About the Company:
Adani Wilmar Ltd 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.
Company offers a range of staples such as wheat flour, rice, pulses and sugar and these products are offered under a diverse range of brands across a broad price spectrum and cater to different customer groups.
Adani group & Wilmar group Partnership.
Company is a joint venture incorporated in 1999 between the Adani Group, which is a multinational diversified business group with significant interests across transport and logistics, and energy and utility sectors.
Wilmar Group, one of Asia’s leading agribusiness groups which was ranked among the largest listed companies by market capitalization on the Singapore Exchange.
Company benefits from the Adani Group’s in-depth understanding of local markets, extensive experience in domestic trading and advanced logistics network in India, and leverage on the Wilmar Group’s global sourcing capabilities and technical know-how.
Company’s portfolio of products spans across three categories:
- Edible oil.
- Packaged food and FMCG.
- Industry essentials.
Company’s Industry Essentials Business.
Company also offers a diverse range of industry essentials, including oleochemicals, castor oil and its derivatives and de-oiled cakes.
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.
Company was the largest exporter of castor oil and one of the largest exporters of oleochemicals in India as of March 31, 2020.
Company’s Manufacturing facilities.
Company has 22 plants which are strategically located across 10 states in India, comprising 10 crushing units and 18 refineries.
Out of the 18 refineries, ten are port-based to facilitate use of imported crude edible oil and reduce transportation costs, while the remaining are typically located in the hinterland in proximity to raw material production bases to reduce storage costs.
Company’s refinery in Mundra is one of the largest single location refineries in India with a designed capacity of 5,000 MT per day. In addition to the 22 plants owned, company also used 28 leased tolling units as of March 31, 2021.
Company’s Distribution Network.
Adani Wilmar has the largest distribution network among all the branded edible oil companies in India. As of March 31, 2021, company was present in one out of three households in India with a household reach of 90.51 million through the Fortune brand.
As of March 31, 2021, company had 5,566 distributors. The distributors are located in 28 states and eight union territories throughout India, catering to over 1.6 million retail outlets. These retail outlets represent approximately 35 % of the retail outlets in India.
As of March 31, 2021, company also had 85 depots, with an aggregate storage space of approximately 1.6 million square feet across the country to ensure availability of the products.
How much is the Company’s Revenue from Branded products?
A significant majority of company’s 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).
How much is Adani Wilmar’s Market Share in Branded Edible Oil Business?
As of March 31, 2021, the Refined Oil in Consumer Packs (“ROCP”) market share of Adani Wilmar branded edible oil was of 18.3%, putting company as the dominant No. 1 edible oil brand in India. “Fortune” flagship brand, is the largest selling edible oil brand in India.
Company also offers a diverse range of industry essentials, including oleochemicals, castor oil and its derivatives and de-oiled cakes.
Apart from Edible oil, which are the other products sold by Adani Wilmar?
Company offers a wide array of packaged foods including packaged wheat flour, rice, pulses, besan, sugar, soya chunks and ready-to-cook khichdi and is one of the fastest growing packaged food companies in India, based on the growth in revenues during the last five years.
Which are the value added products recently added by the Company?
The value-added products we have launched in recent years include functional edible oil products, such as rice bran health oil, fortified foods, ready-to-cook soya chunks and khichdi, and FMCG.
In 2021, the market share of company’s packaged wheat flour and basmati rice under the Fortune brand was approximately 3.4% and 6.6% by volume, respectively, ranking second and third, respectively, in India.
Company’s Online presence.
Company also sells through various e-commerce platforms, including company’s own Fortune Online portal, and Fortune Mart stores which serve as fulfillment centers for home delivery of products ordered through Fortune Online.
Company aims to expand online reach from current 20 cities to 100 cities in the next few years and also aim to have more than 40 Fortune Mart stores opened across India in the next few years.
Adani Wilmar has entered Bangladesh Edible oil Market.
Company has recently acquired Bangladesh Edible Oil Ltd, an edible oil manufacturer with market leadership in some edible oil categories in Bangladesh, which will help Adani Wilmar Ltd to expand into the Bangladesh market and further increase the edible oil manufacturing capacity.
Company at a Glance.
Marketshare of Branded Edible Oil companies in India in FY 20.
Management Team:
- Mr. Angshu Mallick (Designation: Chief Executive Officer and Managing Director)
- Mr. Pranav Vinod Adani (Designation: Non-Executive, Non- Independent Director)
Objectives of the Issue:
Fresh Issue: (Rs. 3600 cr)
- Funding capital expenditure for expansion of existing manufacturing facilities and developing new manufacturing facilities (“Capital Expenditure”).
- Repayment/prepayment of company’s borrowings.
- Funding strategic acquisitions and investments.
- General corporate purposes.
Positives for the Company:
Strong parentage with professional management and experienced board.
- Company benefits from the Adani Group’s in-depth understanding of local markets, extensive experience in domestic trading and advanced logistics network and leverage on Wilmar Group’s global sourcing capabilities and technical know-how.
