from Rs 30,818 crore in FY2020-21.

On the other hand, Industry essentials business which forms nearly 11.4 percent of its sales, grew 42 percent to Rs 6,191.5 crore from Rs 4,366 crore. 

The firm’s business segment is primarily represented by AWL’s oils derivatives business, including oleo-chemicals and castor oils.

They are extensively used in the production of beauty, personal and skin care items.

Similarly, the firm’s recently ventured packaged foods business surged 38 percent to Rs 2,621.3 crore, which is up from Rs 1905.6 crore in the previous financial year.

Profitability Remained A Concern

Interestingly, profitability still remained a concern. 

Moreover, the segment posted Rs 22.5 crore loss at the gross level, as per its filings with the BSE.

The company gained share in the edible oil and packaged foods market. 

At end-2021, the company was enjoying 18.9 per cent share of the branded edible oil market and was ahead of the nearest competition by at least 10 percentage points, according to Angshu Mallick, Managing Director & Chief Executive Officer at AWL. 

Mallick said, “We have delivered steady growth in spite of the challenging macro environment. The food & FMCG segment registered double digit growth. We have continued to improve our market share across edible oil & food categories,”.

Considering its top-line, AWL’s profitability was primarily driven by its edible oil business. 

Being the largest edible oil importer, refiner and player in the branded edible oil market in India, it has got nearly Rs 1,289 crore from its edible oil business at the gross level. 

At the same time, the industry essentials business provided a higher gross margin at 6.6 percent compared to 2.84 percent for edible oil.

It is noteworthy here that AWL’s profit margins remained lower than the FMCG industry average. 

The company’s net profit margin slipped further by 48 basis points  at 1.4 percent which was 1.96 percent posted in FY2020-21. 

So, AWL’s net profit stood at Rs 803.7 crore  during FY 2021-22 against Rs 728.5 crore in the previous year.

Bright Future For The Firm

Mallick said, the company is well on its way to implement its “go-to-market strategy focused to capture the rural growth story”,.

Further adding, “We will continue to invest in our brand, distribution, sourcing and manufacturing capabilities. Going forward, we will focus more on inorganic growth and strategic investments in the foods space,”.

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