Reliance Retail Will Transfer FMCG Brands to RCPL

Apoorva Bajj

Sep 17, 2024 — 2 min read

Reliance Retail Will Transfer FMCG Brands to RCPL

The majority of Reliance Retail's fast-moving consumer goods (FMCG) brands, such as Campa and several well-known private labels, are going to be transferred to the newly founded FMCG division of Reliance Consumer Products Ltd (RCPL), which is scheduled to take over their operations.

The purpose of this change is to swiftly expand the firm while maintaining a devoted focus. Snactac, Puric, Glimmer, Enzo, and Get Real are some of the private labels that are involved in the present scenario. Additionally, RCPL intends to construct four to five unique bottling factories for Campa by purchasing bottling equipment and leasing it to partners who would handle the operations. These individuals will be responsible for managing the operations. The corporation is currently engaged in negotiations to conclude these deals.

Prospective Expansion Initiatives

Reliance Retail Ventures is getting ready to invest up to INR 3,900 crore in RCPL through a combination of equity and debt, and these moves happen at the same time. As of late, RCPL was successful in obtaining board clearance for this capital infusion.

Since the introduction of RCPL in November 2022, this will be the greatest investment that Reliance Retail has made in the fast-moving consumer goods (FMCG) sector once it is finished. In addition to being a wholly-owned subsidiary of Reliance Industries, Reliance Retail Ventures also functions as the holding entity for all of the retail businesses that are held by the group, including RCPL.

During a conversation with the media, a senior executive from the industry said that an internal transfer of the brands will be carried out through various mechanisms, such as licensing, in order for RCPL to become the single FMCG organisation that owns the trademarks and sells them.

When it comes to Reliance Retail, there are some smaller private brands that will continue to fall within its purview because they will not be shared to general trade. It is anticipated that the supply of Campa would rise as a result of the creation of new bottling facilities. These facilities will solve the existing limits on bottling capacity, which have hindered the retail expansion of Campa.

Mergers and Collaborations

Reliance Consumer Products Limited (RCPL) has, ever since it was founded, placed a primary emphasis on acquiring and forming partnerships with fast-moving consumer goods (FMCG) firms. In India, notable partnerships include cooperation with companies from Sri Lanka such as Elephant House and Maliban Biscuit, which are responsible for the production and distribution of their respective products.

Additionally, RCPL has made substantial acquisitions, including the complete purchase of the candy brand Ravalgaon, a 51 percent investment in Lotus Chocolate, and a 50 percent share in Sosyo Hajoori Beverages. These acquisitions have been undertaken by RCPL. Independence, a brand that includes packaged foods, edible oil, and staples, was also introduced by the corporation recently.