Reliance Retail to transfer majority of its FMCG brands to RCPL to expand business

Reliance Retail will transfer most of the fast-moving consumer goods (FMCG) brands it owns, such as camp and some of the popular ones private labels to the newly created FMCG entity Reliance Consumer Products Ltd (RCPL) will rapidly scale up the business with a dedicated approach, two industry executives said.

The list includes private labels like Snactac, Puric, Glimmer, Enzo and Get Real. RCPL has also decided to create four or five exclusive brands. bottling plants for Campa, which will see it buy the bottling equipment and lease it to a partner who will own and run the operations. It is currently in talks to freeze those deals, according to executives.

Plans to expand bottling and transfer of Campa Consumer goods brands comes after Reliance Retail Ventures prepared for a Capital infusion of up to Rs 3,900 crore in RCPL through a combination of equity and debt, as reported by ET recently. RCPL recently received board approval for this.

Once completed, it will be Reliance Retail’s largest capital infusion into the FMCG entity since its inception in November 2022.

Reliance Retail Ventures, a wholly owned subsidiary of Reliance IndustriesIt is the holding company for all the conglomerate’s retail businesses, including RCPL.

“RCPL will operate as a full-fledged FMCG company. Right now, some brands are owned by RCPL and others by Reliance Retail. There will be an internal transfer of the brands through means such as licensing so that RCPL becomes the sole FMCG entity owning and selling the brands,” said a senior industry executive, who did not want to be named. The person said some of the smaller private labels sold by Reliance Retail will continue to be under its control as they will not be distributed to the general trade. He said Campa’s availability will be expanded with the new bottling plants as limited bottling capacity has become a hindrance in expanding its retail presence. ET’s queries sent via email to Reliance Retail went unanswered till the time of going to press.

Since the inception of RCPL, Reliance Retail has primarily undertaken acquisitions and partnerships of FMCG brands through this entity. These include partnerships with Sri Lankan companies Elephant House and Maliban Biscuit to manufacture and sell their products in India, the acquisition of 100% stake in confectionery brand RavalgaonPurchase of 51% stake in Lotus Chocolate and 50% in beverage maker Sosyo Hajoori Beverages. The company also launched the Independence brand in the packaged foods, edible oil and staples segment.

Previous acquisitions of FMCG brands like Campa were done through Reliance Retail or its parent Reliance Retail Ventures. Private labels from the retail business that are already sold in general trade and will be moved to RCPL include Snactac in packaged snacks, Puric in hygiene and sanitisers segment, Enzo in detergents, Glimmer in beauty products and personal care products under Get Real.

Reliance Retail wants RCPL to compete with Unilever Hindustan, CCICoca-cola, Adani Wilmar and others for a larger share of the Indian market.

Director of Reliance Retail Ventures Isha Ambani At Reliance Industries’ annual general meeting held last month, the company said that in the FMCG sector, the company’s focus was “to create high-quality products at affordable prices to drive increased consumption across India.” It said the company had relaunched several popular brands, including Campa Cola, Lotus Chocolates and Sosyo, with early success.