Reliance to expand FMCG portfolio with new launches and acquisitions

Reliance Consumer Products Ltd, the newly launched FMCG arm of Reliance Retail Ventures Ltd (RRVL), plans to launch brands across categories — like home essentials and home care, food and beverages (F&B), confectionery and personal grooming — besides acquiring legacy brands as they did in Campa and Lotus, said sources in the know. It will also ramp up product manufacturing through tie-ups, besides setting up a pan-India dealer and distributor network in this financial year, said sources.

It has recently expanded its FMCG portfolio with the launch of home and personal care products — Glimmer beauty soaps, Get Real natural soaps, Puric hygiene soaps, Dozo dish wash bars and liquids, HomeGuard toilet and floor cleaners and Enzo laundry detergent powder, liquid and bars. In December, RCPL launched its consumer packaged goods brand, Independence in Gujarat and later it started distributing the products in South Indian markets. Independence has products under categories like staples, processed foods and daily essentials.

RCPL also re-launched the iconic beverage brand, Campa in March. Reliance acquired the brand last year for ₹22 crore. The Campa portfolio initially includes Campa Cola, Campa Lemon and Campa Orange in the sparkling beverage category. "The launch of this brand is in line with the company's strategy to promote homegrown Indian brands that not only have a rich heritage but also boast a deep-rooted connect with Indian consumers due to their unique tastes and flavours," the company said after the launch. RCPL has one more cola brand, Yeah! in its kitty.

RRVL acquired 51% controlling stake in Lotus Chocolate Company for ₹74 crore in last December. It has also announced an open offer to the public shareholders of Lotus for acquiring an additional 26%. The company wants to scale up production and make Lotus products available in markets across India. It has many sub-brands such as Chuckles, On & On, Milky Punch and Tango.

The FMCG firm also announced the acquisition of 50% stake in Sosyo Hajoori Beverages Company (SHBPL), which owns and operates a beverage business under the flagship brand 'Sosyo'. The existing promoters, Hajoori family, will continue to own the remaining stake in SHBPL. Sosyo is also a legacy brand in carbonated soft drinks (CSD) and juices.

In the annual general meeting (AGM) of Reliance Industries last year, Isha Ambani, director, Reliance Retail announced the launch of the company's FMCG business. She said that the company strengthened its own brands presence by launching several new products across categories of staples, home and personal care and general merchandise.

It was initially perceived as an extension of the private label portfolio of Reliance Retail. But Reliance is setting up it as a separate company with a different leadership team. Some of the prominent brands in the private label will be taken to the portfolio of RCPL. Launch of new brands and acquisitions will continue to expand the portfolio, said sources.

RCPL's massive product and market expansion is expected to have an impact on the business of incumbent players in the segment like Hindustan Unilever, Nestle, Britannia, Dabur and Tata Consumer Products Ltd.