Awl Agri Business Ltd · NSE:AWL
Awl Agri Business — Adani Wilmar — Investor Presentation (August 2023)
64 slides from Awl Agri Business's investor presentation, Aug 17, 2023
Slide 1: Regulation 30 disclosure cover letter
adani wilmar Ref No: AWL/SECT/2023-2024/51 17th August 2023 BSE Limited National Stock Exchange of India Limited Floor 25, P J Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 543458 Scrip Code: AWL Sub: Disclosure under Regulation
Slide 2: Adani Wilmar Limited: Investor Presentation
ad1ani1 1 wilmar edtble otls and foods For a healthy growing nation Adani Wilmar Limited: Investor Presentation August, 2023 ----------------------- -------------------- ------- ------ ------- ------- -- -- --- --- ---- ---- --- --- --- --- --- --- ------ --------------------------------------------
Slide 3: Safe Harbour Statement
Safe Harbour Statement This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar
Slide 4: Opportunity overview
Opportunity overview adanr wilrnar
Slide 5: Analysis on Key Forces Driving Consumption in India
Analysis on Key Forces Driving Consumption in India 1st Force : Income growth Upper-mid income and high-income Segment ➢ 1 in 4 household today ➢ 1 in 2 household by 2030 ➢ There is increase of around 128 Million households in upper-mid income and high-income segment by 2030 Note: Basis Income Per H
Slide 6: Understanding Indian Consumption
Understanding Indian Consumption Consumption of Staple Foods in India is ~ US$ 125 Bn (~INR 10 Lac Crores) - - eta· Sa es $787 Grocery & Food $503 Appare & Accessor"es E ectro ·cs $60 Bn Bn $114 Bn Out of home $75 Bn Apparel & Footwear Home Improvement Fresh food $251 Bn $53 Bn $21 Bn Dairy $25 Bn I
Slide 7: Focus on Center of the Plate Categories
Focus on Center of the Plate Categories Edible oils & staples together form 60-70% of the Indian kitchen / grocery spends TAM Category Branded % (in Lakh Cr.) Edible Oils 2.0 75% Wheat 1.5 12% Rice 2.1 11% Pulses & Besan 1.2 5% Sugar 0.6 6% Spices 1.4 18% Total 8.8 Why the potential? •••• ..,~•, .~,
Slide 8: Why staple food category is attractive for AWL?
Why staple food category is attractive for AWL? High Growth Strong Large Category + Potential + Capabilities Integrated business model Center of the plate Highly unorganized from Sourcing to Sales Branded Staples Risk Management Huge TAM growing faster in agri-commodities India is the largest Wilmar
Slide 9: Mega Trends in Staple Space
Mega Trends in Staple Space Companies are •!• Higher focus on •:• Resta urants / HO,RECA 1 becoming more susta inab iIity across cloud kitchens responsible the value chain Is evolvin g 1 •!• ln1creasi ng •:• Increasing de1 mand Shif t towards for product branded RM traceab ility •!• A nation of a bi
Slide 10: Our Businesses
Our Businesses adanr wilrnar
Slide 11: Dominant leadership in Edible Oils
Dominant leadership in Edible Oils Leadership in most markets and key edible oil categories Dominant Leader Leading in most of the markets Leadership across oils MAT June 2023 #1 ~~ s #1 ~~ ~ Soyabean 19.5% adani wilmar ~.><..# ~~ ~ #1 ~ Mustard Oil ~ e ~-><...IP 50% 13.8% ~~ 6.3% s #1 ~~ ~ ~ ~ Rice
Slide 12: Large Opportunity in Foods Products
Large Opportunity in Foods Products Opportunity to replicate the Edible Oil playbook in other staple food categories AWL’s Share (as % of total volume consumed in India) AWL’s Competencies across oil & foods TAM ~$24bn, Branded: ~85% ✓ Edible Oil ~15% Fortune Brand Equity ✓ Distribution & Retail Rea
Slide 13: Successful brand extension of Fortune
Successful brand extension of Fortune Over 2 decades of trust and quality Fortune: A household name in India Fortune· rtu edible oils and foods ‘Edible Oil’ brand ‘Packaged Foods’ brand ‘Fortune’ brand size is INR 20,000+ Crores
Slide 14: Gaining Market Share in Foods business
Gaining Market Share in Foods business ‘Fortune’ brand has gained consumer acceptance in Food categories Wheat Flour Rice 7.9% 4.9% 5.0% 3.8% 5.7% 5.9% Jun 21 Jun 22 Jun 23 June 21 June 22 June 23 Additionally, Kohinoor had a MS% of 1.3% in MAT June 23 Source: Nielsen, MAT June of respective years
