The Adani Group has announced its complete exit from Adani Wilmar its FMCG joint venture. The group will sell its 31.06% stake in Adani Wilmar Limited (AWL) to its partner Wilmar International while the remaining 13% stake will be sold through the open market. Adani Wilmar India’s largest edible oil company is now set to chart its independent growth path. Wilmar has revealed its future business strategy focusing on expanding its high-margin FMCG segment. According to IndiaTV report Wilmar plans to adopt a strategy similar to ITC’s leveraging its core business and extensive distribution network to boost its FMCG growth. ITC used its robust cigarette business as a foundation for its FMCG expansion and AWL is preparing to use its flagship edible oil business in a similar way. Plans For Global FMCG Brands With the Adani Group stepping away Wilmar is reportedly planning to introduce more global FMCG brands to the Indian market. During the December quarter AWLs FMCG segment showed significant growth with a 24% year-on-year increase in volume. The share of food and FMCG products in total sales volume rose to 20% while their contribution to total revenue grew to 9%. Challenges In FMCG Sector Despite the positive outlook for growth the FMCG sector faces challenges due to surging inflation high production costs and intense price competition. Industry experts anticipate a decline in profits for FMCG companies during the October-December quarter. Operating profits are also expected to remain flat or see minimal growth. Many companies in the sector have experienced single-digit revenue growth partly due to increased costs of products like copra vegetable oil and palm oil. These rising costs have led to price hikes during a period of high food inflation which has impacted urban consumption. As Wilmar takes full control of AWL the company appears set to navigate these challenges by focusing on innovation strategic expansion and leveraging its strengths to capture a larger share of the Indian FMCG market. (With inputs from PTI)