Adani Wilmar Q3 biz update | Total volume growth in 'high-teens', value growth in 'high-single digit'

Food and FMCG major Adani Wilmar on January 10 said it has recorded total volume growth in the "high-teens", and cumulative value growth in "high-single-digit" during the third quarter of the fiscal year 2022-23.

The company, while sharing its Q3 business update with the stock exchanges, said the edible oil segment has recorded volume growth in the "high-single-digit", the food & FMCG segment in the "high-20s" and industry essentials has grown by over 40 percent.

In terms of value, however, the edible oil segment's growth will be in the "low-single-digit", the regulatory filing suggested. The food & FMCG segment's value is seen to be growing in "the mid-40s", whereas, industry essentials are in the "high-teens".

Behind the strong volume growth, the company cited the festive season and the fading COVID-19 effect, among other factors.

"The large available opportunity in kitchen essentials, combined with our approach of establishing efficient operations, is allowing us to drive a strong volume growth across categories at scale. Growth is also being driven by the expansion of our distribution, increasing direct reach across urban and rural markets and execution excellence in alternate channels," it added.

The food business continued to grow at a "very strong rate", driven by increasing penetration and amply supported by its wide-spread distribution network of edible oils across India, the company said.

The wheat flour category grew strongly driven by an increase in "retail outlet reach" and "high-paced growth in alternative channels", among other factors. The company also commissioned a new wheat flour unit at its existing plant in Bundi, Rajasthan.

In the rice business, Adani Wilmar said that non-basmati Rice, which is 90 percent-plus by volume share in India, "is another under-served category which will become a growth driver for the company".

The industry essentials segment, which is the key driver behind the surge in Q3 volume, recorded a sharper growth due to higher production e- sale of de-oiled cakes (DOC), the company said.

"Additionally, oleochemical and castor, which together contribute close to 55 percent of overall segment volume, also witnessed good growth. The company continued dominance in castor exports, increasing its market share (of total castor exports from India) to ~32 percent in Q3FY23," it added.