Adani Wilmar IPO: Adani Wilmar is among the few major FMCG foods companies from India that can provide the majority of the necessary kitchen items for Indian consumers, such as edible oils, wheat flour rice, pulses, as well as sugar. Essential items, such as food oils, flour rice, pulses, as well as sugar, make up around 66% of all the money spent on kitchen essentials in India. Adani Wilmar offers a range of essentials like rice, wheat flour, pulses, as well as sugar. Adani Wilmar products are offered in a variety of brands that span a wide price range and can be adapted to various customer segments.
Adani Wilmar is a joint venture formed in 1999 by both the Adani Group, which is an international business conglomerate with significant stakes in the logistics and transport, as well as utility and energy industries, and the Wilmar Group, which is one of the top agribusiness companies in Asia that was ranked as one of the top listed companies according to market capitalization, at the Singapore Exchange as of June 30th, 2021.
Adani Wilmar’s product portfolio includes the following categories (i) edible oils, (ii) packed food products and FMCG as well as (iii) the essentials of industry. The majority of the company’s sales are branded, which account for 73% of the company’s edible oil, food, and FMCG sales for the fiscal year 2021 (excluding the essentials for industry, which were sold on an unbranded basis).
Names of Promoters:
- Adani Enterprises Limited
- Adani Commodities LLP
- Lance Pte. Ltd.
Adani Wilmar Company Financials:
The following table will provide a Summary of consolidated financial information.
|Particulars||As of and for the Fiscal ended (in ₹ million)|
|March 31, 2021||March 31, 2020||March 31, 2019|
|Profit After Tax||7,276.49||4,608.72||3,755.21|
|IPO Opening Date||NA|
|IPO Closing Date||NA|
|Issue Size||aggregating up to ₹4,500.00 Cr|
|Offer for Sale||NA|
|Issue Type||Book Built Issue IPO
|Face Value||₹1 Per Equity Share|
|Price Band||₹. to ₹. per equity share|
|Min Order Quantity||NA|
|Listing at Exchanges||BSE & NSE|
Objects of the Issue:
- Funding Capital Expenditure to expand existing manufacturing units.
- Repayment/prepayment of our borrowings
- Funding strategic acquisitions and investments
- General corporate purposes
Adani Wilmar IPO Time Table:
|IPO Open Date||NA|
|IPO Close Date||NA|
|Basis of Allotment Date||NA|
|Initiation of Refunds||NA|
|Credit of Shares to Demat Account||NA|
|IPO Listing Date||NA|
Adani Wilmar IPO Lot Size:
The market lot size is _ shares. A retail-individual investor can apply for up to _ lots (_ shares or ₹_)
Adani Wilmar IPO Subscription status:
|Category||Shares Offered||Percentage (%)||Subscription (times)|
|Qualified Institutional Buyers (QIB)||-||-||NA|
|Non Institutional Investors (NII)||-||-||NA|
|Retail Individual Investors (RII)||-||-||NA|
Adani Wilmar Vision
- Adani Wilmar vision is to become a world-class Agribusiness firm that is committed to sustainable offer safe, nutritious, and high-quality agricultural commodities and food products through the use of innovative technology high standards for environmental and social practices, and the establishment of sustainable livelihoods for communities where Adani Wilmar operate to deliver long-term value to everyone involved.
Adani Wilmar Business
- Adani Wilmar is one of the very few large FMCG food businesses in India that offers the majority of the kitchen essentials for Indian consumers, such as edible oils, wheat flour, pulses, rice, and sugar. (Source: Technopak Report) Essential items, like food oils, flour pulses, rice, and sugar, make up around 66% of expenditure on kitchen essentials in India. (Source: Technopak Report) Adani Wilmar offers a range of essentials like rice, wheat flour, sugar, pulses, and more. The company’s products are sold with a wide range of brands that span a wide price range and serve various customer segments.