Strong raw material sourcing capabilities.
- Adani Wilmar has strong raw material sourcing capabilities are supported by company’s market standing and extensive business networks.
- Company was India’s largest importer of crude edible oil as of March 31, 2021, which provided company with bargaining power to source better quality raw materials on favorable commercial terms.
- Company also benefits from the support of the Wilmar Group for market intelligence and raw material sourcing, as well as long-standing relationships with international suppliers.
Significant rise in packaged food demand in India.
- The demand for packaged foods in India is experiencing a rapid growth. Certain food categories, such as wheat flour and rice, which used to be predominantly sold in loose form, are being increasingly sold in packages.
- However, the penetration rate of packaged foods in India remains low, which provides significant potential for growth for packaged edible oil and food products.
Company’s products portfolio caters to most daily essentials of an Indian kitchen.
- Company focuses on offering a wide portfolio of packaged consumer staples, including edible oil, wheat flour, rice, pulses, besan, soya chunks and sugar, to consumers.
- 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, wheatflour, rice, pulses and sugar.
Company has broad customer reach.
- As of March 31, 2021, Company is present in one out of three households in India with a household reach of 90.51 million through Fortune brand. Company is also trusted by prominent institutional customers, including Britannia.
Leading consumer product company in India with leadership in branded edible oil and packaged food business.
- As of March 31, 2021, the ROCP market share of company’s branded edible oil was 18.30%, putting Adani Wilmar as the dominant No. 1 edible oil brand in India.
- “Fortune” is the largest selling edible oil brand in India. Over the past two decades, company has established leadership across different product offerings in the edible oil market in India.
Extensive pan-India distribution network.
- As of March 31, 2021, company had 5,566 distributors. The distributors are located in 28 states and eight union territories throughout India catering to over 1.6 million retail outlets, representing approximately 35 % of the retail outlets in India.
Continue to launch new products and enhance the customer base.
- Company’s potential new products may include additional functional edible oils, cold pressed or infused oils, noodles and pasta, poha, biryani rice kit, masala oats and dalia, honey, instant dry mixes for idly, dosa, poha and khaman, Chinese, Mexican and Schezwan flavored rice, traditional savory snacks, biscuits, cookies, khari/rusks, low calorie sugar, vermicelli, cake mix, dishwash bars and floor cleaner.
- Company expects new products to increase the market share and further expand the customer base.
Financials of the Company:
| (in Crores) | FY 19 | FY 20 | FY 21 | 30th Sept 21 |
|---|---|---|---|---|
| Revenue | 28,919.6 | 29,766.9 | 37,195.6 | 24,957.2 |
| Net Profit | 375.5 | 460.8 | 727.6 | 357.1 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Adani Wilmar Ltd | 1 | 6.37 | 36.10 | 22.06% | 28.86 |
| Ruchi Soya Industries Ltd | 2 | 876.88 | TBA | 4950.6% | 126.80 |
| Hindustan Unilever Ltd | 1 | 34.03 | 68.57 | 16.8% | 202.99 |
| Britannia Industries Ltd | 1 | 77.43 | 44.23 | 51.6% | 148.80 |
| Tata Consumer Products Ltd | 1 | 9.30 | 81.32 | 6.0% | 169.57 |
| Dabur India Ltd | 1 | 9.58 | 62.90 | 22.0% | 43.57 |
| Nestle India Limited | 10 | 215.98 | 81.96 | 103.1% | 209.44 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 27th January 2022 |
| Issue Closes on:. | 31st January 2022 |
| Issue Price | Rs.218 – 230 |
| Face Value | Rs.1 |
| Retail Category Allocation | 35% |
| Minimum Lot | 65 Shares |
| Minimum Investment | Rs. 14,950 |
| Issue Constitutes | 13.69% |
| Issue Size | Rs. 3600 cr ($480 million) |
| Market Cap | Rs. 29,887 cr ($ 4 billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 15,65,21,740 (Rs. 3600 cr) |
| Equity Shares Prior to the Issue | 114,29,48,860 |
| Equity Shares after the issue | 129,94,70,600 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | On or Before 3rd February 2022 |
| Initiation of Refunds | On or Before 4th February 2022 |
| Credit of Equity Shares: | On or Before 7th February 2022 |
| Listing Date: | On or Before 8th February 2022 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) | Debt/Equity Ratio |
|---|---|---|---|---|
| 6.37 | 36.10 | 22.06% | 28.86 | 0.39 |
| Check IPO Allotment Status: |
|---|
Link InTime https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Adani Wilmar Limited Fortune House, Near Navrangpura Railway Crossing Ahmedabad 380 009 Gujarat, India. Tel: +91 79 2645 5848 E-mail: investor.relations@adaniwilmar.in Website: www.adaniwilmar.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C 101, 247 Park, L.B.S Marg Vikhroli (West) Mumbai 400 083 Maharashtra, India Tel: +91 22 4918 6200 E-mail: adaniwilmar.ipo@linkintime.co.in Website: www.linkintime.co.in |
