Adani Wilmar sees revenue rising 33% from year ago in FY11

MUMBAI (makemystocks): Adani Wilmar Ltd, a joint venture between India's Adani Group Ltd (BOM:512599) and Singapore-based Wilmar International, expects its revenues to grow 33% from a year ago in 2010-11 (Apr-Mar), Managing Director Pranav Adani said on Thursday.

In 2009-10, Adani Wilmar's revenues were Rs 62 billion, he said.

Adani Wilmar claims food cooked in this oil absorbs 17% less oil than that cooked in other refined oils and so is healthier than other brands.

Fortune Plus will be available in sunflower and soybean variants and will be priced Rs 4-5 more than other Fortune cooking oils.

Adani expects Fortune Plus to contribute 10% to the company's total sales in two years.

Meanwhile, Adani Wilmar is likely to review product prices by October end as cost of raw materials, mainly edible oil, has gone up in recent months.

"At the end of the day, if the input cost is high then it is eventually passed on to the consumer...We haven't hiked prices but might have to, maybe after a month...The cost increase is on account of increase in edible oil prices. Edible oil (price) has gone up around 10% over the last one month," Adani said.

The company has planned capital expenditure of around Rs 10 billion for 2011-12 and 2012-13.

"Last year, we had capital expenditure of Rs 10 billion to increase our capacity...For the next two years, our capital expenditure could be about the same," Adani said.

The company will fund its capital expenditure via internal accruals and debt, he said.

Adani Wilmar currently has oil refining capacity of 9,000 tonne a day.

Its seed crushing capacity is 6,000 tonne a day.

The company has no plans to add any more capacity for now, the managing director said.

Currently, Adani Wilmar has 17% share of the cooking oil market and is a market leader in soybean oil with share of 32%, he said.

The Adani Enterprises shares were trading down by 0.17 per cent from the previous close, on the Bombay Stock Exchange (BSE).