Adani Wilmar Limited IPO

FMCG company Adani Wilmar, a joint venture between Adani Group and Wilmar Group, plans to raise Rs 4500 crore through initial public offering (IPO).


Company Summary

Adani Wilmar is one of the leading fast moving consumer goods (FMCG) company in India. The company focuses in providing essential kitchen commodities such as edible oil, wheat flour, rice, pulses and sugar. The company’s products are offered under different brands at various price levels catering to diverse customer groups.

Adani Wilmar has a dominant position among edible oil brands and it has a market share of 18.30% in branded edible oil category. Its flagship brand “Fortune” is the largest selling edible oil brand in India.

The company has a wide range of edible oil products which include soyabean oil, palm oil, sunflower oil, rice bran oil, mustard oil, groundnut oil, cottonseed oil, blended oil, vanaspati, specialty fats and a range of functional edible oil products with distinctive health benefits.

The company has 22 plants which are strategically located across 10 states in India, comprising 10 crushing units and 18 refineries. The company’s refinery in Mundra is the one of the largest single location refineries in India with a designed capacity of 5,000 million tonne per day.

The company plans to expand their business based on integrated business model and seek to develop additional integrated manufacturing facilities in the near future. Moreover, they also expect to establish additional food processing units at its existing crushing units or refineries.

The company operates in the following industries: packaged food , packaged edible oil, personal care, castor oil and derivatives, and oleochemical.

Company Strengths

  • Leading consumer product company with dominant position in edible oil and packaged food business as well as industry essentials.
  • Integrated business model with well-established operational infrastructure and robust manufacturing capabilities.
  • Strong raw materials sourcing capabilities.
  • Expansive pan-India distribution network.
  • Experienced and qualified senior management team.


Financial Summary

Particulars

                         For the year/period ended (Rs in Crore)

31-Mar-21

31-Mar-20

31-Mar-19

Total Assets

13,326.64

11,785.92

11,602.87

Total Revenue

37,195.66

29,766.99

28,919.68

Profit After Tax

727.65

460.87

375.52


Company Promoters

Adani Enterprises Limited, Adani Commodities LLP and Lence Pte. Ltd are the promoters of the company.


Purpose of the IPO

The company wants to use the net proceeds from the IPO in the following ways:

  • To expand their existing manufacturing facilities and to develop new manufacturing facilities aggregating to Rs 1900 crore.
  • Repayment and prepayment of their borrowings totalling to Rs 1170 crore.
  • Funding strategic acquisitions and investments amounting to Rs 500 crore.
  • For general corporate purposes.