Adani Wilmar sees good year for oilseeds

With an above normal monsoon pushing up sowing of groundnut and other oilseeds, Adani Wilmar Ltd plans to raise its capacity utilisation, to increase its market share of 19.5 per cent in the refined oil consumer pack market.  

After being affected by a weak monsoon for two years, it is expecting an overall industry increase of 2.5 million tonnes in oilseed production, with higher sowing, which should push refined oil production. With the allied revival in rural demand, consumption should be rising by 7.5 to eight per cent this year, says Anghshu Mallick, operations head.

According to government data, as on August 5, the area sown was 16.75 million hectares, higher by six per cent from the 15.76 mn ha in the corresponding period last year.  Sowing of soyabean has gone up from 11 mn ha to 11.18 mn ha; groundnut has covered 4.09 mn ha as against 3.12 mn ha; sunflower has increased 116 per cent to 135,000 ha, from 62,000 ha last year at this time.

“If the domestic crop increases, there will be more availability of oil, leading to better prices and higher consumption. It is good for all players,” said Mallick.

The company also expects to improve plant performance. It also hopes to tap the growing opportunity in Indian consumers adopting value-added edible oils.

"Indians are becoming more and more health conscious. They are now ready to accept functional products. There is great opportunity for value addition in edible oil. Apart from fortification with vitamins, we have introduced a very healthy Diabetes Care oil," said Mallick. Taste continues to be a dominant factor, he said, but demand for organic foods, oats and brown rice is increasing.