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ADANI WILMAR LTD

IPO Details

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65 shares
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₹ 218 - 230
₹ Upto 3600 cr
RHP

Timeline

  • 03-Feb-2022
  • 04-Feb-2022
  • 07-Feb-2022
  • 08-Feb-2022

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

About Company

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. The company offers a range of staples such as wheat flour, rice, pulses and sugar. Their products are offered under a diverse range of brands across a broad price spectrum and cater to different customer groups.

Strengths & Risks

Strengths (3)

Comprehensive B2C packaged consumer products portfolio catering to most daily essentials of an Indian kitchen

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.

Risks (3)

Unfavourable local and global weather patterns may have an adverse effect on their business, results of operations and financial condition.

As an edible oil and food and FMCG company, Adani Wilmar businesses are sensitive to weather conditions, including extremes such as drought, floods and natural disasters.

  • Comprehensive B2C packaged consumer products portfolio catering to most daily essentials of an Indian kitchen

    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.

  • Broad customer reach

    As of March 31, 2021, Adani Wilmar were present in one out of three households in India with a household reach of 90.51 million through their Fortune brand. (Source: Company DRHP)

  • Strong brand recall across a diverse range of price points

    “Fortune”, a Adani Wilmar flagship brand, is the largest selling edible oil brand in India. As a renowned brand in India, it has been associated with the quality of their edible oil and food products and the health benefits they feature. (Source: Company DRHP)

  • Unfavourable local and global weather patterns may have an adverse effect on their business, results of operations and financial condition.

    As an edible oil and food and FMCG company, Adani Wilmar businesses are sensitive to weather conditions, including extremes such as drought, floods and natural disasters.

  • Products are in the nature of commodities and their prices are subject to fluctuations that may affect their profitability.

    Earnings are to an extent dependent on the prices of the commodities that they sell, including, amongst others, palm oil, sunflower oil, grain and castor oil. These fluctuate due to factors beyond their control, such as world demand and supply.

  • Fluctuation in the exchange rate between the Indian rupee and foreign currencies may have an adverse effect on their business.

    Although Adani Wilmar follows established risk management policies, including the use of derivatives to hedge their exposure to foreign currency risks, they are nevertheless exposed to risks from foreign exchange rate fluctuations since their business is dependent on imports and exports.

Financials

Net Worth
Total Income
Total assets
Revenue from Operation
Net cash inflows/(outflows)
Total borrowings
Basic Earning per share
Profit after Tax

Industry Overview

Indian consumption story of edible oils and food staples remains robust

The Indian consumption growth story remains intact supported by various trends including the demographics, greater influence of women on their families, urbanization and a growing middle class.

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.

Shift of consumer preference to branded products resulting in immense potential market

A number of packaged food categories such as salt and edible oil have witnessed significant increase in the overall branded product usage. Similar trends are expected in various other large packaged food categories such as wheat flour, rice, besan and soya chunks in the coming years.

Adani Wilmar Ltd

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65 shares

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

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*The financials mentioned above are sourced from DRHP/ RHP documents.

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