Adani Wilmar is the FMCG food segment company in India that offers essential kitchen commodities wheat flour, rice, pulses, sugar, and edible oil.
The products are offered under a wide variety of brands in a wide price spectrum and cater to different customer groups. Edible oils contribute 65% of the sales volume and FMCG contributes 10% and industry essentials contribute 25%.
The Joint venture between Adani Group and Wilmar Group founded the company in 1999.
Adani Group is a multinational diversified business in the transportation and logistics, and energy and utility sectors, and the Wilmer Group; is Asia’s leading agribusiness group that was ranked among the largest listed companies by market capitalization on the Singapore Exchange.
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Adani Wilmar Products
Edible Oil
The Adani Wilmar company has a broad portfolio of edible oil products including Soybean Oil, Palm Oil, Sunflower Oil, Rice Bran Oil, Mustard Oil, Groundnut Oil, Cottonseed Oil, Blended Oils, vegetables, Special Fats, and a range of Functional Edible Oil Products provides. Fortune, the flagship brand of the company, is the largest selling edible oil brand in India
ROCP (refined oil in consumer pack) branded edible oil had a market share of 18.30%. The products also include various specialty fats, including
- industrial margarine, bakery shortening, and vegetable
- auric fat as a substitute for milk fat and cocoa butter
- bulk packaging of frying oil.
Food and FMCG
The product portfolio of the issuer includes a wide range of packaged food items, including packaged wheat flour, rice, pulses, gram flour, sugar, soya chunks, and ready-to-cook khichdi.
The company is one of the fastest-growing packaged food companies in India based on the growth in revenue during the last five years.
The market share of packaged wheat flour and basmati rice under the Fortune brand was around 3.4% and 6.6% by volume.
The company also provides FMCG including soap, hand wash, and sanitizer.
Industry Essentials
Adani Wilmar industry’s essential commodities include oleochemicals, castor oil and its derivatives, and de-oiled cakes.
The company is one of the largest basic oleochemical manufacturers in India in terms of revenue, and the largest manufacturer of stearic acid and glycerine in India, with a market share of 32% and 23%, respectively.
A significant majority of sales are related to branded products, with around 73% being contributed by edible oils and edible and FMCG sales volume for FY 2011 (excluding industry exigencies that were introduced on a non-branded basis.
The company has 22 plants strategically located in 10 states of India, including 10 crushing units and 18 refineries.
Ten of the 18 refineries are port-based to facilitate the use of imported crude edible oil and reduce transportation costs, while the rest are usually located in hinterlands near raw material production bases to reduce storage costs.
The refinery at Mundra is one of the largest single-location refineries in India with a design capacity of 5,000 metric tonnes per day. In addition, as of March 31, 2021, the company also utilized 28 leased tolling units providing additional manufacturing capacity. Thus the issuer intends to continue the asset-light business model.
Company Essentials for Adani Wilmar
Peer Comparison
| COMPANY | PRICERs. | MCAPCr. | P/B | P/E | EPSRs. | ROE% | ROCE% | P/S | EV/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
| Guj. Ambuja Exports | 331.45 | 7,601.32 | 3.85 | 17.25 | 19.21 | 22.60 | 27.84 | 1.62 | 10.96 |
| Gokul Agro Resources | 124.45 | 1,780.54 | 4.38 | 17.29 | 7.20 | 14.36 | 23.65 | 0.23 | 8.33 |
| Manorama Industries | 1,226.65 | 1,462.14 | 5.59 | 79.78 | 15.38 | 13.43 | 15.83 | 7.01 | 33.27 |
| BCL Industries | 473.65 | 1,143.86 | 3.29 | 14.89 | 31.80 | 17.83 | 17.20 | 0.80 | 10.53 |
| Vijay Solvex | 2,361.40 | 755.95 | 3.07 | 12.39 | 190.52 | 35.85 | 29.42 | 0.37 | 9.03 |
| Vegetable Products | 55.70 | 608.24 | 94.26 | 0 | -0.03 | -2.36 | -0.70 | 0 | -2,978.95 |
Shareholding Pattern
| Promoters + | 87.94 % |
| FIIs + | 2.01 % |
| DIIs + | 0.41 % |
| Public + | 9.64 % |
Profit & Loss of Adani Wilmar
(All Figures in Cr. Adjusted EPS in Rs.)
