Reliance Industries’ fast-moving consumer goods push is gathering pace. New Reliance Consumer Products (New RCPL), the group’s newly carved-out consumer products arm, is reportedly in advanced discussions to acquire a majority stake in Chennai-based Udhaiyams Agro Foods, as per a report by Economic Times. Udhaiyams is a regional staples, snacks and ready-to-cook breakfast mixes maker with an estimated revenue base of about Rs 668 crore, ET reported.
Sources confirmed to financialexpress.com that the deal is on. However, there is no official confirmation or announcement on the deal.
Regional-first play
The transaction, if concluded, is expected to be mid-sized and broadly in line with Reliance’s earlier consumer acquisitions such as Campa soft drinks and Velvette shampoos, one of the people cited in the ET report said. The strategy remains consistent: build scale in strong regional brands first, before expanding them nationally through Reliance’s distribution and retail network.
As per the Economic Times report, Udhaiyams has a strong presence in South Indian markets, where it competes with Tata Consumer Products, iD Fresh Food and Orkla-owned MTR. The Economic Times report detailed out that the promoters are expected to retain minority stakes post-transaction. However, FinancialExpress.com could not independently confirm that news.
Udhaiyams Agro Foods was incorporated as an unlisted private company in July this year under the parent Shri Lakshmi Agro Foods, with Sudhakar and Dinakar as founding directors, the ET report added.
New RCPL takes centre stage
The talks come close on the heels of a corporate restructuring at Reliance Retail, which recently hived off its FMCG portfolio into New RCPL, a direct subsidiary of Reliance Industries. The move is aimed at sharpening focus on the group’s packaged consumer business, which spans beverages such as Campa, Sure water and Spinner sports drinks; foods including Sil jams, Lotus Chocolate and Alan’s Bugles chips; personal care brand Velvette; and beauty platform Tira.
Earlier this month, Reliance informed stock exchanges that it had dissolved the earlier Reliance Consumer Products Ltd, formerly a subsidiary of Reliance Retail, and set up New RCPL under a composite scheme of arrangement effective 1 December.
In a related development, Reliance Consumer has announced a Rs 40,000-crore agreement with the government to establish food manufacturing facilities across India. The Mukesh Ambani-led company reported revenues of over Rs 11,000 crore in FY25.
Shifting trends in India’s consumer sector
According to an Equirus Capital report, India’s consumer sector saw 115 mergers and acquisitions between January and September 2025, the highest in four years. Food and beverages accounted for the largest share of transactions, followed by apparel and accessories. By value, consumer deals totalled over Rs 21,200 crore during the nine months, with 74% of the value coming from the F&B segment, the ET report noted.
Industry growth prospects remain strong. Market researcher IMARC Group estimates that India’s packaged food market will expand to $224.8 billion by 2033 from $121.3 billion in 2024, growing at a compound annual rate of 6.5% between 2025 and 2033, driven by rapid urbanisation, rising demand for convenience foods and the expansion of online food delivery channels.