Adani Wilmar Limited, the country’s largest branded edible oil manufacturer, is on a major expansion of its existing capacity and on course to repeating its success with other branded food items — rice and dal in particular.
The 50:50 joint venture of the diversified Adani Group and Singapore-based Wilmar is scouting for rice mills in southern India to expand its business in the branded food items category.
“The joint venture company, which entered edible oil business in 1999-2000 has managed to grow its revenue to ₹18,000 crore and become the largest edible oil company in the country with a share of about 19.5 per cent within 15 years. We are looking at replicating this success in other branded food items such as rice and dal, which are bigger categories in the country,” said Angshu Mallick, Chief Operating Officer of Adani Wilmar.
Speaking on the sidelines of FICCI conference here today, Mallick said the venture now owns refineries in 17 strategic locations across India, has 8 crushing units and 18 toll packing units. The company now has 22 own units and runs 24 units owned by others and taken on lease.
“This perspective growth plan will be met by expansion of some of the existing units based on the locational advantage, particularly those close to the ports, expanding some of the facilities of contract units and by entering into new arrangements at new locations,” he told BusinessLine .
In the South, which accounts for about 33 per cent of the total branded market, Adani Wilmar is aiming at a bigger market share by teaming up with some of the local mills. “Therefore, we are scouting to partner with units, particularly those facing difficulty in managing them, to turn them around and scale up to offer branded items,” he said.
The company has several plants in southern India, including a unit in Mantralayam acquired from ITC, others at Krishnapatnam, Tuticorin, Kakinada and Mangalore. There is also a big research and development facility in Hyderabad.
The country’s edible oil market size is worth ₹1,00,000 crore and of this 55 per cent is accounted for in the branded market. Though the market grew by about 14 per cent, the overall size has remained the same as the commodity and oil prices were lower, he said.
Of the ₹18,000 crore business, about ₹3,000 crore comes from exports. By diversifying and adding other branded food items, the company sees big jump in its revenues over the next few years, Mallick said.