Post-Adani exit, Wilmar to take a leaf out of ITC book

Wilmar to use its core edible oil business as a foundation for FMCG growth, to introduce more global FMCG brands into Indian market

New Delhi: 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.

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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.

On December 30, billionaire Gautam Adani’s group announced its exit from Adani Wilmar, selling its entire stake to the Singaporean partner and in the open market for over $2 billion in a first major deal since the US bribery indictment.

Adani Enterprises Ltd — which held 43.94 per cent stake in Fortune brand cooking oil, wheat flour and other food product maker Adani Wilmar Ltd — sold 31.06 per cent stake to Wilmar International.

The remaining about 13 per cent holding will be sold in the open market to meet minimum public shareholding requirements.

Established in 1999, Adani Wilmar makes Fortune brand cooking oil, wheat flour, pulses, rice and sugar. It owns 23 plants across 10 States.

In India, Wilmar Sugar and Energy Pte Ltd, part of Wilmar Group, has a 62.48 per cent stake in the listed entity Shree Renuka Sugars Ltd, one of the leading producers of sugar in the country.