- Adani Wilmar is a joint venture formed in 1999 by both the Adani Group, which is an international business conglomerate that has significant interests in logistics and transportation, as well as utilities and energy sectors, as well as Wilmar Group, Wilmar Group, which is one of Asia’s most agribusiness-focused groups which was among the top listed firms by market capitalization the Singapore Exchange as of June 30th, 2021. Since it is a joint venture between both the Adani Group and the Wilmar Group, they are able to benefit from extensive parental relationships.
- Adani Wilmar benefits from the Adani Group’s deep understanding of the local market, its extensive knowledge of domestic trade, and the most advanced logistics network in India and leverages its Wilmar Group’s global capabilities in sourcing and expertise in technical aspects. The range of products is spread across 3 categories: (i) edible oil, (ii) packaged food and FMCG as well as (iii) essentials for the industry. A large portion of sales is brand-name products, accounting for around 73% of the edible oil, food, and FMCG sales in the year 2021 (excluding those essentials to the industry that were sold on the basis of non-branded products).
- In recent times, Adani Wilmar has been shifting their focus to value-added products with the intention of diversifying revenue streams and creating profits that are high. The value-added products that the company has recently launched include functional edible oils including the rice bran oil for health, fortified meals prepared-to-cook soya chunks, the khichdi FMCG.
- Adani Wilmar’s strong raw material ability to source raw materials is supported by their market position and extensive business relationships. Adani Wilmar was India’s largest importer of crude edible oils on March 31st in 2020 (Source: Technopak Report) This gave them the ability to negotiate higher-quality raw materials at advantageous commercial terms.
- Adani Wilmar also benefits from the assistance and support from the Wilmar Group. Wilmar Group for market intelligence and raw material procurement, as well as their long-standing relationship with international vendors. At the time in the Draft Red Herring Prospectus, Adani Wilmar has 22 plants that are strategically placed across 10 states of India which include 10 crushing units as well as 18 refineries. Of the refineries that are 18 in total, 10 are port-based in order to make use of the import of edible crude oils and cut down on transport costs, whereas the remainder is situated in the hinterlands close to the raw material production bases to lower storage costs.
- The company refinery located in Mundra is among the largest refineries with a single location in India with a capacity of 5,000 MT daily (Source: Technopak Report). Alongside the 22 refineries Adani Wilmar own, they also utilized 28 tolling units at the time of the 31st of March, 2021 that gives them more production capacity. Therefore, they have and will remain an asset-light model of business.
Adani Wilmar Key Business Categories
- Edible Oil
- Packaged Food and FMCG
- Industry Essentials
Adani Wilmar Market Opportunity
- Indian consumption of essential oils and food staples is still strong
- Significant increase in the demand for packaged food items in India
- Change in consumer preference for branded products, leading to huge market potential
Adani Wilmar Competitive Strengths
- Diversified and differentiated portfolio of products with market-leading brands to take a significant share of kitchen spending across India
- A leading product for consumers manufacturer in India that is a leader in the brand products, packaged foods, and edible oils products
- A market-leading position in the industry’s essentials
- Solid raw material sourcing capabilities
- The business model that is integrated with a solid operational infrastructure and robust manufacturing capabilities
- Extensive pan-India distribution network
- Concentrate on the sustainability of the environment and society
- Strong parentage, professional board, and management with experience
- Unfavorable global and local weather patterns can impact the results of operations, business, and financial health.
- Adani Wilmar’s operations are dependent on the availability of large quantities of raw materials such as palm oil that is not refined Soyabean oil, soybean and sunflower oil wheat, paddy, and oilseeds. The company does not have long-term agreements with suppliers of raw materials, and any cost increase for or a shortage in the supply of these raw materials may affect operations and business results and seasonal variations may also cause variations in the results of operations.
- Adani Wilmar depends significantly on imports of raw materials or finished items in addition to its domestic supply, and a variety of causes could lead to the insufficient supply of raw materials or finished goods or lead to an increase in price in order to procure enough raw materials or finished goods to fulfill operational requirements.
- Adani Wilmar derives a substantial portion of its revenue from edible oil, a business segment that is booming and any decrease in the demand or production of these products can affect the business, its results of operations, and financial position.
