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Time of India
03-07-2025
- Business
- Time of India
Reliance Industries shares in focus as plans to spin off FMCG brands into new arm take shape
Shares of Reliance Industries Ltd (RIL) are set to be in focus on Thursday, July 3, after the conglomerate announced a major restructuring of its consumer business, spinning off its fast-moving consumer goods (FMCG) brands into a new subsidiary ahead of a potential mega initial public offering (IPO). Reliance Industries is carving out its growing FMCG portfolio from its retail units to form a new entity — New Reliance Consumer Products Ltd (New RCPL) — which will be a direct subsidiary of RIL, much like Jio Platforms. The restructuring is intended to give the business 'specialised and focused attention', as well as draw interest from a 'different set of investors', according to a June 25 National Company Law Tribunal (NCLT) order seen by The Economic Times. The FMCG brands are currently housed across three group entities — Reliance Retail Ventures Ltd (RRVL), Reliance Retail Ltd (RRL) and Reliance Consumer Products Ltd (RCPL). These will now be consolidated under New RCPL as RIL prepares for a public listing of its broader retail business. 'The consumer brands business is one of building brands, managing the entire product lifecycle from research, development, manufacturing, distribution and marketing,' the NCLT order said. 'This is a large business by itself requiring specialised and focused attention, expertise and different skill sets as compared to retail business.' Strategic positioning ahead of IPO RIL chairman Mukesh Ambani has previously indicated plans for IPOs of the group's telecom and retail arms. Analysts suggest that the FMCG spin-off is a step toward readying the retail business for listing by isolating high-growth, capital-intensive verticals that may otherwise skew valuation. According to the NCLT document, 'This business also entails large capital investments on an ongoing basis and can attract a different set of investors.' It added, '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.' A person aware of the company's internal discussions told The Economic Times that separating the FMCG unit 'could have inflated valuations' and may have made the IPO process more complex. By carving it out, RIL can streamline the offering and offer greater clarity to investors. Rs 11,500 crore FMCG play Reliance's FMCG business, worth Rs 11,500 crore in FY25, has grown through both homegrown labels and strategic acquisitions. Its product lineup includes Campa (soft drinks), Independence (packaged groceries), Ravalgaon (confectionery), SIL (jams and sauces), Sosyo (regional beverages), and Velvette (shampoos), among others. RCPL, the existing consumer goods arm, sells products at discounts of 20–40% compared to incumbents like Coca-Cola, Mondelez and Hindustan Unilever, while also offering higher trade margins — a strategy designed to rapidly gain market share. With RRVL already valued at over $100 billion, the upcoming IPO, if launched, could rank among the largest in recent Indian corporate history. Investors are expected to closely track further developments as RIL finalises the demerger and reveals listing timelines. Also read | Reliance Industries shares up 25% in 2025; 4 reasons stock could gain another 18% ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Economic Times
03-07-2025
- Business
- Economic Times
Reliance Industries shares in focus as plans to spin off FMCG brands into new arm take shape
Shares of Reliance Industries Ltd (RIL) are set to be in focus on Thursday, July 3, after the conglomerate announced a major restructuring of its consumer business, spinning off its fast-moving consumer goods (FMCG) brands into a new subsidiary ahead of a potential mega initial public offering (IPO). ADVERTISEMENT Reliance Industries is carving out its growing FMCG portfolio from its retail units to form a new entity — New Reliance Consumer Products Ltd (New RCPL) — which will be a direct subsidiary of RIL, much like Jio Platforms. The restructuring is intended to give the business 'specialised and focused attention', as well as draw interest from a 'different set of investors', according to a June 25 National Company Law Tribunal (NCLT) order seen by The Economic Times. The FMCG brands are currently housed across three group entities — Reliance Retail Ventures Ltd (RRVL), Reliance Retail Ltd (RRL) and Reliance Consumer Products Ltd (RCPL). These will now be consolidated under New RCPL as RIL prepares for a public listing of its broader retail business. 