Adani Wilmar to Invest Rs 600 Crore in Edible Oil Expansion and Solar Power
Adani Wilmar Ltd has announced a significant investment of approximately Rs 600 crore for the current fiscal year, primarily aimed at expanding its edible oil processing capacities and enhancing its solar power generation capabilities. The investment is part of a broader expansion strategy, which includes ongoing programs totaling around Rs 3,400 crore to boost capacities across its various business segments, said Angshu Malick, the company’s MD & CEO.
The company, a joint venture between Adani Group and Singapore's Wilmar International, intends to use the funds to not only scale up its processing facilities but also to introduce new food products targeting both consumers and institutional buyers. This strategic move is expected to drive higher volume growth and bolster the company's market position.
In addition to these expansion plans, Adani Wilmar has committed to meeting the Securities and Exchange Board of India (SEBI) regulations by reducing the promoters' stake in the company from 88% to 75% by February next year. This adjustment aims to comply with SEBI's requirement for a minimum public shareholding of 25%. Currently, the company’s market capitalization stands at Rs 45,794 crore.
The Ahmedabad-based company, which operates across the edible oil, food & FMCG, and industry essentials sectors, reported a strong financial performance for the first quarter of the fiscal year 2024-25. Adani Wilmar’s consolidated net profit for the April-June quarter reached Rs 313.20 crore, a notable turnaround from the net loss of Rs 78.92 crore recorded in the same period the previous year. The company’s total income for the quarter rose to Rs 14,229.87 crore, up from Rs 12,994.18 crore year-over-year.
Malick highlighted the company’s robust performance in the first quarter, with a 12% increase in volume and a 10% rise in value. In its core business of edible oil, Adani Wilmar achieved a milestone of one million tonnes in sales, reflecting a 12% growth in volume. The food and FMCG segment also performed well, with revenue growing by around 40% in both volume and value terms. Excluding rice exports on a government-to-government basis, the volume growth in the food and FMCG segment was 19%. However, the industry essentials segment remained stagnant during this period.
Malick attributed the stable prices of edible oils during the June quarter as a key factor in navigating the high inflationary environment. He noted that cooking oils constitute a significant portion of the grocery basket for consumers, highlighting the importance of maintaining price stability in this sector.
Looking ahead, Malick emphasized that the monsoon season would play a critical role in driving higher growth. Favorable monsoon rains and a good harvest of Kharif crops are expected to boost rural incomes and contribute to stronger sales in the latter half of the fiscal year. The company also anticipates increased sales of edible oils and food products due to the extended marriage season starting in November.
On the expansion front, Malick detailed plans to complete the ongoing capital expenditure programs of Rs 2,200 crore within the fiscal year. The Rs 1,200 crore capex program initiated last fiscal is slated for completion by March 2026. Additionally, the company will initiate a new capex program of Rs 500-600 crore, focusing on expanding oilseed processing capacities, including sunflower and cottonseeds, and increasing solar power generation from 8 MW to 15 MW. Some funds will also be allocated for the maintenance of existing plants.
During the April-June quarter, Adani Wilmar’s revenue from the edible oil business grew by 8% to Rs 10,649 crore, compared to Rs 9,845 crore in the previous year. The food and FMCG business saw a 40% increase in revenue, reaching Rs 1,533 crore from Rs 1,097 crore, while the industry essentials segment’s revenue remained flat at Rs 1,986 crore.
