In response to the news, shares of Adani Wilmer (AWL) rose 2.7% to an intraday high of ₹ 592 on the BSE. Similarly, Patanjali Ayurveda-owned Ruchi Soar shares rose 1.3% to ₹ 1,058 on the BSE. Stock prices of other edible oil companies like Manorama Industries, Gokul Agro, Marico, Ajanta Soar also rose by 2% on the BSE.
Adani Wilmer and Ruchi Soya are the biggest players in the branded oil business, contributing 12% and 6% to the total 22MT oil consumption in India, respectively. The combined share of the top six players in the branded oil business (Adani Wilmer, Ruchi Soya, Emami, Cargill, Bunge and Marico) is estimated at around 40% in FY20.
Last month, Adani Wilmer, Mother Dairy, and other edible oil producers cut edible oil prices by up to ₹ 15 to benefit consumers after government efforts to reduce import duties on products. While Adani Wilmer, the country’s largest edible oil producer, has slashed edible oil prices by ₹ 10, a Delhi-NCR co-operative, Mother Dairy, which sells edible oil under the ‘Dhara’ brand, has slashed its cooking prices. Oil up to ₹ 15 per liter.