Slide 15: Depth in each of our Product Categories
Depth in each of our Product Categories Wide range of Products produced from each agri-commodity Wheat Products Whole Wheat Wheat Flour Refined Wheat Flour Suji (Semolina) Rawa (Semolina) Fortune Fortune Fortune Fortune Chakki Fresh Atta Maida Suji Rawa Rice Basmati Rice Non - Basmati Rice Biryani K
Slide 16: Building Health & convenience focused food product portfolio
Building Health & convenience focused food product portfolio Increasing focus on value added products Health-focused Edible Oils Blended edible Oils Rice Bran Oil Fortune Xpert Fortune Xpert Fortune Xpert Fortune Total Balance Oil Pro Immunity Oil Pro Sugar Conscious Oil Rice Bran Health Health & Co
Slide 17: Forward-integration of our oleo-chemical business
Forward-integration of our oleo-chemical business Soap Multi-purpose Cleaner For Retail consumers For HoReCa clients For Surface and Utensils Cleaning
Slide 18: AWL's Business Segments
AWL’s Business Segments Edible Oil & Foods business B2B – non Food Edible Oil Food & FMCG Industry Essentials Products: Products: Major Products: Sunflower Soyabean Mustard Atta, Suji, Rawa & Maida Soap Noodles Glycerine Stearic Acid Distilled Fatty Acid Ricebran Cottonseed Groundnut Castor Oil Deoi
Slide 19: Business Mix – FY'23
Business Mix – FY’23 Value - Edible Oil - Food & FMCG - Industry Essentials
Slide 20: Customers
Customers cu .... a da nr wilrnar fortuneloods.com
Slide 21: Seizing opportunity in all key Customer Segments in oil & foods
Seizing opportunity in all key Customer Segments in oil & foods 75%+ of sales is from branded products in FY’23* Emerging Opportunity Households HoReCa Institutional Exports Branded, Branded Branded Non-branded Private Label, Non-branded Key benefits of presence in multiple segments: ➢ Significantly
Slide 22: Brands
Brands cu poha (thick) fOftunefoods.com Net Weight 500 g a da nr wilrnar
Slide 23: Presence across the price spectrum
Presence across the price spectrum Super Premium Premium edible oils and foods - --- al1fe· w ilm;ir KING'S S OYABEAN OIL Popular GD REFINED PALMOLEIN First Choice Wheat Flour (Alla) Avsar CHAR MINAR. A healthy mix of premium and popular brands
Slide 24: Portfolio of scaled up brands
Portfolio of scaled up brands Strong brands built on basis of trust and quality over last 2 decades Value Brands Segment INR 20,000 Cr + rtune edible oils and foods Edible Oil & fats + Food & FMCG ----------1 ~~ r----------.. INR 4,000 Cr + --- KING'S" SOYABEAN OIL Edible Oil & fats * ~INR 1,000 Cr
Slide 25: Marketing
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Slide 26: Celebrity-led advertising on mass media
Celebrity-led advertising on mass media Soyabean Oil Campaign Soyabean Oil Campaign Sunflower Oil Campaign Fortune Atta Campaign King’s Mustard Oil Campaign
Slide 27: Frequent campaigns on social media – focus on region, occasion specific
Frequent campaigns on social media – focus on region, occasion specific Marketing & Branding f o rtune· edible oils ond foods HAPPINESS IS -~ - VVinning free movie tickets for you and your sibling! #Fo,tunoteToHove You "L as t date for entries is 15th August 2022 I I ~lclltllrl "ll\lll •ll l>-1[.)Ll
Slide 28: Engaging consumers on social media through many Influencers
Engaging consumers on social media through many Influencers
Slide 29: Branding Activities by sponsorships of relevant events
Branding Activities by sponsorships of relevant events was a key sponsor on Season 7 of is sponsor of edble oils and food! Masterchef India Women’s Premier League f tun ~ rtu e x
Slide 30: Product campaigns
Product campaigns Khichdi Unlock More Benefit · With the Goodness of 3 Oils -C owpatty Ka Swaad Aur, , Salsa Ka eppy Flavour ~ - Ab Ka o Fortun,e SuperFood Khichd. Ke Me>(ca,n Salsa .A,u Pav :a a·i ke Saa th Savour Rich in natural Rich in PUFA Good for c_--.... ,..---.__) antioxidants Heart Health S
Slide 31: Product campaigns
Product campaigns adani wilmar For a healthy growing nation pulses u chakki fresh atta Soft roti ka vaada ·Otte leane . ' chakki fresh atta notutoltoste noturol ororno notutol fibre 100%Veg.
