The FMCG arm of Mukesh Ambani-led Reliance Industries Industries, Reliance Consumer Products (RCPL), has acquired a majority stake in Tamil Nadu’s heritage nutrition brand, Udhaiyams Agro Foods.
Under the joint venture agreement, RCPL holds a majority stake, while Udhaiyams’ erstwhile owners hold a minority stake in the company. Udhaiyams, with a strong market presence in Tamil Nadu, competes with Tata Consumer Products, iD Fresh Food and Orkla-owned MTR in South Indian markets.
Udhaiyam promoters to continue with business post acquisition
Following this acquisition, the erstwhile promoters of Udhaiyams Agro Foods —S. Sudhakar and S. Dinakar—will continue to hold a minority stake in the company. With more than 30 years of experience in the staples category and in scaling the packaged pulses business at Udhaiyams, they will continue with the company and support the next phase of growth.
The company in its BSE release said, “This joint venture will bolster RCPL’s efforts to offer ‘global quality at affordable prices’ to millions of consumers across the country.”
Reliance Consumer Products bets big on branded staples
T. Krishnakumar, Director, Reliance Consumer Products, said, “It further strengthens RCPL’s presence in the branded staples space. This initiative also reaffirms our commitment to offering global-quality products to consumers at affordable price points, while promoting India’s legacy.”
S. Sudhakar, Managing Director of Udhaiyams Agro Foods, stated, “we are confident that the goodness of Tamil Nadu and the rich heritage of the land will resonate with consumers across geographies, while adding value to their lives as we increasingly transition towards a healthier lifestyle.”
Udhaiyams Agro Foods, operates under its highly popular flagship brand ‘Udhaiyam’. The brand has established itself in key staple and food product categories, including rice, spices, snacks and idli batter, among others, supported by a wide distribution network.