Reliance Consumer Products (RCPL) has revived SIL with Rs 5 noodle packs and Rs 1 ketchup sachets among other things, signalling how the conglomerate intends to negotiate one of India’s most crowded, low-margin consumer markets. With the help of a familiar brand name, it is trying to jump entry barriers through price betting that scale will do what advertising alone cannot — that is, turn trial into habit.
For Reliance, competitive pridcing is not simply a short-term penetration tactic. Megha Raturi, head of marketing at RCPL, frames it as structural rather than promotional. “SIL’s product and pricing strategy has been developed on the strong foundation of RCPL’s core philosophy — to deliver ‘global quality at affordable prices’,” she says, adding that as a flagship brand, the pricing is backed by ongoing investments in supply chain efficiencies to sustain affordability at scale.
Legacy name, considerable recall
That confidence is rooted in how Reliance has chosen to enter the category. Instead of building a new brand from scratch, the company has leaned on a legacy name with considerable recall — particularly outside metros — while giving it a contemporary makeover. Raturi says the reintroduction of SIL marks RCPL’s formal entry into packaged foods, with plans to scale it into “a one stop solution for consumers’ packaged foods needs,” expanding across consumption occasions while retaining its heritage appeal.
Besides instant noodles and ketchup, the 75-year-old food brand’s portfolio spans jams, sauces and spreads. The pricing is clearly designed to undercut incumbents and accelerate first-time use, particularly in value-driven households and smaller towns.
Mukul Goyal, co-founder of Stratefix Consulting, argues that reviving SIL helps Reliance bypass the high costs and long gestation periods associated with new FMCG brands. New brands often struggle to cross 30% trial rates without hundreds of crores in marketing spends. A familiar name, he adds, allows Reliance to price aggressively without triggering quality skepticism– much like its earlier Campa playbook.
Packing a punch
While pricing is the entry strategy, Reliance’s integrated manufacturing, backward-linked supply chains and retail ecosystem fundamentally alter the economics of competing in low-margin food categories, says Goyal, allowing the company to operate sustainably at margins that would be uncomfortable for traditional FMCG players. With a nationwide retail footprint and deep general trade reach, distribution costs are structurally lower, an advantage that can be passed on as price or retained as margin.
That said, competition is intense. The sauces, dressings and condiments sector was valued at approximately Rs 39,000 crore last year, projected to double by 2030. In the Rs 5 lakh crore instant noodles market, Nestlé’s Maggi controls an estimated 55-60% share, with ITC’s Sunfeast Yippee at around 15-20% and Nissin Top Ramen holding 7-10%, alongside growing regional brands such as Wai Wai and newer Korean-style noodle entrants. The jams segment is similarly concentrated, led by Kissan of Hindustan Unilever with close to 60% share. In sauces, competition is anchored by Maggi at about 40% and Kissan at roughly 26%, in a market where tomato ketchup alone accounts for nearly 60%, even as newer players such as Veeba and Fun Foods continue to gain share.
Converting younger consumers, who are less influenced by nostalgia and are driven by transparency and peer validation is a big challenge. Given that, nostalgia should function as a trust bridge for older buyers, not the core narrative for Gen Z, say experts.
In other words, it is not going to be a cakewalk for SIL. And prise alone can take it only thus far. In any case, aggressive pricing is a double-edged sword, says Ambika Sharma, founder and chief strategist at Pulp Strategy. “The risk is that without strong cues of quality, consistency, and availability, the brand slips into the low-cost bucket rather than smart value,” she says, noting that the distinction will be determined by everyday product experience, pack design and reliability, not price alone.
RCPL is keen to stress that SIL’s growth will not be limited to captive shelves. Right from the outset, the company has been focused on building a national distribution network with a strong emphasis on general trade and kirana stores, which the comapny describes as “the backbone of India’s vast consumer market”. Tier-2 and tier-3 towns, Goyal adds, are central to the strategy, driven by rising incomes, changing food habits and growing packaged food adoption. The aim is to make SIL widely available across kiranas, modern trade and e-commerce, positioning it as a truly national brand.
Still, India’s Rs 9.5 lakh crore packaged foods market has seen many price-led launches struggle to convert early trials into long-term consumption. Avinash Chandani, partner at Deloitte India, notes that while aggressive entry pricing has historically been effective in accelerating adoption and lowering perceived risk, especially in mass categories, affordability alone rarely sustains loyalty. “Pricing emerges as a powerful entry lever, but its role in driving enduring consumption remains closely tied to execution beyond price alone,” he says, pointing to taste, trust, availability and emotional connection as decisive factors over time.