Reliance Eyes Majority Stake Purchase in Udhaiyam Agro Foods

The consumer products division of Reliance Industries is once again looking to enter a new market by purchasing a smaller brand. The business is well-known for acquiring lesser historical brands like Velvette shampoos and Campa Soft Drinks. It was recently separated off from Reliance Retail to become a direct division of Reliance Industries.

According to The Economic Times (ET), the company is currently negotiating a majority interest purchase with Udhaiyam Agro Foods, a Chennai-based manufacturer of ready-to-cook mixes and basics. The business was established as an unlisted division of Shri Lakshmi Agro Foods Pvt Ltd in July of this year. According to Tracxn data, Udhaiyam's two directors, Selvaraj Sudhakar and Selvaraj Dhinakar, both created Shri Lakshmi Agro Foods Pvt Ltd in 2002. As of March 31, 2024, the company recorded INR 668 crore in revenue.

Reliance Expanding its FMCG Portfolio

The purchase between Reliance and Udhaiyam is anticipated to be mid-sized and consistent with Reliance's previous acquisitions intended to target regional markets prior to a national rollout, according to the newspaper, which cites sources. Udhaiyam competes with well-known companies like Tata Consumer Products, iD Fresh Food, and MTR in regional marketplaces.

According to the report, its promoters would continue to have minority stakes in the company. The move follows Reliance Retail's recent decision to concentrate more on packaged consumer goods by moving its FMCG activities into New Reliance Consumer Products (New RCPL), a recently established direct subsidiary of Reliance Industries. Beverages such as Campa, Sure Water, and Spinner sports drinks; food brands like Alan's Bugles chips, Lotus Chocolate, and Sil Jam; and personal care brands like Velvette and Tira Beauty are all part of its portfolio.

Acquisitions and Mergers New Trends of Indian Market

India's consumer market had 115 mergers and acquisitions between January and September 2025, the most in four years, according to research by Equirus Capital. The highest portion of transactions were related to food and drink, with clothing and accessories coming in second.

According to the ET report, consumer transactions amounted to more than INR 21,200 crore over the course of the nine months, with the F&B sector accounting for 74% of the overall value. Prospects for industry expansion are still favourable.

According to market research firm IMARC Group, India's packaged food market is expected to grow at a compound annual rate of 6.5% between 2025 and 2033, from $121.3 billion in 2024 to $224.8 billion by 2033. This growth will be fuelled by the country's rapid urbanisation, growing demand for convenience foods, and the growth of online food delivery services.