Adani Wilmar CEO Angshu Mallick shares his thoughts on commodity prices
Learn more about the future plans of Adani Wilmar from the CEO himself.
In a recent interview, Angshu Mallick, CEO of Adani Wilmar Ltd has expressed his views on rising commodity prices. According to him, the rising prices have impacted not only the commodity but also packing material, utility, transportation, labour. Whereas in Adani Wilmar they have managed to pass stable prices on to the customers without much loss of business and have been managing the bottom line, there is growth in the top line in terms of volume growth.
Due to the heated global geopolitical conditions, there was a strain on the supply chain management in sunflower oil but the Adani Wilmar has estimated the decline in the demand from two and a half lakh metric tons per month to one lack metric tons per month due to price hikes by 15% to 20%. The CEO has stated that if the consumption volume is as expected then the company has two months of inventory and some parcels from Argentina and Russia are expected soon, therefore the supply chain situation is manageable.
He also shared that their market share was 18.3% at the start of the year and over the last 11 months they have reached around 18.9% and wish to exit at 19-19.1%. Against almost flat market growth they have managed to grow almost 6% this year in terms of volume. This was achieved mainly because of their pressure on the rural activation program and coverage expansion plan. Angshu Mallick stated, "We are evaluating some proposals on acquisition in food arena and we are open for either brand acquisition or asset acquisition or even strategy investment in certain key areas where we can join hands together and create more value.”
The margins are under pressure because of the allround inflation in all the segments of business but the brand being strong, they have been able to increase the market share and pass on the price hike smoothly. The company hopes to its revenues with a CAGR of 19% for revenues and 24% for EBITDA for FY21-24.
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