'The consumer brands business is one of building brands, managing the entire product lifecycle from research, development, manufacturing, distribution and marketing,' the NCLT order said. '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 previously indicated plans for IPOs of the group's telecom and retail arms. Analysts suggest that the FMCG spin-off is a step toward readying the retail business for listing by isolating high-growth, capital-intensive verticals that may otherwise skew valuation. ADVERTISEMENT According to the NCLT document, 'This business also entails large capital investments on an ongoing basis and can attract a different set of investors.' It added, '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.'A person aware of the company's internal discussions told The Economic Times that separating the FMCG unit 'could have inflated valuations' and may have made the IPO process more complex. By carving it out, RIL can streamline the offering and offer greater clarity to investors. ADVERTISEMENT Reliance's FMCG business, worth Rs 11,500 crore in FY25, has grown through both homegrown labels and strategic acquisitions. Its product lineup includes Campa (soft drinks), Independence (packaged groceries), Ravalgaon (confectionery), SIL (jams and sauces), Sosyo (regional beverages), and Velvette (shampoos), among the existing consumer goods arm, sells products at discounts of 20–40% compared to incumbents like Coca-Cola, Mondelez and Hindustan Unilever, while also offering higher trade margins — a strategy designed to rapidly gain market share. ADVERTISEMENT With RRVL already valued at over $100 billion, the upcoming IPO, if launched, could rank among the largest in recent Indian corporate history. Investors are expected to closely track further developments as RIL finalises the demerger and reveals listing timelines. Also read | Reliance Industries shares up 25% in 2025; 4 reasons stock could gain another 18% (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
19-06-2025
- Business
- Time of India
Challenging Coca-Cola & PepsiCo: Reliance to invest up to Rs 8,000 crore in Campa, beverages expansion over next 15 months
Challenging Coca-Cola & PepsiCo: Reliance to invest up to Rs 8,000 crore in Campa, beverages expansion over next 15 months Reliance Consumer Products (RCPL), the FMCG arm of Mukesh Ambani-led Reliance Retail, is set to invest between Rs 6,000 crore and Rs 8,000 crore over the next 12–15 months to scale up its beverage portfolio, including the iconic Campa brand. The move marks RCPL's most significant capital outlay since its launch in 2022. According to a ET report, the investment will support the addition of 10–12 new greenfield and co-packing plants across India, a move aimed at challenging established players like Coca-Cola and PepsiCo, as well as low-cost regional competitors. "The capex is being done on a combined investment of Rs 6,000–8,000 crore by Reliance and some of its partners," a senior executive told the publication. RCPL's beverage portfolio includes Campa Cola, Orange and Lemon, Sosyo, Sun Crush juices, the Spinner sports drink co-created with former Sri Lankan cricketer Muttiah Muralitharan, and the fruit-based hydration brand RasKik. The company is also setting up a facility in Bihar, in addition to the plant in Guwahati built in partnership with Jericho Foods and Beverages to serve the Northeast. Spinner is priced aggressively at Rs 10 for a 250ml bottle, less than half the cost of rival drinks like Gatorade and Sting, demonstrating RCPL's strategy to undercut the market. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 유일한 공식 무료 SOC 게임! 설치도 없습니다! 경복의 바다 다운로드 Undo 'RCPL is focusing on 600 million mass consumers and is working closely with neighbourhood stores by giving them margins at today's cost,' RCPL Director T Krishnakumar had earlier told ET in an exclusive interview. So far, RCPL beverages are produced in 18 co-invested plants. While the company's distribution remains selective, Reliance plans to make its consumer products available nationally by March 2027, with about 70% coverage by March 2026 for key categories like beverages, Krishnakumar said. The broader consumer portfolio includes Sil jams and spreads, Lotus Chocolate, Toffeeman and Ravalgaon confectionery, Alan's Bugles snacks, Velvette personal care products, and the Independence staples range. Notably, most of the company's 15 brands have been acquired since its entry into FMCG in 2022. As per news agency PTI, RCPL's revenue in FY25 touched Rs 11,500 crore, making it the fastest-growing vertical within Reliance Retail. Campa and Independence brands each surpassed Rs 1,000 crore in sales, contributing to RCPL's 3.5X year-on-year growth. Reliance Retail CFO Dinesh Taluja said during an earnings call that Campa has already achieved a double-digit market share in its available regions. The company now reaches over one million retail outlets via a network of 3,200+ distributors, and has begun exploring export opportunities in select international markets. Despite a weather-affected summer, India's beverage market, estimated at Rs 67,000 crore, is projected to more than double to Rs 1.47 lakh crore by 2030, according to think tank ICRIER. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
