Mukesh Ambani-led Reliance Consumer Products (RCPL) is set to take on the likes of FMCG food brands including ITC, Tata Consumer Products, Adani Wilmar and Patanjali.
RCPL, the newly formed FMCG arm of Reliance Retail Ventures (RRVL), offers staples, processed foods, beverages and other daily essentials under the newly launched brand Independence.
On December 15, Reliance forayed into staples with the launch of brand Independence. RRVL is a wholly-owned subsidiary of Reliance Industries, and in 2022 March, Mukesh Ambani had revealed plans about FMCG debut at the company’s annual shareholder meeting.
Presently, the launch is limited to Gujarat. However, it is on a pilot testing basis. RCPL said the products will be affordable, and the brand will be rolled out nationally.
According to brokerage firm Nomura, the brand Independence will directly take on Adani’s Wilmar in edible oil, grains and pulses; Patanjali Foods in biscuits, edible oil, packaged atta; Parle and Britannia in biscuits; Tata Consumer in pulses, packaged water; and ITC in packaged atta, biscuits.
Jio Mart app and Reliance-run retail stores will currently sell Independence line of products. The distribution network will be extended to FMCG retailers and kirana stores in the coming months. The product mix includes biscuits, packaged water, edible oil, packaged atta (wheat flour), besan (gram flour), pulses, grains and sugar.
Nomura stated that RCPL is a newly-incorporated company despite RRVL already having a range of private-label brands which are sold across its 2,460 brick and mortar grocery stores and Jio Mart app. “The products reach 2 million merchant partners/kirana stores across 260 cities,” Nomura added.Nomura further said RRVL incorporated another company (Reliance Beauty and Personal Care Ltd) on November 28, 2022. Reliance Industries is incubating newer separate companies with the idea of listing them over the medium term and unlocking value, Nomura said.
RRVL currently retails private label brands including Good Life for pulses, flour, rice, oils; Snac Tac for noodles, biscuits, namkeen; Enzo for detergents; Puric/Get Real for soap, hand wash, hair oil, shower gel; and Scrubz/Expelz/Mopz for dish wash, toilet, surface cleaner.
Besides, Soft drink brands Campa Cola and Sosyo was also acquired by RRVL in August 2022. This is a major step by Reliance to fully participate in the retail of staples and FMCG products outside its own distribution network, Nomura said, adding that RRVL’s new company will disrupt the Indian FMCG space.