Adani Wilmar Q2: 10% Volume Growth, Food & FMCG Up 31%

Mumbai, Oct 4 (PTI) Adani Wilmar on Friday said it has registered 10 per cent total volume growth during the second quarter of this financial year, while its Food and FMCG segment saw 31 per cent volume growth.

The company has been expanding its distribution network to access more towns, reaching over 36,000 rural towns directly by the end of September 2024. The company has a goal to reach over 50,000 rural towns by the end of FY25.

"The company delivered another strong quarter with double-digit revenue growth of 16 per cent year-on-year, driven by strong execution in both edible oils and food business.

"We are seeing growth in the food business across various categories and regions throughout the country. Our broader portfolio of oils and food products, combined with increased throughput, is now providing us with a scale advantage in distribution," the company said in a Quarterly Update on Business on BSE.

Further, the company said it is focused on boosting sales productivity, implementing a tailored go-to market strategy for premium outlets and enhancing the use of technology in its sales operations.

In the second quarter, the revenue from alternate channels increased at a strong double-digit rate year-on-year, with sales over the past 12 months exceeding Rs 3,000 crore.

The e-commerce channel has seen even more rapid growth, with its revenue increasing by around four times in the last four years.

"Our mass brand, Kings, has also experienced significant growth from a smaller base in these channels, enabling us to effectively implement a two-brand strategy in alternate channels," it added.

The edible oil business maintained its strong momentum with double-digit YoY volume growth driven by strong performance in Soyabean, Sunflower and Mustard oils.

The strategy of enhancing penetration in under-indexed markets continued, along with expanding the distribution of Sunflower and Mustard oil into regions outside their core areas.

The Food and FMCG segment recorded a year-on-year revenue growth of 36 per cent, fueled by increased outlet penetration, and repeat purchases of our food products.

In the Wheat business, the company continues to grow strongly, especially in South India, where the household penetration of branded wheat flour is high.

"Moving forward, we aim to improve our distribution in smaller towns as well. The sales also benefited from the introduction of small pack sizes in markets with lower per capita consumption," he added.