Adani Wilmar’s Q2 Boost: 10% Volume Growth as FMCG Soars 31% with Rural Expansion and E-commerce Surge

Adani Wilmar recorded a 10% growth in total volume during the second quarter of the current financial year, with its Food and FMCG segment showing an impressive 31% growth in volume.

Expanding Rural Reach

By the end of September 2024, the company expanded its direct distribution to over 36,000 rural towns. It aims to reach more than 50,000 rural towns by FY25.

The company posted a 16% year-on-year revenue increase, driven by solid performance in its edible oils and food businesses. This broad portfolio of products, along with improved distribution, is providing Adani Wilmar with greater scale and efficiency.

Focus on Sales Productivity and Technology

Adani Wilmar is focusing on improving sales efficiency with new strategies for premium outlets and increased use of technology in sales operations. The company saw strong double-digit growth in alternative sales channels, achieving over Rs 3,000 crore in revenue over the last 12 months.

The e-commerce channel has grown rapidly, with revenue multiplying four times in the last four years. Their mass brand, Kings, has also seen substantial growth in these channels, allowing the company to successfully implement a two-brand strategy.

Edible Oil Segment Growth

The edible oil business experienced double-digit year-on-year volume growth, led by strong demand for Soyabean, Sunflower, and Mustard oils. The company continued to expand into regions where these oils were previously unavailable.

The Food and FMCG division saw a 36% revenue increase year-on-year, with better penetration in outlets and repeat purchases of food products contributing to this growth.

Wheat Business Expands in South India

Adani Wilmar’s wheat business is particularly strong in South India, where branded wheat flour is widely used. The company plans to increase its distribution in smaller towns and introduced smaller pack sizes in regions with lower consumption to boost sales.