Mint Chennai

Why Reliance is betting on legacy regional FMCG brands

- Vaeshnavi Kasthuril k.vaeshnavi@livemint.com BENGALURU livemint.com. Business · Retail · Consumer Goods · Industries · Mukesh Ambani · India · Unilever NV · Madras · Tamil Nadu · New Delhi · ITC Limited · Consulting · Reliance Industries Limited · Hindustan Unilever · Gurgaon · Reliance Retail

While many consumer goods companies are acquiring direct-to-consumer (D2C) startups, Reliance Consumer Products Ltd (RCPL) is pursuing a different playbook.

The consumer arm of billionair­e Mukesh Ambani’s Reliance Industries has been steadily buying regional legacy brands with strong local recall. By plugging these brands into Reliance’s vast retail and distributi­on ecosystem, the firm hopes to accelerate its ambition of becoming an FMCG (fast-moving consumer goods) powerhouse.

During the December quarter, RCPL’S overall gross revenue stood at ₹5,065 crore, up 60% year-on-year, according to an earnings statement from Reliance Industries.

India’s FMCG sector remains dominated by establishe­d players such as Hindustan Unilever Ltd, which reported revenue of about ₹64,138 crore in Fy25—highlighti­ng the scale of the opportunit­y

Reliance is targeting as it builds its consumer business.

“What Reliance is doing is cobbling together a portfolio of brands that already have some momentum,” said Arvind Singhal, chairman of The Knowledge Company, a Gurugram-based management consulting firm.

Mint explains the strategy behind Reliance’s push to acquire regional brands and how it differs from rivals. Which regional brands has Reliance acquired?

Over the past few years, RCPL has assembled a portfo

lio of regional brands across food, beverages and personal care.

One of its latest additions is Chennai-based Southern Health Foods Pvt. Ltd, which sells millet-based foods, health mixes and baby nutrition products under the Manna brand.

Earlier, RCPL bought a majority stake in Udhaiyam Agro Foods Pvt. Ltd, a Tamil Nadu-based staples brand known for pulses, flours, spices and ready-to-cook mixes.

Reliance has also acquired Delhi-based SIL, a legacy condiments maker known for jams, sauces and cooking pastes, as well as Velvette, the historic personal care label that pioneered shampoo sachets in India in the 1980s.

In beverages, RCPL revived Campa Cola, acquired from the Pure Drinks Group, in the carbonated drinks segment.

What do regional brands gain from partnering with Reliance?

Regional brands that partner with or are acquired by Reliance gain access to scale that is often difficult to achieve independen­tly.

Many local brands enjoy strong loyalty in their home

markets but face constraint­s such as limited capital, weaker supply chains and restricted distributi­on networks.

Under the Reliance umbrella, these brands gain access to the group’s nationwide retail and distributi­on ecosystem, which includes millions of kirana stores as well as large-format retail chains operated by Reliance Retail. This enables them to expand beyond their regional stronghold­s far faster than they could independen­tly.

Why is Reliance pursuing this strategy?

For RCPL, acquiring regional brands offers a faster and potentiall­y less risky way to expand in India’s vast FMCG market. The strategy also allows Reliance to quickly build a diverse portfolio across staples, beverages and personal care—strengthen­ing its ability to compete with establishe­d FMCG giants such as Hindustan Unilever and ITC. How are rival FMCG companies expanding instead?

Most traditiona­l FMCG companies are pursuing a different strategy by acquiring or investing in digital-first D2C brands.

For an extended version of this story, go to

 ?? MINT ?? The consumer arm of Reliance Industries has been steadily buying regional legacy brands with strong local recall.
MINT The consumer arm of Reliance Industries has been steadily buying regional legacy brands with strong local recall.

Newspapers in English

Newspapers from India