Mukesh Ambani-led Reliance Industries (RIL) is using its telecom playbook to shake up the fast-moving consumer goods (FMCG) space. While India’s largest private sector company has taken the first few steps to spin off its Rs 11,500-crore FMCG business into a direct subsidiary called New Reliance Consumer Products, the second part of this exercise is the scale that it is eyeing with the move, persons in the know said.
Reliance is aiming to double its FMCG business in two to three years, targeting a general trade reach of around 4-5 million outlets from 1 million stores now, informed sources said. Executives at Reliance Consumer Products (RCPL), the current name of the FMCG business and part of Reliance Retail, were not immediately available for comment. But the spin-off exercise, which began in April, is likely to take at least three to six months to be completed. RIL will hold an 83.56% stake in the new entity and may look to list this business in the coming years.
For Reliance’s FMCG business, which began its journey following incorporation of RCPL in November 2022, growth has happened at break-neck speed over the last two years, sector experts said. It is already bigger than Marico and Emami and is nearly as big as Dabur. It has also surpassed Tata Consumer’s India business, based on FY25 financial numbers. While Marico closed FY25 with a consolidated topline of Rs 10,831 crore, Emami’s turnover for the period was Rs 3,877 crore.
Dabur’s consolidated topline stood at Rs 12,563 crore and Tata Consumer’s India business posted revenue of Rs 11,241 crore in FY25. Reliance’s FMCG business, however, lags majors such as Hindustan Unilever, Nestle India, Procter & Gamble India and Britannia, though it is within striking distance of Godrej Consumer Products, whose FY25 topline stood at Rs 14,364 crore, experts tracking the market said.
At a broader level, Reliance plans to take on the big boys in FMCG by using a three-pronged strategy. This includes pushing its portfolio of around 15 acquired and organic brands in phases across markets, ensuring price points are affordable and tapping regional flavours, taste profiles and needs. The aim is to fulfil RIL chairman Ambani’s vision of offering global quality products at Indian prices, informed sources said.
RCPL brands such as Campa, which was relaunched in March 2023, is already available in 15-20 variants, ranging from cola to nectar, glucose-based, energy and sports drinks. Campa and Independence (in-house staples and grocery products launched in January 2023) are available in select markets in the south, west, north, east and central regions. Other products include jam and sauce brand SIL, regional beverage brand Sosyo, confectionary brand Ravalgaon and shampoo brand Velvette, all of which were acquired in the last two years.
Sources say that the company is working on several pilot projects in biscuits, snacks, and home care items among other product categories for rollout in the coming months. The company has also formed alliances with global brands such as Alan’s Bugles, Sri Lanka’s Maliban Biscuits and has partnered with former Sri Lankan cricketer Muttiah Muralitharan to co-create, manufacture and sell Spinner sports drinks at Rs 10 for 250 ml bottles, less than half the price of rivals such as PepsiCo-owned Gatorade and Sting.