Slide 32: Product campaigns
Product campaigns Makes e •s o Ju t Khic d1., I s 1 you, biryani Khichdi special every time! ! • ,. biryani special a y o • bosmoti Cook rice · h wi Made from carefully selected basmati grains. Fortune Bi,yani Special's non-sticky and long grain rice makes you, biryani delicious.
Slide 33: Investing in the premium Kohinoor brand
Investing in the premium Kohinoor brand
Slide 34: Sales & Distribution
Sales & Distribution adanr wilrnar
Slide 35: Expanding town coverage and retail outlets
Expanding town coverage and retail outlets Direct Reach Coverage: Rural Towns Rural Saliency > 6 Lac+ Outlets 21,700+ rural towns ~31% (Volumes) Direct Reach: Outlets Coverage: Rural Towns 2.0x 6.7x 4.2x x 1.6x x 1.3x T T T FY20 FY21 FY22 FY23 Q1 FY24 FY20 FY21 FY22 FY23 Q1 FY24 Focus to continue in
Slide 36: Enhancing GTM capabilities to capture demand
Enhancing GTM capabilities to capture demand Everyday great execution Rural Activation & Coverage Expansion • Improving daily visit calls • Rural town expansion • Improving productivity of calls • Improved quality of Town Coverage in Rural • Increase DSM effective coverage • Improved penetration in
Slide 37: Supply Chain & Production Planning
Supply Chain & Production Planning adanr wilrnar
Slide 38: Efficient supply chain to lower cost and capture demand
Efficient supply chain to lower cost and capture demand Manufacturing network designed T Least Cost * for logistics efficiency .r+i 1111 1111 Optimization • Port-based refineries for imported edible oil Dispatch planning to optimize on various • 55%+ of dispatches directly sent to customers paramete
Slide 39: Proximity to markets: A depot at every 250 KM
Proximity to markets: A depot at every 250 KM ~2 Million Sq. Ft. 90 Depots (Depot Storage Space)
Slide 40: Extensive use of data & analytics for supply chain efficiency
Extensive use of data & analytics for supply chain efficiency Production Compliance(MT) 21-0l-202211:12:16AM OI -0- Pecking lnden 1: -0- Acn.aal Production - -- Ll\i:.2 T ~S.58A62696{ 115'\) UMJ Tii6613A.:682118(103') - T :lZlllA:118(19'11 Lll,.EJB T208U,2'72 (11~) li!!!. Sales 210797 ~Fcnt.ilst (ll
Slide 41: Developed reliable systems to tackle supply chain complexities
Developed reliable systems to tackle supply chain complexities Forecasting Accuracy - Pan India Basis 120% 99% 96% 99% 96% 98% 99% 96% 100% 93% 92% 93% 91% 89% 80% 73% 60% 40% 20% 0% 2022 2023
Slide 42: Manufacturing
Manufacturing adanr wilrnar
Slide 43: Large & Integrated manufacturing facilities spread across the country
Large & Integrated manufacturing facilities spread across the country Processing & logistics efficiency, along with quality controls Own Units 23 Units 2 4 2 2 2 2 2 2 2 3 Third Party Units 2 2 2 2 38 Units 2 • Third-party units are primarily on exclusive basis for quality controls 2 2 • Company is
Slide 44: Integrated business model for cost efficiency
Integrated business model for cost efficiency Focus on building integrated plants and adding new units in existing locations Mundra Plant Vidisha Plant End-to-end integrated plant Integrated plant for soya ◼Crushing units and refineries ◼Integrated to produce Vanaspati, margarine, ◼Covers entire val
Slide 45: ESG
ESG adanr wilrnar
Slide 46: Environment, Social & Governance
Environment, Social & Governance Green Energy Water Conservation - Successful solar power implementation at 8 plants - Zero Liquid Discharge out of 23 own units. installed at 9 major plants (2900 KL per day) - Plan to continue such installation across all plants over the years - ZLD ensures recovery
Slide 47: Fortune SuPoshan: A Mission Against Malnutrition & Anemia
Fortune SuPoshan: A Mission Against Malnutrition & Anemia A CSR initiative by Adani Wilmar Ltd . Fortune SuPoshan touches life of three Target Groups 0-5 yrs age children Adolescent Girls Women in Reproductive Age Fortune SuPoshan touches four core areas Health Education Women Sustainable Empowermen
Slide 48: Current Footprint (April 2022 – March 2023)
