AWL Agri Business reported mid-single-digit volume growth in the first quarter of FY27, as robust demand for rice and packaged foods, along with continued expansion in alternate sales channels and Industry Essentials, helped offset subdued volumes in its core edible oil business.
The edible oil and food products company said revenue from its Food and FMCG portfolio rose by more than 20 per cent year on year, with volumes increasing over 17 per cent. In contrast, edible oil volumes remained broadly flat as distributors and trade partners maintained cautious inventory levels amid geopolitical uncertainty, although the segment recorded 13 per cent revenue growth.
“During the quarter, the company delivered mid-single-digit volume growth. The quarter was supported by momentum in the Food & FMCG portfolio, sustained outperformance in Alternate Channels and healthy growth in Industry Essentials,” the company said.
Rice Leads Food Growth
The Food and FMCG business continued to outpace the company's traditional edible oil operations during the quarter, underlining AWL's ongoing diversification into branded packaged foods.
Rice emerged as the fastest-growing category, recording more than 40 per cent year-on-year growth. Wheat flour extended its recovery, while categories including pulses, besan, soya nuggets, sugar, poha and personal care products collectively registered around 25 per cent growth over the year-ago period.
The company also strengthened its food portfolio by adding the Madhur brand under a licensing arrangement during the quarter.
The Industry Essentials segment reported 14 per cent volume growth and 30 per cent revenue growth, supported by robust demand for oleochemicals and speciality chemicals, which posted high-teen volume growth. Castor derivatives and de-oiled cakes also contributed to the segment's performance.
“The company continues to strengthen its multi-category Food portfolio through focused investments in brand building, distribution expansion, premiumization and product innovation,” it said.
AWL said premium offerings such as Fortune Sharbati Atta, Multi Grain Atta, Premio Olive Oils and Cold Pressed Oils continued to receive strong consumer response. The company's health and convenience portfolio, including ready-to-cook biryani kits, brown rice and healthier edible oils, also remained an important growth driver.
Quick Commerce Expands Reach
Alternate channels comprising ecommerce, quick commerce and modern trade grew 27 per cent year on year, with quick commerce continuing to deliver strong double-digit growth. On a trailing 12-month basis, revenue from alternate channels has reached around Rs 5,600 crore.
“On a Trailing Twelve Month (TTM) basis, Alternate Channels have now scaled to approximately Rs 5,600 crore of revenue. Across several Food categories, including Wheat Flour and Rice, the company continues to hold double-digit market shares across major Ecommerce and Quick Commerce platforms,” the company said.
The company also reported strong momentum in other businesses. Branded exports surged 87 per cent year on year, while its hotel, restaurant and catering (HoReCa) business grew 31 per cent. AWL expanded its direct retail footprint to around 9.7 lakh outlets during the quarter, adding more than one lakh outlets compared with the corresponding period last year.
Its subsidiaries also posted healthy growth.
“The company's subsidiaries continued to deliver healthy growth during the quarter. GD Foods, which operates the Tops brand, delivered 20 per cent+ YoY revenue growth, with underlying volume growth of 19 per cent. Omkar Chemicals also recorded 18 per cent YoY revenue growth,” it added. |
