Reliance Industries’ consumer products division has acquired a majority stake in Tamil-Nadu-based food company Udhaiyams Agro via a joint venture agreement, it said on Friday. While the company did not disclose the deal size, the transaction is valued at Rs 668 crore, sources in the know said. Udhaiyams Agro is best-known for the Udhaiyam nutrition brand, which is expected to strengthen Reliance Consumer’s presence in branded pulses.
Udhaiyams Agro, which produces snacks, ready-to-cook and ready-to-eat breakfast mixes, competes with the likes Tata Consumer Products, iD Fresh Foods, and MTR in regional markets. Promoters S. Sudhakar and S. Dinkar will hold a minority stake in the firm after completing the transaction with Reliance, sources said.
Strengthening branded staples and RTC Portfolio
The latest acquisition by Reliance is part of a broader strategy to pick up heritage brands and revive them. This began with brands such as Campa in beverages and extended into other areas such as confectionary (Ravalgaon), food (SIL), personal care (Velvet) etc.
Scaling Regional Heritage Brands Nationally
Reliance Retail recently transferred its FMCG business to New RCPL, a newly formed direct subsidiary of Reliance Industries. This was done to increase the parent’s focus on its packaged consumer business, which includes beverages under Campa, Sure Water and Spinner sports drinks, food brands Sil Jam, Lotus Chocolate, and Velvet Personal Care, Tiara Beauty and the Independence range of staple products.
