AWL Agri Eyes ₹10,000 Crore Food Revenue by 2027, Shifts From Edible Oil
Overview
AWL Agri Business is charting a significant course correction, aiming to triple its food revenue to ₹10,000 crore by March 2027. The move represents a strategic pivot away from its heavy reliance on volatile edible oils, seeking to bolster overall margins and de-risk operations. The company plans to capitalize on the growing demand for branded staples, leveraging its existing infrastructure and brand recognition.
Strategic Pivot to Food
AWL Agri Business, formerly known as Adani Wilmar, is strategically repositioning itself as a formidable player in the broader food sector, aiming to significantly diminish its dependence on the unpredictable edible oil market. The company currently derives 18%-19% of its revenue from food products under its Fortune brand, a figure it intends to expand to 30%-35%. This strategic realignment targets a substantial increase in food business revenue from the current approximately ₹6,000 crore to ₹10,000 crore by March 2027.
Margin Enhancement and Risk Mitigation
Company leadership highlights that the expansion into food is not merely about scale but also about improving profitability and business stability. Food products generally command superior gross margins, often reaching up to 25%, compared to edible oils which typically hover between 12%-13%. Similarly, EBITDA margins for food items can reach 8%-9%, substantially higher than the 4%-4.5% seen in the edible oil segment. This shift is viewed as a critical strategy to de-risk the business from the inherent volatility of commodity oil prices.
