Mukesh Ambani's Reliance Industries to spin off FMCG brands into new arm ahead of mega IPO plans
Reliance Industries Ltd
(RIL) is embarking on a restructuring exercise that aims to group all its fast-moving consumer goods (FMCG) brands, currently part of its retail ventures, into a new company so they get "specialised and focused attention", besides drawing investors focused on this segment.
The products are currently with Reliance Retail Ventures Ltd (
RRVL
), Reliance Retail Ltd (RRL) and Reliance Consumer Products Ltd (RCPL). The unit that's going to house the FMCG brands is to be called
New Reliance Consumer Products Ltd
(New RCPL) and will be a direct subsidiary of RIL, much like Jio Platforms Ltd.
Biz Entails Large Capital Investments
The move will help attract a 'different set of investors', according to a June 25 National Company Law Tribunal (NCLT) order, which stems from RIL's filing for the restructuring.
'The consumer brands business is one of building brands, managing the entire product lifecycle from research, development, manufacturing, distribution and marketing,' according to the order. 'This is a large business by itself requiring specialised and focused attention, expertise and different skill sets as compared to retail business.'
RIL chairman
Mukesh Ambani
has already indicated
IPO plans
for the retail and telecom businesses. The restructuring exercise will help ready the retail business for a share sale by spinning off the
FMCG business
, which could have inflated valuations, said a person aware of the company's plans. As per RIL's latest figures, RRVL has a valuation of over $100 billion. That's likely to make the public offer, if it materialises, one of the largest in recent times.
The FMCG business was worth Rs 11,500 crore in FY25 and features over 15 homegrown and acquired brands such as Campa (soft drinks), Independence (packaged grocery) and Ravalgaon (confectionery). Other acquisitions include jam and sauce brand SIL, regional beverage brand Sosyo and shampoo brand Velvette.
'This business also entails large capital investments on an ongoing basis and can attract a different set of investors,' according to the NCLT document. 'The consumer brands business is not part of the retail business and it is proposed that this business is housed in a direct subsidiary of RIL.'
RCPL—which is responsible for manufacturing, distribution and marketing—sells the products at prices that are 20-40% lower than rivals Coca-Cola, Mondelez and Hindustan Unilever besides offering higher trade margins.
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