The fast-moving consumer goods (FMCG) arm of Reliance, which has touched Rs 8,000 crore in topline for the first nine months of FY25, will expand distribution into the north and west of India, sources have told FE. The FMCG business is part of Reliance Consumer Products (RCPL), a wholly-owned subsidiary of Reliance Retail Ventures (RRVL).
Key RCPL brands include Campa and Independence, which are projected to touch Rs 1,000 crore by the end of FY25, RRVL disclosed on Thursday. The Rs 1,000-crore milestone for Campa will come within two years of its launch in March 2023. Independence, on the other hand, was first rolled out in Gujarat in December 2022 and then expanded to additional markets in 2023.
The expansion by RCPL into the north and west of the country will see greater penetration into markets such as Delhi-NCR as well as states such as Uttar Pradesh, Punjab, Haryana and Rajasthan, persons in the know said. The aim is to reach about a million outlets in a year, sources said, from about half a million outlets now, which are mainly in the south.
The distribution push is also timed with the overall momentum the FMCG business is seeing, sources said, as it seeks to become a leading player in the market. RCPL saw an almost 300% year-on-year growth in its network of distributors and merchant outlets in the December quarter, led by growth across categories, it said on Thursday.
Key markets currently serviced by RCPL include Tamil Nadu, Andhra Pradesh, Telangana, Karnataka and some parts of Maharashtra and Gujarat. RCPL executives were not immediately available for comment.
RCPL, sources said, has been driving both affordability and penetration via its products, with a substantial portion of its sales, estimated at about 40%, coming from price points such as Rs 10, Rs 20 and Rs 30.
In beverages, for instance, Campa has disrupted the carbonated drinks market, offering a 200ml Campa pack at half the price (Rs 10) offered by rivals (Rs 20 for a 200ml pack). The initiative has forced players such as Pepsi and Coca-Cola to increase trade margins and cut prices to stay competitive.
In an earnings’ call on Thursday, RRVL’s chief financial officer Dinesh Taluja said that Campa had an over 10% market share in sparkling beverages in select markets, with the brand continuing to see traction among consumers.
Last week, RCPL entered the hydration space with Raskik Gluco Energy. The foray will see RCPL take on players such as Tata Consumer Products, which has Tata Gluco Plus and Dabur, which recently launched Dabur GlucoPlus-C priced at Rs 10 for a 160-ml PET bottle in select markets.
Raskik was acquired by RCPL in 2023 from entrepreneur Vikas Chawla, who was the former MD of Coca-Cola in South East Europe.
RCPL is re-positioning Raskik as a master brand for juices and functional beverages. Apart from a Rs 10 pack, Raskik will also be available in 750 ml bottles to be launched soon, the company said.