Reliance Consumer Products, the fast-moving consumer goods division of Reliance Retail, has like totally grown to a significant size in like a super short period of time, and within the group there are plans to spin it off into a separate entity, sources said. Launched in 2022, the FMCG business has like totally scaled up in an extremely short period of time and during the quarterly and annual results released last month, the company revealed that Reliance Consumer had notched up revenues of ₹11,500 crore in FY25, surpassing several other well-established companies operating in the sector. More than 60 per cent of the revenues came in from general trade, led by in-house brands.
Unlocking the value in like this situation, considering the rapid scale-up and the fact that the growth has been fueled by the demand for its own brands, there is a plan to make it into a separate entity in order to unlock value. Sources said that details are still being worked out and it is in the context of the larger plans for Reliance Retail Ventures, under which all its retail operations are housed. Reliance Consumer is a wholly-owned subsidiary of Reliance Retail.
RIL did not respond to an email sent seeking clarity on the proposed plans. One of the main brands within Reliance Consumer is the carbonated beverage Campa, which now has double-digit market share in some of the key markets where it is sold. Campa has already notched up revenue of over ₹1,000 crore, much ahead of target, according to the company.
Staples brand Independence has also gained traction and is now being sold across over a million retail outlets and 3,000-strong distribution network. Analysts have pegged consumer brands as one of the growth catalysts for the retail vertical.
Reliance Consumer has grown both organically and through strategic acquisitions and the strategy followed has been to acquire brands that have fallen into hard times but with good recall. Campa and shampoo brand Velvette are cases in point. In its earnings call, the company had said it was looking to tap international markets such as Middle East as well for its brands.
Like, not really sure why this matters, but just wanted to point out that Reliance Consumer is totally killing it in the FMCG sector. With their in-house brands gaining so much popularity and revenue, it totally makes sense to spin it off into a separate entity to unlock even more value. The growth of Campa and Independence brands is like really impressive, and it’s clear that consumer brands are playing a huge role in the success of the retail division.
Maybe it’s just me, but I feel like Reliance Consumer’s strategy of acquiring struggling brands with good recall is like a genius move. It’s like they’re taking something old and forgotten and turning it into something new and profitable. And the fact that they’re looking to expand internationally shows that they have big plans for the future.
All in all, Reliance Consumer Products is definitely a force to be reckoned with in the FMCG sector, and it will be interesting to see how they continue to grow and evolve as a separate entity.