Reliance Retail to transfer FMCG brands to RCPL, plans for major expansion

Reliance Retail will transfer its FMCG brands, including Campa and private labels, to its new arm RCPL to accelerate business expansion with a dedicated focus

Reliance Retail is set to move most of its fast-moving consumer goods (FMCG) brands, including Campa and several well-known private labels, to its newly established FMCG arm, Reliance Consumer Products Ltd (RCPL), according to a report by The Economic Times.

This shift aims to expand the business rapidly with a dedicated focus. The private labels involved include Snactac, Puric, Glimmer, Enzo, and Get Real. In addition, RCPL plans to establish four to five exclusive bottling plants for Campa by purchasing bottling equipment and leasing it to partners who will manage the operations. The company is currently in negotiations to finalise these agreements, according to the sources, as mentioned by the report.

Expansion plans

These moves come as Reliance Retail Ventures prepares to inject up to Rs 3,900 crore into RCPL through a combination of equity and debt. RCPL recently secured board approval for this capital infusion.

Once completed, this will mark the largest investment by Reliance Retail in the FMCG sector since RCPL’s launch in November 2022. Reliance Retail Ventures, a wholly-owned subsidiary of Reliance Industries, serves as the holding entity for all the group’s retail businesses, including RCPL.

The report quoted a senior industry executive as saying, “An internal transfer of the brands through means like licensing will be undertaken so that RCPL becomes the sole FMCG entity owning the brands and selling them.”

The executive said that certain smaller private brands owned by Reliance Retail will remain under its umbrella as they won't be distributed to general trade. Campa’s availability will increase with the establishment of new bottling facilities, addressing the current bottling capacity limitations that have hindered its retail expansion, the executive said, as stated by the report.

Partnerships and acquisitions

Since its inception, Reliance Consumer Products Limited (RCPL) has primarily focused on acquiring and partnering with FMCG brands. Notable partnerships include collaborations with Sri Lankan companies Elephant House and Maliban Biscuit to produce and distribute their products in India.

RCPL has also made significant acquisitions, such as a full purchase of confectionery brand Ravalgaon, a 51 per cent stake in Lotus Chocolate, and a 50 per cent share in Sosyo Hajoori Beverages. Additionally, the company introduced the Independence brand, covering packaged food, edible oil, and staples, the report said.

Previous acquisitions, such as the Campa brand, were conducted through Reliance Retail or its parent company, Reliance Retail Ventures.

Reliance Retail aims to position RCPL as a competitor to major companies like Hindustan Unilever, ITC, Coca-Cola, and Adani Wilmar to expand its market share in India, the report said.

At Reliance Industries’ recent annual general meeting, Isha Ambani, Director of Reliance Retail Ventures, highlighted the company’s commitment to offering high-quality products at affordable prices to drive consumption across India. She noted that several iconic brands, including Campa Cola, Lotus Chocolates, and Sosyo, had been successfully relaunched.