Adani Wilmar Share Price

Adani Wilmar Limited

Adani Wilmar Limited, founded in 1999, is a prominent player in the Indian Fast-Moving Consumer Goods (FMCG) sector. It was established as a 50:50 joint venture between the Indian conglomerate Adani Group and Singapore-based Wilmar Group. Over the years, the company has grown to become one of the largest FMCG companies in India, with a strong presence in the edible oil market, among other food-related segments.

The Foundation and Early Growth

Adani Wilmar Limited embarked on its journey as a joint venture with the goal of becoming a key player in India's edible oil market. The company started by offering a variety of edible oils, including soyabean oil, sunflower oil, sesame oil, cottonseed oil, groundnut oil, mustard oil, and coconut oil. In addition to oils, the company also ventured into offering vegetable ghee and specialty fats, catering to both household consumers and institutional buyers. Over time, it developed an extensive distribution network, reaching customers through super stockists, distributors, brokers, and other trade associates.

One of the key milestones in the company's early growth phase was its expansion into international markets. Adani Wilmar exports its products to countries in the Middle East, Southeast Asia, Africa, Ukraine, and Ghana, cementing its presence as a global player in the edible oil industry.

Key Product Launches and Expansion

Entry into the Mustard Oil and Groundnut Oil Segment

In the year 2003-2004, Adani Wilmar made a strategic move by launching its Kachhi Ghani Mustard Oil and Filtered Groundnut Oil. These products allowed the company to tap into new consumer segments and further consolidate its presence in the edible oil market. Around the same time, Adani Wilmar began acquiring seed processing units with refining capabilities to boost its production capacity. This period also saw the implementation of additional manufacturing capabilities, including a 1000 metric ton refinery, a 200 metric ton Vanaspati plant, and a coal-based cogeneration power plant at Mundra with a capacity of 3.8 megawatts.

Expansion in Specialty Fats and Oilseed Processing

In 2004-2005, the company ventured into the specialty fats business, developing products with different grades to cater to diverse market needs. This move helped Adani Wilmar diversify its product offerings and strengthen its position in the FMCG sector. During the same period, the company acquired an integrated oilseed processing complex located at Mantralayam, Andhra Pradesh, and another oilseed processing unit in Rajasthan. A cogeneration power plant with a capacity of 3.8 megawatts was also implemented to enhance operational efficiency.

Increasing Production Capacity

Adani Wilmar continued to expand its production capabilities in the following years. By 2006-2007, the company had increased its installed capacity for edible oil from 963,500 metric tons to 1,051,200 metric tons. Additionally, its Vanaspati production capacity was expanded from 118,625 metric tons to 155,125 metric tons. During this period, Adani Wilmar also launched a new brand of coconut oil under the name "Naturelle", further diversifying its product portfolio.

Strategic Acquisitions and Capacity Enhancements

The year 2007-2008 marked another significant milestone for the company. Adani Wilmar acquired a small refinery in Kadi, located in the Mehsana district of Gujarat. This acquisition allowed the company to increase its edible oil production capacity from 1,051,200 metric tons to 1,052,340 metric tons. Additionally, the company expanded its chilling filtration plant at Mundra and installed a hydrogenation plant at Haldia, further enhancing its production capabilities.

Technological Advancements and New Product Launches

Expansion into Bakery and Shortening Products

In 2008-2009, Adani Wilmar successfully implemented several major projects. This included the completion of a bakery shortening plant and a chilling filtration system in Mundra, Gujarat. The company also established a hydrogenation plant in Haldia, West Bengal, which began commercial production that same year. These developments allowed the company to offer a wider range of products, specifically targeting the bakery and food service sectors.

Introduction of New Brands

That same year, Adani Wilmar launched new brands, such as Kings, Bullet, and Ivory, catering to different market segments. Additionally, the company introduced Raag Gold Refined Palmolien Oil, further expanding its portfolio of edible oils. The company's installed capacity for seed crushing also saw a significant increase, rising from 310,250 metric tons to 770,800 metric tons. The Vanaspati production capacity was also enhanced, reaching 164,125 metric tons.

Financial Milestones and IPO

Equity Allotment and Subdivision of Shares

Adani Wilmar reached an important financial milestone in January 2015 when the company allotted 4,936,180 equity shares at a price of Rs 10 each, with a premium of Rs 115 per share, on a rights basis. This move helped the company raise capital for its ongoing expansion efforts. In May 2021, the company passed a shareholder resolution to subdivide its equity shares from Rs 10 each to Re 1 each, making it more accessible to a broader base of investors.

Public Listing and IPO

In January 2022, Adani Wilmar came out with a public issue of Rs 3,600 crore, which was entirely a fresh issue of shares. The shares were allotted at Rs 230 per share, which included a premium of Rs 229 per share. The company's shares were subsequently listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on 8th February 2022. This IPO was a significant step in positioning the company as a major player in the Indian stock market.

Recent Developments and Innovations

Launch of New Products

During the financial year 2022-23, Adani Wilmar introduced several new products in the market. One of the key launches was its premium regional rice variants in West Bengal. The company also launched the Basmati rice brand "Kohinoor" to capture the non-Basmati market. Additionally, Adani Wilmar released two new television commercials (TVCs) for its Fortune Soyabean Oil and Fortune Sunlite Sunflower Oil brands.

Expanding Product Portfolio

In 2022, the company introduced Fortune Poha, a breakfast staple, and Fortune Xpert Total Balance, a new product featuring three blended oils. The Kohinoor Hyderabadi Biryani Kit was also launched in the ready-to-cook category, expanding the company's health convenience product portfolio. Alongside these innovations, Adani Wilmar introduced two new variants of Khichdi and Poha, targeting different regional tastes and preferences.

Expansion in Oleochemicals and Renewable Energy

In recent years, Adani Wilmar has ventured into the oleo derivatives sector, producing chemicals used in polymer additives, lubricants, agrochemicals, and food additives. The company has also made significant investments in renewable energy. A 1.3 MW solar power plant was commissioned at Hazira, and a 0.9 MW solar power plant was installed at Kadi. These initiatives align with the company's commitment to sustainability and reducing its carbon footprint.

Investments in Capacity and Technology

Technological Advancements

Adani Wilmar continues to invest heavily in technological advancements and capacity expansion. In 2022, the company made investments totaling Rs 673 crore to enhance its production capabilities. Notably, the company augmented the refining capacity of rice bran oil at Mantralayam from 70 TPD to 100 TPD and expanded the sunflower oil refining capacity at Kakinada from 300 TPD to 450 TPD.

Automation and Safety Upgrades

The company also implemented automation technologies in its refineries, installing robotic arms and carton erectors to automate filling and packaging processes. Additionally, Adani Wilmar upgraded its firefighting system at the Mundra Oleo Plant by installing a foam-based fire suppression system, enhancing safety measures across its facilities.

Outlook Overview

Adani Wilmar Limited has come a long way since its inception in 1999. From being a joint venture between two conglomerates to becoming one of the largest FMCG companies in India, the company has demonstrated a strong commitment to innovation, growth, and sustainability. With continuous investments in capacity expansion, technology, and new product development, Adani Wilmar is well-positioned to maintain its leadership in the FMCG sector and continue to serve both domestic and international markets effectively.