Current Footprint (April 2022 – March 2023) I I 5 GENDER EQUALITY 14 13 20 129 1200 I I Cf I Sit es States Districts Slums Villages I I I I 550 1,08,132 3,06,409 I I I Sanginis children Women & girls I I I Alwar ~ I Ci) f I t Touched more than 3 lakh The prevalence of Wasting and SAM have found The
Slide 49: Progress (April 2022 – March 2023)
Progress (April 2022 – March 2023) Achievement Sr Particulars No FY 2022- 23 1 Total under five children screened 1,00,000+ Family Counselling 87662 Total complicated SAM children 2 referred to NRC 1204 Community Events Focus Group Discussion 3578 94999 Total children shifted from SAM to 3 MAM 12245
Slide 50: Poshan Shivir
Poshan Shivir Poshan Shivir Beetroot paratha with sprouted moong & chana
Slide 51: Earnings Presentation – Q4FY23
- ------ Earnings Presentation – Q4FY23 50
Slide 52: Key Metrics
Key Metrics cu .... a da nr wilrnar fortuneloods.com
Slide 53: P&L: Performance
P&L: Performance In INR Crores Revenue from Operations Gross Profit 18% 11% 54,155 58,185 5,383 6,002 4,323 3,661 4,281 4,601 37,090 3,583 26,472 28,390 29,736 2,982 23,309 17,887 T T T T T T T FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 I ------------------------
Slide 54: Healthy Margin Profile
Healthy Margin Profile EBITDA per ton Earnings Per Share (EPS) INR Rupees INR Rupees 6.9 6.4 4.5 3.6 3.9 3.4 2.2 0.5 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23
Slide 55: Key Takeaways
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Slide 56: Adani Wilmar Limited as of Today
Adani Wilmar Limited as of Today One of the youngest and largest Food FMCG company in India No. #1 Edible Oil brand Over 2 decades of trust INR 58,185 Crores ~ rtune Food & FMCG player offering edible oi~ and foods Consolidated Operating Revenue No. #2 wheat flour brand kitchen essentials across Ind
Slide 57: Leadership Position in our Key Products
Leadership Position in our Key Products Edible Oil Food & FMCG Industry Essentials [ #1 Edible oil brand in India ] [ #2 in Wheat Flour (atta) ] [ #1 Player in Stearic Acid, Glycerine & Soap Noodles ] [ #1 Soyabean oil, Mustard & Ricebran oil ] [ #3 in Basmati Rice ] [ #1 Castor exporter from India
Slide 58: Key Business priorities
Key Business priorities Strengthen Rural Growth in Higher adoption Network E-commerce of Technology Advertising Volumes Category New Product Green Initiatives & Strategic Expansion Launches & Sustainability Collaboration Collaboration
Slide 59: AWL's advantage
AWL’s advantage Proven Track record Fast-paced growth at scale (leadership position or amongst Top-3 in Large addressable market multiple categories) Potential for margin Leverage existing setup to Large distribution network improvement scale up new categories Support of 2 strong Few competitors Str
Slide 60: #ruknamat Fortune products
Slide 61: Annexure: Detailed Financials
Annexure: Detailed Financials cu poha (thick) fOftunefoods.com Net Weight 500 g a da nr wilrnar
Slide 62: Financial Performance: Consolidated
Financial Performance: Consolidated I I I I I I INR in Crores Q1FY24 Q4FY23 Q1FY23 I I I QoQ % I I I YoY % FY23 FY22 FY21 YoY % Volume (in LMT) 14.9 14.9 11.9 0% 25% 54.7 48.0 44.8 14% Revenue 12,928 13,873 14,724 -7% -12% 58,185 54,155 37,090 7% COGS 11,750 12,433 13,232 -5% -11% 52,183 48,771 32,4
Slide 63: Financial Performance: Standalone
Financial Performance: Standalone I I I INR in Crores Q1FY24 Q4FY23 Q1FY23 QoQ % YoY % FY23 FY22 FY21 YoY % Volume (in LMT) 14.4 14.3 11.4 1% 26% 52.3 46.1 44.6 13% Revenue 12,379 13,122 14,017 -6% -12% 55,262 52,302 37,090 6% COGS 11,265 11,767 12,629 -4% -11% 49,543 47,091 32,490 5% Gross Profit 1
Slide 64: Legal Disclaimer
Legal Disclaimer The information contained in this presentation is provided by Adani Wilmar Limited (together with its subsidiaries, the “Company” or “AWL”) to you solely for your Legal Disclaimer reference and for information purposes only. This presentation is highly confidential and is being give