Adani Wilmar is one of the few large FMCG food companies in India to offer most of the essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, pulses and sugar. (Source: Technopak Report) Essential commodities, such as edible oils, wheat flour, rice, pulses and sugar, account for approximately 66% of the spend on essential kitchen commodities in India. Company’s portfolio of products spans across three categories: (i) edible oil, (ii) packaged food and FMCG, and (iii) industry essentials. A significant majority of sales pertain to branded products accounting for approximately 73% of company’s edible oil and food and FMCG sales volume for the financial year 2021 (excluding industry essentials which were offered on a non-branded basis).

The company operates 22 plants located across 10 states in India, comprising 10 crushing units and 19 refineries. The company’s refinery in Mundra is one of the largest single-location refineries in India with a capacity of 5,000 MT per day. In addition to the 22 plants Adani Wilmar, also used 36 leased tolling units as of Sep 31, 2021, for additional manufacturing capacities.

The company’s distributors are in 28 states and 8 union territories throughout India, catering to over 1.6 million retail outlets. As of September 30, 2021, the company had 88 depots in India, with an aggregate storage space of approx. 1.8 million square feet across the country. Adani Enterprises Limited, Adani Commodities LLP and Lence Pte. Ltd are the company promoters.

For year/ period ended ( in Cr.)

• Differentiated and diversified product portfolio with market leading brands to capture large share of kitchen spends across India.
• It has strong brand recall and broad customer reach.
• Leading consumer Product Company in India with leadership in branded edible oil and packaged food business.
• It is one of the largest basic oleochemical manufacturers of India.
• Strong raw material sourcing capabilities from top global suppliers.
• An integrated business model with well-established operational infrastructure and strong manufacturing capabilities.
• Pan-India distribution network supported by a robust distribution infrastructure.
• Focus on environmental and social sustainability.

• Funding capital expenditure for expansion of existing manufacturing facilities and developing new manufacturing facilities (“Capital Expenditure”);
• Repayment/prepayment of borrowings;
• Funding strategic acquisitions and investments; and
• General corporate purposes.

At the upper band of Rs. 230 the IPO is valued at 36.2 times which is fairly priced in within peers. We believe Adani Wilmar provides an opportunity to invest in a cash-cum-digital play from a long-term perspective.