Adani Wilmar Has Overtaken Hul As India’s Largest FMCG Firm
Adani Wilmar Ltd. (AWL), a packaged foods company, today reported revenue from operations of Rs 54,214 crore for FY2021-22, up 46.2 percent year on year (YoY).
With this increase in revenue from Rs 37,090 crore the previous year, billionaire Gautam Adani’s consumer goods company has pushed Hindustan Unilever (HUL) out of the top spot in the local fast-moving consumer goods (FMCG) market.
HUL, which has been the market leader in terms of annual revenue for years, reported sales of Rs 51,468 crore for FY2021-22.
Edible oils, which account for a large portion of AWL’s revenue, contributed nearly 84 percent to the company’s top line and drove sales for the year. Sales of edible oils increased 47.3 percent year on year to Rs 45,401 crore, up from Rs 30,818 crore in FY2020-21.
Industry essentials grew 42 percent to Rs 6,191.5 crore from Rs 4,366 crore, accounting for nearly 11.4 percent of total sales. AWL’s oil derivatives business, such as oleo-chemicals and castor oils, which are widely used in the production of beauty, personal, and skincare items, dominate this business segment.
While revenue from its newly launched packaged foods business increased by 38% to Rs 2,621.3 crore from Rs 1905.6 crore the previous fiscal year, profitability remained an issue. According to its BSE filings, the segment lost Rs 22.5 crore on a gross basis.
According to AWL’s Managing Director and Chief Executive Officer, Angshu Mallick, the company increased its market share in edible oil and packaged foods. By the end of 2021, the company had an 18.9% share of the branded edible oil market, putting it at least 10% ahead of the nearest competitor.
“Despite the challenging macro environment, we have maintained steady growth. Food and FMCG are experiencing double-digit growth. We’ve maintained our market share gains in the edible oil and food categories “Mallick stated.
AWL’s profitability, like its top line, was primarily driven by its edible oil business. At the gross level, India’s largest edible oil importer, refiner, and player in the branded edible oil market made nearly Rs 1,289 crore from its edible oil business. In comparison to 2.84 percent for edible oil, the industry essentials business had a higher gross margin of 6.6 percent.
AWL’s profit margins, on the other hand, remained lower than the FMCG industry average. Its net profit margin fell another 48 basis points to 1.48 percent, down from 1.96 percent in FY2020-21. AWL’s net profit for the year was Rs 803.7 crore, up from Rs 728.5 crore the previous year.
According to Mallick, the company is well on its way to putting its strategy into action, “a go-to-market strategy aimed at capturing the story of rural growth.”
“We’ll keep investing in our distribution, sourcing, and manufacturing capabilities. In the future, we will place a greater emphasis on inorganic growth and strategic investments in the food industry, “Mallick continued.