Adani Wilmar's New FMCG Growth Strategy: Riding the ITC Model

Adani Wilmar Ltd is shifting its strategy to expand its FMCG portfolio, much like ITC, by utilizing its dominant edible oil business foundation. The company's recent 24% year-on-year growth in its FMCG sector highlights its successful expansion efforts, bolstered by a strong distribution network and growing e-commerce presence.

Adani Wilmar Ltd (AWL), the largest edible oil firm in India, is adopting a strategic pivot similar to ITC's approach, leveraging its core business to fuel the growth of its fast-moving consumer goods (FMCG) portfolio. This shift comes after the Adani group announced its exit plans, according to industry insiders.

Mirroring ITC's expansion from a robust cigarette business into the FMCG sector, AWL plans to base its growth strategy on its established edible oil operations. In a significant development, AWL's FMCG division reported a 24% volume increase year-on-year, with the food and FMCG segments now constituting 20% of overall volumes and 9% of total revenue.

This strategic realignment reflects AWL's determination to capture a greater market share and diversify its brand portfolio, utilizing an extensive distribution network that targets over 2.1 million outlets nationwide. The company anticipates further growth through e-commerce, which saw an impressive 41% rise in sales last year.

(With inputs from agencies.)