Adani Wilmar - IPO

Adani Wilmar : No. 1 edible oil brand in India / “Fortune”, our flagship brand, is the largest selling edible oil brand in India.

Adani Wilmar is subsidiary of Adani Enterprises and it is mainly into food processing business of Edible Oil, Food products - Rice , Soya Chunks, Besan and Sattu, Pulses , Khichdi,  Wheat Flour, Sugar, FMCG Products - Soap, Hand wash, Sanitizer.

Adani Group + Wilmar Group = Adani Wilmar. 

Wilmar group is Singapore based which is one of Asia’s leading agribusiness groups which was ranked among the largest listed companies by market capitalization on the Singapore Exchange as of February 2021.

Here is the financial health of Adani Wilmar

Financial Year	Total Assets In Million	Total Revenue In Million	Profit After Tax In Million
2019-20	Rs. 73,304.19	Rs. 296,570.00	Rs. 3,888.00
2018-19	Rs. 75,965.68	Rs. 287,975.00	Rs. 3,655.00

Should we apply for Adani Wilmar IPO?

Yes. Adani holds a big brand name in India and there are multiples ventures that is running by Adani in power sector, Natural gas sector, Green energy sector etc. 

Some Positive points related to FMCG.

Fast-moving consumer goods (FMCG) sector is India’s fourth-largest sector with household and personal care accounting for 50% of FMCG sales in India. The FMCG market in India is expected to increase at a CAGR of 14.9% to reach US$ 220 billion by 2025, from US$ 110 billion in 2020. The FMCG sector's revenue growth will double from 5-6% in FY21 to 10-12% in FY22, according to CRISIL Ratings. The Indian processed food market is projected to expand to US$ 470 billion by 2025, up from US$ 263 billion in 2019-20.

The Government has allowed 100% Foreign Direct Investment (FDI) in food processing and single-brand retail and 51% in multi-brand retail.

Some of the recent developments in the FMCG sector are as follows:

• In November 2021, Tata Consumer Products (TCPL) signed definitive agreements to acquire 100% equity shares of Tata SmartFoodz Limited (TSFL) from Tata Industries Limited for a cash consideration of Rs. 395 crore (US$ 53.13 million). This move was in line with TCPL’s strategic intent to expand into the value-added categories.
• In November 2021, Unilever Plc agreed to sell its global tea business to CVC Capital Partners for EUR 4.5 billion (US$ 5.1 billion. The business being sold—Ekaterra—hosts a portfolio of 34 tea brands including Lipton, PG Tips, Pukka Herbs and TAZO.
• In November 2021, McDonald’s India partnered with an FMCG company ITC to add a differentiated fruit beverage, B Natural, to its Happy Meal, which will be available across all McDonald’s restaurants in South and West India, primarily catering to children aged 3–12 years.
• In October 2021, Procter & Gamble announced an investment of Rs. 500 crore (US$ 66.8 million) in rural India.
• In September 2021, PepsiCo commissioned its Rs. 814 crore (US$ 109.56 million) Kosi Kalan foods facility in Mathura, Uttar Pradesh; it is the company's largest greenfield manufacturing investment in India.
• In September 2021, Vahdam India, an Indian tea brand, raised Rs. 174 crore (US$ 24 million) as part of its Series D round led by IIFL AMC’s Private Equity Fund.
• In September 2021, RP-Sanjiv Goenka Group entered the personal-care segment by launching skin and haircare products, aiming at a revenue of Rs. 400-500 crore (US$ 53.84-67.30 million) in the next 4-5 years
• In September 2021, Adani Wilmar announced the opening of physical stores under the name ‘Fortune Mart’ that will exclusively sell Fortune and other Adani Wilmar brand products.
• In August 2021, Apnaklub, a Bengaluru-based B2B wholesale marketplace for consumer goods, raised US$ 3.5 million in a seed round from Sequoia Capital India’s Surge, increasing the total funds to US$ 5 million.
• In August 2021, Soothe Healthcare, an Indian personal hygiene products brand, raised Rs. 130 crore (US$ 17.54 million) in a Series-C round of funding from A91 Partner Partners.
• In August, Adani Wilmar, a 50/50 joint venture between Adani Group and Singapore-based Wilmar, filed for initial public offering (IPO) to raise up to Rs. 4,500 crore (US$ 607.13 million) for expansion.
• In the fourth quarter of FY21, e-commerce sales of Marico Ltd., Hindustan Unilever Ltd., Dabur India, ITC and Godrej Consumer Products Ltd. were 8%, 6%, 5%, 5%, and 4%, respectively, of the total FMCG sales.
• In July 2021, Emami Ltd. increased its stake (by 15% to 46%) in Helios Lifestyle, which sells male-grooming products under The Man Company brand in line with its ambition to tap emerging online opportunities.
• In July 2021, Tata Consumer Products Ltd. introduced 'Eight O'Clock', America's Original Gourmet Coffee, under D2C, besides Tata Coffee 1868 and Sonnets, as a part of its strategy to enhance its D2C approach for select coffee brands and their specific websites. The company plans to add more brands in the D2C space as these three coffee brands stabilise.
• In July 2021, HUL launched in-store vending machine model, Smart Fill machine, for its home care products with the aim to reuse and recycle plastic. Smart Fill machine will allow consumers to reuse plastic bottles by refilling products from its brands like Surf Excel, Comfort and Vim.
• As of June 2021, e-commerce share has already touched 7-8% for some of the largest FMCG companies in the country, according to Accenture India.
• In June 2021, Dabur India announced its Rs. 550 crore (US$ 75.6 million) investment to set up a new plant in Madhya Pradesh for manufacturing of food products, ayurvedic medicines and health supplements.
• In May 2021, Tata Digital Ltd., a 100% subsidiary of Tata Sons, acquired a 64.3% stake in supermarket grocery supplies, the business-to-business arm of BigBasket in tandem with Tata Group’s strategy to build a digital consumer ecosystem. According to the Economic Times, the deal is worth U$ 1.8-2 billion.
• In May 2021, Nepal-based CG Corp Global, known for its popular noodles brand Wai Wai, announced its plan to invest Rs. 200 crore (27.42 million) to set up two new manufacturing plants in West Bengal and Uttar Pradesh.

To improve FMCG market, Indian Government's has taken vital steps like reducing GST, FDI, PLI scheme, Atmanirbhar Bharat, scheme, vocal for local scheme.

In future what is more positive

The number of internet users in India is likely to reach 1 billion by 2025. It is estimated that 50% of all FMCG consumption in India will be made online by 2022. It is estimated that India will gain US$ 15 billion a year by implementing GST and FMCG will play major role in GST contribution. 

Another major factor propelling the demand for food services in India is the growing youth population, primarily in urban regions. India has a large base of young consumers who form majority of the workforce, and due to time constraints, barely get time for cooking.

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