InvestorQ : What is the idea of Adani Wilmar in selling branded staple rice across India?
Sam Eswaran made post

What is the idea of Adani Wilmar in selling branded staple rice across India?

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Moii Chavate answered.
2 months ago
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Adani Wilmar is trying out something bold. It is planning to create an FMCG model to sell staple rice; the rice that we all consume on a daily basis at home. The only problem is that the demand patterns are extremely regional, unlike Basmati. But Adani Wilmar may have an answer to the problem. It is looking to customize staple rice in a way that it suits regional tastes like Minikhet in Bengal, Sona Masuri in Uttar Pradesh, Kolam rice in South India etc.

It is looking to acquire local rice mills in various key rice consuming markets and then purchase the local rice from the farmers, mandis and brokers to give a local flavour. Adani Wilmar has acquired a sick rice processing unit in West Bengal with a milling capacity of 35 million TPA. It is also looking at similar acquisitions in Uttar Pradesh and also in South India for regional colour. Here is how they are planning.

Adani Wilmar plans at least 1 unit each in all the states and then to scale-up. Adani Wilmar has 22 own factories plus sourcing arrangement with another 28 plants across India. Adani Wilmar will target 30% growth in rice staples and they expect rice staples to grow at five times the rate of growth in edible oil. So you have a national brand and regional flavour.

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