Reliance Industries to launch new FMCG subsidiary
Reliance restructures its consumer business, aiming for scale, investor appeal, and aggressive manufacturing expansion across India.
INDIA – Reliance Industries is set to establish a new subsidiary, New Reliance Consumer Products, to consolidate and operate all its fast-moving consumer goods (FMCG) brands.
The move aims to provide specialized focus and attract distinct investor interest, according to reports by India’s Economic Times and Reuters.
The restructuring plan involves spinning off the company’s consumer-facing brands from its current retail division to create a standalone entity with clearer visibility and strategic direction.
The National Company Law Tribunal has reportedly approved the proposal, facilitating the transition.
“This is a large business by itself requiring specialised and focused attention, expertise and different skill sets as compared to retail business,” Reliance Industries stated in its request for regulatory approval, as quoted by Reuters.
The company emphasized the need for continued capital investment and a dedicated management structure for its growing FMCG portfolio.
Reliance Industries will retain an 83.56% stake in the newly formed entity. The remaining shareholding structure has yet to be detailed. The goal of the spin-off is to build scale and market dominance for the consumer brands by early 2027, according to Economic Times.
Reliance’s consumer brands portfolio includes Campa Cola, which competes with global beverage giants Coca-Cola and PepsiCo, along with a growing selection of snacks and confectionery products rivaling international brands like Mondelez.
In 2023, the company expanded its confectionery portfolio by acquiring majority stakes in Lotus Chocolate Company, adding Chuckles, On & On, Milky Punch, and Tango to its roster.
It also took over The Ravalgaon Sugar Farm, inheriting iconic Indian sweets brands such as Pan Pasand Gold, Tutty Fruit, Mango Mood, and Choco Cream.
Last month, Reliance Consumer Products Ltd announced a planned investment of Rs 6,000 crore to Rs 8,000 crore (US$691.4M to US$921.9M) over the next 12 to 15 months.
The funds will be directed toward expanding the company’s beverage manufacturing capabilities across India.
This expansion includes the development of 10 to 12 new facilities, encompassing greenfield manufacturing plants and co-packing units.
The initiative marks the company’s most significant step in scaling up its consumer products segment, as it eyes national growth and greater market penetration.
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