RS Sodhi, former managing director of the Gujarat Co-operative Milk Marketing Federation (GCMMF), which owns Amul, has been roped in by Reliance Retail Ventures in an advisory capacity to help strengthen the latter’s farm-to-fork operations, executives in the know said.
Sodhi will focus on the company’s fruits and vegetables supply chain, where the need for fresh produce is high, working with farmers closely to ensure timely supplies as well as make sure the produce meets quality standards. When contacted, Sodhi and Reliance declined comment.
Sodhi’s appointment comes at a time when Reliance Retail Ventures, owned by Reliance Industries (RIL), has stepped into the fast-moving consumer goods (FMCG) market with a wholly-owned subsidiary, Reliance Consumer Products, in November. Reliance Retail Ventures is also the holding company of Reliance Retail, the country’s largest organised retailer.
During RIL’s annual general meeting in August last year, the company had indicated that it planned to enter every FMCG product category with an equal focus on backend sourcing. The company has taken the first few steps in this direction, acquiring Campa Cola and then relaunching the brand in the market last month.
Reliance Consumer Products has also rolled out its packaged goods brand called ‘Independence’, starting with Gujarat. It has also acquired majority stakes in FMCG firms such as Lotus Chocolate Company and Sosyo Hajoori Beverages, and is speaking to a bunch of other brands in foods and non-foods segments.
Sodhi is expected to leverage his experience and skillset in Gujarat, a market he understands well, persons in the know said, which is the starting point for brands such as Independence. The latter will be selling products ranging from staples to processed foods first in Gujarat, before stepping into other markets.
In August last year, Isha Ambani, who leads Reliance’s retail business, had indicated that she intended to scale up the FMCG vertical quickly, as the group sought to expand its presence in the market, led by multinationals such as Hindustan Unilever and Nestle, among others.
On the retail side, the group clocked a growth of 17% in revenue from operations for the quarter ended December 31, 2022, versus the previous year, to Rs 67,634 crore, with a net profit of Rs 2,400 crore, a growth of 6.2% against last year. The company said it had recorded its highest-ever footfall at 201 million across formats and geographies during the December quarter, registering a growth of 25% against the previous year.
The numbers reported were in line with analyst expectations. The Street had forecast Reliance Retail to continue its strong growth show with an improvement in footfall during the festive season. While analysts expect the retail and FMCG business of Reliance to be listed on the bourses in the future, RIL has given no timeline for the same.