AWL Agri Business, formerly Adani Wilmar, is looking to beef up its presence in the southern and central markets of India via acquisition of food companies in condiments and kitchen essentials, MD & CEO Angshu Mallick said in an interaction with FE on Tuesday. The need to enter these markets comes as AWL Agri Business eyes geographic expansion of its operations across the country. The company, which has brands such as Kohinoor and Fortune, is strong in the north and western parts of India. It closed FY25 with revenue of Rs 63,672 crore.
From a portfolio perspective, the company is looking to enter new categories such as organic foods and cold-pressed edible oils, Mallick said. Its food portfolio business crossed Rs 6,000 crore in FY25 and contributes 10% to company topline. Mallick says that the company may tap acquisitions to achieve its objective of portfolio expansion. Edible oil, led by the Fortune brand, contributes around 78% to topline while industry essentials, led by oleochemicals, contributes 12% to turnover.
“Our last acquisition was GD Foods (in March 2025), which makes the Tops brand of pickles and sauces. While the acquisition gives us a good foothold in condiments and cooking essentials, sales are concentrated in the north. We would like to do a similar acquisition(s) in south and central parts of India to grow geographically,” Mallick said.
The company has also lined up capital expenditure of over Rs 1,000 crore in FY26 to beef up capacity in oleo chemicals, foods and edible oils. The company is also eyeing mid-to-high teen revenue growth in FY26, led by a consumption uptick starting August, Mallick said, led by favourable macro-economic factors, lower edible oil prices and a combination of fiscal and monetary policy measures that should perk up urban and rural demand.
“While rural growth has been reviving, the early onset and quick spread of the monsoon this year augurs well for the FMCG market,” Mallick said. “Edible oil prices have also softened after the government cut import duties on May 30. We cut prices by 10% in June. As we get into the festive season, edible oil consumption should improve on lower prices,” he added.
In the June quarter of FY26, the company posted a 24.5% year-on-year decline in its consolidated net profit to Rs 236.4 crore due to higher expenses. The revenue of the company grew nearly 21% for the quarter under review at Rs 17,058.7 crore, driven by higher edible oil prices, against Rs 14,154 crore in the same quarter a year ago. Volumes in its edible oil business declined 4% year-on-year in Q1 on higher prices.
The earnings before interest, tax, depreciation and amortisation (Ebitda) reduced 41.5% to Rs 366 crore against Rs 626.2 crore in the year ago period, while margin came in at 2.15% in Q1 against 4.42% reported last year.
“We witnessed a temporary volume decline, primarily influenced by the consolidation of our regional rice operations and muted consumer demand, as edible oil prices were up, almost 20-22% higher, after import duties were hiked in September last year,” Mallick said.
Apart from the reduction in import duties, Mallick says that the normalisation of palm oil prices is likely to support volume growth of edible oils in the coming quarters.
