Reliance’s FMCG division, which operates under brands such as ‘Smart Bazaar’, is part of its broader retail segment.
Owned by Mukesh Ambani Reliance Industries plans to invest up to Rs 3,900 crore in its fast-moving consumer goods (FMCG) division to strengthen its position against major players such as Hindustan Unilever, ITC, Coca-Cola and Adani Wilmar, The Economic Times reported on Thursday.
On July 24, the board of directors of Reliance Consumer Products (RCPL) unanimously passed special resolutions to raise capital for “business operations” during an extraordinary general meeting.
Reliance’s FMCG division, which operates under brands such as ‘Smart Bazaar’, is part of its broader retail segment, which also includes electronics, fashion and connectivity products.
Reliance plans to double its value by 2027
The expansion plans are part of Reliance’s broader strategy to double its value by 2027, the year the company celebrates its 50th anniversary. Ambani had announced this goal during the annual general meeting held on August 31.
During the meeting, the company said its retail segment posted gross revenues of $36.8 billion in FY23-24, up 17.8 per cent from the previous year. Overall, Reliance Industries achieved a record consolidated revenue of Rs 10,001,222 crore ($119.9 billion) in FY24, Ambani said.
Indian FMCG market to surpass $1.4 trillion by 2027
Reliance has been strengthening its presence in the retail sector through acquisitions and partnerships. Notably, it acquired the defunct Campa Cola brand in 2022 for approximately Rs 22 crore. The company is also focusing on the confectionery sector, having acquired Ravalgon and Lotus Chocolates. Additionally, Reliance Consumer has forged a partnership with Sri Lanka-based Maliban Biscuit.
Reliance’s retail store network has grown to 18,836 locations, with total retail space expanding to 79.1 million sq ft, reflecting a year-on-year increase of 20.6 per cent, according to its latest integrated annual report.
The extensive expansion offering is part of the company’s strategy to capitalise on the Indian FMCG market, which is projected to surpass $1.4 trillion by 2027.
First published: September 5, 2024 | 10:34 am IS
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