AWL Agri Business, previously known as Adani Wilmar, is strategically targeting new acquisitions, particularly in the pulses and spices segments, to enhance its footprint in the food sector. During a recent conversation, Managing Director and CEO Angshu Mallick revealed the company’s ambitions, highlighting its recent acquisition of GD Foods, recognized for the renowned Tops brand of pickles and sauces, valued at ₹603 crore.

Recent Acquisitions to Strengthen Market Presence

Before securing the Tops brand last month, AWL Agri Business made headlines with its acquisition of Omkar Chemicals for ₹56 crore in July 2024. This move is aimed at enhancing its specialty chemicals division, which now accounts for 10% of the company’s total revenue.

A New Identity and Growth Strategy

With the unveiling of a new logo and a rebranding initiative following the departure of the Adani Group, Mallick expressed eagerness to amplify the company’s food sector presence. The goal is ambitious: to double revenue from this segment within the next 3-4 years. In FY25, the food and FMCG division experienced a remarkable 26% year-on-year sales growth, surpassing ₹6,000 crore and contributing 10% to overall revenue.

Notably, the Fortune edible oil brand, which once contributed 85-90% to revenue, has seen its share decline to approximately 80% as the company diversifies its growth avenues.

Tapping into the Branded Staples Market

Mallick emphasized the potential for growth within the branded staples and pulses market. With many essential items like rice and wheat flour still sold in loose form across India, branded products hold only 8-10% market share. This indicates significant room for expansion.

• Current Goals:
  • Focus on branded staples and pulses.
  • Increase market penetration where unbranded options dominate.

Expanding Distribution Channels

The company currently operates through 860,000 outlets, with plans to extend this network to 1 million within the next few years. In FY25, direct distribution saw a 19% year-on-year growth, while rural outreach expanded to over 50,000 towns, a tenfold increase since FY22.

Mallick noted the vast opportunities in rural markets for packaged foods, despite challenges in urban demand during FY25. However, projections for FY26 are optimistic, fueled by anticipated normal monsoon seasons and government fiscal stimulus measures expected to stabilize urban consumption.

Revenue Growth through Alternate Channels

In FY25, alternate distribution channels generated over ₹3,600 crore in revenue, driven by a staggering 100% growth in quick commerce volumes in the fourth quarter. This surge reflects the success of strategic improvements in product assortment, availability, and promotional efforts.

The company’s targeted approach in under-indexed markets yielded impressive results, particularly in the southern region, which experienced a 25% year-on-year growth in FY25.

With a clear vision for the future, AWL Agri Business is poised to capitalize on its growth strategies and adapt to the evolving landscape of the Indian food industry.