Adani Wilmar to invest Rs 600 crore in expanding edible oil, solar capacities

Adani Wilmar investments: Adani Wilmar Ltd has announced plans to invest approximately Rs 600 crore this fiscal year, focusing on expanding its edible oil processing capacities and improving its solar power capabilities. This investment is part of the company's broader expansion strategy, which includes ongoing programmes totalling around Rs 3,400 crore aimed at increasing capacities across various business sectors.

Adani Wilmar, a joint venture between the Adani Group and Singapore’s Wilmar International, is also preparing to reduce its promoter stake to 75 per cent by February next year, in compliance with SEBI’s minimum public shareholding requirement of 25 per cent. Currently, the promoters hold an 88 per cent stake in the company, which has a market capitalisation of Rs 45,794 crore.

The company, based in Ahmedabad, operates in the edible oil, food FMCG, and industry essentials sectors, primarily selling products under the ‘Fortune’ brand. 

For the first quarter of the 2024-25 fiscal year, Adani Wilmar reported a consolidated net profit of Rs 313.20 crore, a significant turnaround from the net loss of Rs 78.92 crore reported in the same period last year. Total income increased to Rs 14,229.87 crore from Rs 12,994.18 crore year-on-year.

Managing Director and CEO Angshu Malick highlighted the company's strong performance during the quarter, noting a 12 per cent growth in volume and 10 per cent growth in value. The edible oil segment saw a 12 per cent increase in volume, reaching one million tonnes. The food and FMCG sector experienced a 40 per cent growth in both volume and value, with a 19 per cent volume increase when excluding government-to-government rice exports. The industry essentials segment remained stable.

Malick attributed the stable prices of edible oils during the June quarter as a positive factor amid high inflation. He also pointed out strong B2B sales for edible oils and anticipated that a favourable monsoon would contribute to higher growth, boosting rural income and overall sales in the latter half of the fiscal year, particularly due to the upcoming marriage season.

The company plans to complete its current capital expenditure projects worth Rs 2,200 crore by the end of this fiscal year and finish the Rs 1,200 crore capex programme from the previous fiscal by March 2026. Additionally, a new capex programme of Rs 500-600 crore is set to commence, aimed at expanding oilseed processing capacities and increasing solar power generation from 8 MW to 15 MW. Some funds will also be allocated for the maintenance of existing plants.

Adani Wilmar will also introduce new speciality products for institutional buyers and consumer items such as noodles and pasta. During the April-June quarter, revenue from the edible oil segment rose 8 per cent to Rs 10,649 crore, while revenue from the food and FMCG sector surged 40 per cent to Rs 1,533 crore. The industry essentials segment saw flat revenue at Rs 1,986 crore.

The company's share price closed at Rs 352.35 on the BSE, marking a 2.31 per cent increase from the previous day’s closing price.

(With PTI inputs)