- Adani Wilmar products are in the category of commodities and can fluctuate, which can affect their profitability.
- The fluctuation of the exchange rate among and the Indian rupee and foreign currencies can impact negatively on the business.
- Restrictions on imports by countries other than the United States on products can result in a significant negative impact on financial performance, business, and results from operations.
- Faulty storage, handling, or processing of products or raw materials or products, or the spoilage and destruction to such products and raw materials, or any real or apparent contamination in the products, can cause them to be the subject of legal and regulatory actions as well as damaged reputation and cause an adverse impact on the performance and financial performance.
- Certain companies in Adani Group. Certain companies within the Adani group (including the members of the Promoters, Promoter Group, and Group Companies) are involved in numerous legal, regulatory, and other legal proceedings that can have a negative impact on the reputation of the business and its operations.
- A shutdown or slowdown in manufacturing operations or the under-utilization of manufacturing facilities may have a negative effect on the business, results from operations, and financial performance.
- In the event that Adani Wilmar is unable to launch new products or respond to changes in consumer preferences effectively and quickly in a timely manner, consumer demand for the products could decline which could affect the business, its results of operations, and financial health. It is not certain that they will succeed in the business areas that the company is planning for expansion into.
- Adani Wilmar lack of ability to correctly forecast demand, or the price of products, and to manage inventory can impact negatively on the business, its results, and financial health
- A lack or absence of fuel, electricity, or water can adversely affect manufacturing processes and may have negative effects on the performance and financial health
- The company could accidentally deliver GMOs (“GMOs”) in the hands of customers who request products that are GMO-free.
- Adani Wilmar is subject to risks to businesses that are associated with those in the palm oil or soybean oil industries, which could adversely impact business.
- Negative publicity about stars who promote products or brands can negatively affect their image and affect the business negatively.
The inefficiency for crushing operations due to the lower seed production in the country and higher prices for imports of edible oils that are not refined could result in the inefficiency of costs
- Adani Wilmar is subject to counterfeit, cloned, or pass-off merchandise, which can decrease sales and hurt the reputation and image of the brand.
- The competition in the industry in which companies are operating can result in a decrease in market share, or even require the company to invest a substantial amount for marketing and advertising, either of which can negatively impact the business’s performance, results of operations, and the financial condition of the company.
- Adani Wilmar’s ability to adopt technological advances to meet the demands of innovative and better products presents challenges for businesses. The costs of implementing innovative techniques for operations may be substantial and negatively impact business results, operations, cash flows, and the financial position of the company.
Adani Wilmar Strategies
- Make the most prestigious consumer packaged foods in India. FMCG business in India
- Expand distribution network using an omnichannel approach
- The focus is on enhancing brand awareness
- Continue to introduce new products and increase the customers’ base
- Explore strategic acquisitions
- Concentrate on multiple drivers to e
Board of Directors:
|Kuok Khoon Hong||Non-Executive Chairman|
|Angshu Mallick||Chief Executive Officer and
|Pranav Vinod Adani||Non-Executive, NonIndependent Director|
|Non-Executive, NonIndependent Director|
|Dorab Erach Mistry||Independent Director|
|Dipali H Sheth||Independent Director|
|Anup Pravin Shah||Independent Director|
Adani Wilmar IPO Prospectus:
Adani Wilmar IPO Registrar:
- Link Intime India Private Ltd
Phone: +91-22-4918 6270
IPO Lead Managers:
- BNP Paribas
- BofA Securities India Limited
- Credit Suisse Securities (India) Private Limited
- HDFC Bank Limited
- ICICI Securities Limited
- J.P. Morgan India Private Limited
- Kotak Mahindra Capital Company Limited
Registered and Corporate Office:
Fortune House, Near Navrangpura Railway Crossing, Ahmedabad 380009, Gujarat, India
Contact Person: Darshil Lakhia, Company Secretary and Compliance Officer; Tel: +91-79-26455848
Corporate Identity Number: U15146GJ1999PLC03532