INDIA-Adani Wilmar, a leading packaged food company in India, is foresting increased sales for edible oils in the third quarter following high demand during the festive season coupled with increasing out-of-home consumption.
Adani Wilmar, a joint venture between Indian conglomerate Adani Group and Singapore’s Wilmar Group, offers most of the essential kitchen commodities including edible oil, wheat flour, rice, pulses, and sugar.
Forecasting its sales results, the company has said that packed oil sales increased by high-double digits during the third quarter attributed to increased consumption.
Consumable products have experienced a hitch in the previous years due to the covid 19 pandemic which limited out-of-home consumption followed by the impacts of the Russia-Ukraine conflict, the two countries that supply much of the world’s sunflower oil.
However, Adani Wilmar has observed that price volatility in its mainstay edible oil was lower in the third quarter compared with the last quarter, adding that segmental volume growth was seen at the high-single-digit.
Expecting to release the quarter 3 report on February 8, the company is optimistic that the sales growth will outdo quarter 2 following the trend experienced during the festive season.
“This year, festivals and weddings were celebrated at a much larger scale, compared to the base quarter which got impacted by lingering COVID effect,” the company said.
In addition, growth in the third quarter has been broad across both urban and rural towns, with higher saliency in urban markets, Adani Wilmar said.
Pointing out more on the difference, the company has said that the growth pace in the second quarter was mostly dragged by a decline in the edible oil business, which is known for Fortune cooking oil.
Meanwhile, the company’s food and FMCG segment posted high-20s growth in volumes and mid-40 growth in value in percentage terms during Q3FY23.
Adani said the food business continues to grow at a very strong rate, driven by increasing penetration and amply supported by their wide-spread distribution network of edible oils across India.