Adani Wilmar Group / What will Wilmar do after exiting the Adani Group, this plan has come to the fore

Adani Wilmar Group: Wilmar plans a significant change in its strategy after the exit of Adani Group from India's largest edible oil company Adani Wilmar Limited (AWL). According to sources, Wilmar will now focus on growing its high-margin FMCG (fast moving consumer goods) business. The company is preparing to strengthen its position in the Indian market by leveraging its core business and wide distribution network.

Preparing to adopt a strategy like ITC ITC had expanded into FMCG using its strong cigarette business. Similarly, Adani Wilmar plans to use its leading edible oil business as a base for FMCG growth. Sources said that Wilmar may introduce more global FMCG brands in the Indian market after the exit of Adani Group. This move will help Wilmar broaden its portfolio and achieve higher profitability.

Growth in FMCG segment Adani Wilmar's FMCG business recorded a 24 percent annual growth in volume terms in the December 2024 quarter. The share of food and FMCG in total sales volume has increased to 20 percent. In addition, the share of this segment in total revenue has increased to 9 percent. This is a clear indication that the company is moving towards prioritizing its FMCG segment and establishing it as a key business.

Impact of Adani Group's exit The name of Adani Group is often in the headlines, and this time it happened the same way. On Monday, Adani Group announced that it is exiting FMCG company Adani Wilmar completely. Adani Group has sold its 44 percent stake to Wilmar International. This decision means that now Gautam Adani will not sell grocery items like oil, flour, pulses, and rice.

After this decision, Adani Wilmar's stock market registered a huge decline. On Tuesday, 31 December 2024, at the time of writing the news, the company's shares fell 7.2 percent to Rs 305.65. This decline in the stock market has come due to Adani Enterprises' exit from the 25-year-old joint venture.

What is the significance of the deal? Adani Group has struck a deal of Rs 16,000 crore with Wilmar International. Adani Group now plans to use this amount to invest in its businesses like energy, utilities, transportation and logistics. This move of Adani Group is part of the strategy to focus more on its core businesses.

Future plans Adani Wilmar will now focus on expanding its FMCG segment. The company will strengthen its presence in both small and large markets by expanding its distribution network. Wilmar can now launch new brands and products in the Indian market, which will give it a chance to achieve higher profitability.

Overall, Wilmar's strategy after the exit of Adani Group can bring a big change in the Indian FMCG market. This new strategy of the company will give it a competitive advantage and help it stand at par with big companies like ITC.