Reliance Consumer Products Ltd (RCPL), the FMCG arm of Reliance Retail Ventures, is planning to invest up to Rs 8,000 crore on capacity expansion of Campa and other beverage brands in its portfolio, stated a report by Economic Times citing people aware of the development. The investment, it added, will pan out over a period of 12-15 months.
The Mukesh Ambani-owned company has plans to use the massive capital outlay to fund the construction of 10 to 12 new facilities, including greenfield plants and co-packing units. The proposed capex investment is the largest yet by RCPL.
The expansion plan is aimed at ramping up its challenge not only against rivals Coca-Cola and PepsiCo, but also against dozens of low-priced regional brands across the country, one of the executives told the publication.
The capital infusion is expected to support Reliance’s ambition to become a serious contender in the country’s Rs 1.6 trillion soft drink market. The Indian market is currently dominated by global giants Coca-Cola and PepsiCo.
Reliance currently operates 18 beverage plants, all through joint ventures.
Reliance is pursuing a value-driven pricing strategy, offering products at 20 per cent to 40 per cent below competitors’ rates to appeal to cost-conscious consumers, especially in Tier II and Tier III cities. The company has set a bold target of achieving nationwide availability for its entire product portfolio by March 2027, with its beverage segment alone expected to cover 70 per cent of the market by March 2026.
Shares of Reliance Industries were up 0.36 per cent at 10:55 am today at a trading price of Rs 1,435.05.