| PARTICULARS | MAR 2017 | MAR 2018 | MAR 2019 | MAR 2020 | MAR 2021 |
|---|---|---|---|---|---|
| Net Sales | 22,972.73 | 26,346.66 | 28,802.21 | 29,657.04 | 37,090.42 |
| Total Expenditure | 22,322.22 | 25,434.73 | 27,699.87 | 28,345.34 | 35,762.95 |
| Operating Profit | 650.51 | 911.93 | 1,102.34 | 1,311.70 | 1,327.48 |
| Other Income | 132.71 | 97.96 | 119.70 | 107.89 | 104.01 |
| Interest | 327.65 | 298.26 | 469.97 | 569.07 | 406.51 |
| Depreciation | 118.83 | 145.71 | 181.88 | 241.87 | 267.53 |
| Exceptional Items | 11 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 347.74 | 565.92 | 570.19 | 608.65 | 757.45 |
| Tax | 118.09 | 191.13 | 205.02 | 214.05 | 102.89 |
| Net Profit | 229.65 | 374.79 | 365.17 | 394.60 | 654.56 |
| Adjusted EPS (Rs.) | 2.01 | 0 | 0 | 3.45 | 0 |
Balance Sheet
(All Figures are in Crores.)
| PARTICULARS | MAR 2017 | MAR 2018 | MAR 2019 | MAR 2020 | MAR 2021 |
|---|---|---|---|---|---|
| Equity and Liabilities | |||||
| Share Capital | 114.30 | 114.30 | 114.30 | 114.30 | 114.30 |
| Total Reserves | 1,165.85 | 1,540.37 | 1,904.63 | 2,298.06 | 2,952.43 |
| Borrowings | 463.13 | 189.52 | 964.69 | 1,146.39 | 1,024.09 |
| Other N/C liabilities | 288.53 | 380.35 | 533.30 | 745.56 | 682.07 |
| Current liabilities | 5,334.81 | 7,424.29 | 7,872.95 | 7,322.60 | 8,302.58 |
| Total Liabilities | 7,366.61 | 9,648.81 | 11,389.87 | 11,626.90 | 13,075.47 |
| Assets | |||||
| Net Block | 1,950.13 | 2,272.71 | 2,953.63 | 3,759.27 | 3,702.50 |
| Capital WIP | 70.42 | 443.09 | 570.39 | 324.89 | 530.53 |
| Intangible WIP | 0 | 0 | 0 | 0 | 0 |
| Investments | 52.34 | 53.34 | 53.85 | 55 | 56.17 |
| Loans & Advances | 71.25 | 146.11 | 210.77 | 139.10 | 116.18 |
| Other N/C Assets | 55.99 | 28.13 | 15.21 | 25.85 | 15.07 |
| Current Assets | 5,166.49 | 6,705.44 | 7,586.04 | 7,322.79 | 8,655.02 |
| Total Assets | 7,366.61 | 9,648.81 | 11,389.87 | 11,626.90 | 13,075.47 |
Cash Flows
(All Figures are in Crores.)
| PARTICULARS | MAR 2017 | MAR 2018 | MAR 2019 | MAR 2020 | MAR 2021 |
|---|---|---|---|---|---|
| Profit from operations | 347.74 | 565.92 | 570.19 | 608.65 | 757.45 |
| Adjustment | 165.57 | 397.98 | 393.58 | 790.19 | 356.98 |
| Changes in Assets & Liabilities | -527.99 | 720.57 | 849.89 | -484.78 | 120.94 |
| Tax Paid | -49.28 | -83.55 | -133.25 | -120.64 | -294.47 |
| Operating Cash Flow | -63.96 | 1,600.91 | 1,679.76 | 793.43 | 940.91 |
| Investing Cash Flow | -396.15 | -916.18 | -935.46 | -518.23 | -499.10 |
| Financing Cash Flow | 459.43 | -645.34 | -742.13 | -7.37 | -730.66 |
| Net Cash Flow | -0.67 | 39.40 | 2.17 | 267.83 | -288.85 |