 "Mukesh Ambani")
Reliance Industries Ltd (RIL) is finalising negotiations for production agreements with domestic contract manufacturers Dixon Technologies and Mirc Electronics, the parent company of Onida, to expand its new brand Wyzr in the domestic consumer electronics and home appliances market, the Economic Times (ET) reported on Wednesday.
The made-in-India brand was launched in the financial year 2023-24 (FY24) and has introduced a range of coolers. Along with its FY24 financial results on Monday, RIL announced plans to expand to other categories. Mukesh Ambani-led RIL, through Wyzr, aims to challenge the dominance of multinational corporations in the local consumer electronics and home appliances market.
According to ET, the company intends to establish its own manufacturing plants in the medium term once the brand gains traction in the market.
Reliance Retail, the retail arm of the conglomerate, plans to expand the product range to include televisions, washing machines, refrigerators, air conditioners, small appliances, and LED bulbs. The company aims to develop and design these products internally, seeking to establish a homegrown brand in a market predominantly controlled by foreign labels.
Previously, Reliance Retail launched the private label brand Reconnect, with products manufactured by third parties.
Reliance plans to distribute Wyzr products through its Reliance Digital stores, as well as independent retailers, regional retail chains, and online platforms such as Amazon and Flipkart. JioMart Digital (JMD), engaged in B2B distribution of electronic products, will also distribute Wyzr products to other stores.
Wyzr products are expected to be competitively priced compared to established brands such as LG, Samsung, and Whirlpool. While Tata-owned Voltas leads the AC market, closely followed by MNCs like LG and Daikin.
Reliance's previous success in disrupting the feature phone market with the JioPhone has inspired its approach in the electronics sector, aiming to capitalise on the government’s Make in India domestic manufacturing initiative, ET noted.
Reliance Retail had previously attempted to sell televisions and appliances under the Reconnect brand but faced limited success as these were designed and manufactured by partners. The company still employs the Reconnect brand for accessories. Additionally, it holds the license for BPL and Kelvinator brands but hasn't gained significant market share with these products. Recognising the need for greater control over product design and manufacturing, Reliance is pursuing its own brand strategy.
During the earnings call, Reliance Retail chief executive Dinesh Taluja highlighted the scaling up of Reliance's FMCG business, noting strong traction and customer acceptance for brands like Campa and Independence in the beverages and staples segments, respectively. He emphasized the establishment of a localised supply chain to support these businesses' expansion across different regions of the country.
Reliance Retail's annual profit crossed the Rs 10,000 crore-mark for the first time in its fourth quarter earnings, reported on Monday. The grocery business clocked the highest growth in FY24 at 31 per cent. Fashion and lifestyle grew at about 23 per cent, and consumer electronics grew 18 per cent.
Shares of Reliance Industries were trading at Rs 2,925.80 on the BSE on Wednesday at 10.30 am.
