Mumbai: India’s AWL Agri Business, formerly known as Adani Wilmar, is pivoting towards its high-margin packaged foods segment to reduce dependence on its price-sensitive edible oil division. The company plans to increase the packaged foods share to 30% of total volume within five years, up from the current 20%, Managing Director and CEO Shrikant Kanhere said in an interview with Reuters.
“Food remains a high focus for us because it offers a stronger margin profile compared to edible oils,” Kanhere explained. His appointment as MD and CEO follows the tenure of Angshu Mallick, marking a new phase in the company’s diversification strategy.
Expanding Beyond Edible Oils
The company’s move mirrors industry peers like Marico, the owner of the Saffola brand, which has expanded its portfolio with oats, muesli, and soya nuggets to meet growing consumer demand for branded, convenience-oriented staples.
AWL Agri Business, which markets products under the Fortune brand, expects revenue growth of about 10% in the second half of the fiscal year, supported by expanded product reach and availability. The company currently services around 900,000 retail outlets across India and plans to extend this network to 1 million by next year.
Margin Pressures and Inflation Challenges
According to government data, oils and fats inflation averaged 18–21% during the September quarter, the highest among food and beverage categories. Persistently high edible oil prices over the past year have squeezed consumer demand, with many opting for cheaper substitutes.
The company’s shift to packaged foods is a strategic response to this volatility, offering a more stable revenue stream in a segment less exposed to global commodity fluctuations. While the company recorded 35% growth last year—driven by a surge in edible oil prices—the momentum has since moderated as high prices curbed volumes.
Outlook
With food inflation and raw material costs continuing to weigh on margins, AWL’s focus on value-added products is expected to strengthen profitability and resilience. The company’s long-term plan aligns with India’s broader trend toward branded and processed food consumption, underscoring the growing importance of diversification in the country’s fast-evolving agri-food sector.
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