In stories dated 21 July 2023, several financial print media reported that Adani Wilmar had filed an FIR through its agency against the B2B platform ‘Jumbotail’ for alleged distribution of counterfeit products on the platform. The edible oil major apparently discovered the malpractice during a routine market survey. In a statement, Adani Wilmar said it had filed the police complaint in the Badalpur police station in Gautam Budhnagar district, Uttar Pradesh against the B2B platform.
The edible oil manufacturer said law enforcement authorities conducted a raid at the warehouse of the B2B platform, “Wherein alarming quantities of counterfeit products bearing the ‘Fortune’ brand name – the flagship brand of Adani Wilmar were seized.” The seized products included 126 pet bottles of Fortune Kacchi Ghani Mustard Oil (1-liter pack) without the lid, 37 fake Fortune Refined Soybean Oil (1-liter pouches), and 16 pet bottles of Fortune Sarso Oil (1-liter packs).
The company initiated an in-depth examination of the reported products, revealing significant mismatches in Batch Code details, fake QR codes, and inauthentic packaging materials, confirming product counterfeiting. “We are deeply concerned about counterfeit products circulating in the market and posing risks to consumers’ health,” an Adani Wilmar spokesperson said. Apparently, the company is working with the authorities to quickly identify the sources of the counterfeits, to take action.
Edible oil prices in India have been declining in the past year due to better production of oil seeds and the lower consumer demand in developed economies with the easing of supply in the Black Sea region. Earlier last week, Adani Wilmar stated its FY 23-24 Q1 sales had declined because of the sharp fall in edible oil prices and weaker demand. In the previous quarter also (FY 22-23 Q4) the company stated that there had been a decline in rural edible oil sales, attributing this to lower demand because of price inflation.
Jumbotail assisting in the enquiry against fake edible oil
Apparently, the day after Adani Wilmar filed its FIR against Jumbotail for allegedly distributing counterfeit ‘Fortune’ products, the B2B platform’s spokesperson in a statement, said it has a zero-tolerance policy towards counterfeit products and is offering all assistance to the Adani team. “We continue to offer all assistance to the Adani team to identify the original source of the vendors from whom the products were procured. Jumbotail has a zero-tolerance policy towards counterfeit products and we take strict measures to ensure only original products are sold through our platform.”
Jumbotail’s spokesperson said it had, “Ensured all necessary assistance to Adani Wilmar and the law enforcement authorities,” to trace the original source of the said alleged counterfeit products. “Adani Wilmar contacted us about certain alleged counterfeited products. As soon as we received their communication we checked our systems and proactively shared the stock details available in one of our locations. Based on our information they visited our location to inspect the stocks,” said the spokesperson from Jumbotail.