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The total size of the edible oils market in India was estimated to be 13 million tons (mt) out of which imports amounted to about 4 mt. This made India the largest importer of edible oils in the world. Various edible oils are consumed in the India depending on the regional tastes and preferences. A differential in the duties on oil seed and oils made it favorable to import edible oils instead of oilseeds. Similarly, a differential duty between the refined oil and the raw oil encouraged the import of raw oil in order to support the domestic refineries.

Adani Wilmar Limited (AWL) was a part of the Adani group, which started as a trading company mainly into exports of commodities. The group had recently entered into the infrastructure sector with the building of the Mundra port. The group had formed a joint venture with Wilmar Trading of Singapore to enter into the edible oil business. The company was setting up a re.nery with capacity of 600 tons per day. It planned to sell half of the production as bulk oil and the rest as packed oil. The company viewed supply chain management as one of the important means to get a competitive edge. Approximately 70% of the total logistics cost was accounted for by transportation cost. Some of the key decisions the company faced was the location of the warehouses, mode choice and routing.