Reliance Consumer Products (RCPL), a Reliance Retail subsidiary in the fast-moving consumer goods (FMCG) space, is planning a big brand push in general and modern trade, as it looks to scale up operations across the country.
The move is timed with the broader objective of driving momentum in the FMCG business as it seeks to become a key player in the market, competing with national rivals, something Reliance has successfully done in businesses such as telecom with Jio.
The FMCG plan includes taking in-house brands, which are available on Reliance Retail shelves, such as Goodlife, Snactac, Desi Kitchen and MyHome, to general trade. Campa and Independence, which were launched by RCPL in general trade last year, will be made available to consumers in Reliance Retail supermarkets, persons in the know said.
“The strategy is two-fold,” a source said. “Give access to consumers to own brands through general trade, which is going inside out. The second part is to take some of the brands in traditional trade to Reliance’s supermarkets, which is going outside in. The aim is to maximise reach and offer quality products at affordable prices,” the executive added.
The affordable pricing strategy is playing out in beverages and staples, for instance. Campa price points are almost 50% lower than rivals within carbonated beverages. The pricing of Independence, which is into packaged foods and staple items, is almost 30% lower than competitors in general trade, said distributors.
RCPL is also ramping up manufacturing and distribution of confectionery brand Ravalgaon, biscuit brand Maliban, detergent powders, bars and liquids under Enzo as part of its strategy to have a wider presence in general trade. Campa and Independence are already available in states such Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Gujarat, West Bengal, Odisha and parts of the north.
RCPL is also increasing its outlet reach within general trade from 1 million now to about 1.5-2 million over the next 6-8 months, mainly in existing states, sources said. Markets such as Maharashtra, Kerala, Madhya Pradesh, Himachal Pradesh, Uttarakhand and Assam, which are key FMCG consumption centres, are part of the next phase of growth for the company, they said.
In the next five years, RCPL plans to increase its merchant base to 10 million, which is over 80% of the country’s kirana store base of 12 million, with a slew of affordable FMCG products, sources said.
On the manufacturing front, RCPL is looking to set up at least 3-4 bottling units to complement its existing network of about 7-8 external bottlers on Campa. As far as Independence and private brands are concerned, the company will continue to work with co-packers for now, executives in the know said. Reliance Retail is also transferring all consumer brands to RCPL to ensure dedicated focus and will support the distribution and manufacturing push with sustained investments, sources added.
An email sent to RCPL elicited no response till the time of going to press. Reliance, said experts, is hoping to become an FMCG player of scale within a short span of time versus incumbents who’ve taken decades to achieve their current position.
Hindustan Unilever (HUL), which is the country’s largest consumer goods company, for instance, reaches over 9 million outlets and has been in India for over nine decades. Nestle reaches around 5.1 million outlets and has been in the country for over a century. Dabur reaches over 7 million outlets, according to its FY24 annual report.