AGENCY
new delhi, MAY 6:
Reliance Consumer Products, the fast-moving consumer goods (FMCG) division of Reliance Retail, will be spun off into a separate entity, senior company officials told media persons. The FMCG business, which was launched in 2022, has scaled up in an extremely short period of time, the company officials said. During the quarterly and annual results released last month, the company revealed that Reliance Consumer Products had notched up revenues of Rs 11,500 crore in FY25, surpassing several other well-established companies operating in the sector. More than 60 per cent of revenues came in from general trade, led by in-house brands.
Due to the growth fuelled by demand for its brands, there is a plan to spin off Reliance Consumer Products into a separate entity in order to unlock value.
However, company officials said that details on spinning off Reliance Consumer Products as a separate entity are still in the process of being worked out and it is in the context of larger plans for Reliance Retail Ventures, under which all its retail operations are centred. Presently, Reliance Consumer is a wholly-owned subsidiary of Reliance Retail.
Company officials did not respond to queries by media persons seeking more clarity about the move to spin off Reliance Consumer Products as a separate entity.
Currently, Reliance Consumer Products owns Campa, a brand which has achieved double-digit market share in some key markets where it is sold. Campa has already notched up revenue of over Rs 1,000 crore, much ahead of target, company officials stated. Company officials stated that Staples brand ‘Independence’ has also gained sales momentum and is now being sold across over a million retail outlets as well as a 3,000-strong distribution network.
Reliance Consumer Products has grown both organically and through strategic acquisitions. Acquiring brands with good recall, which have fallen on hard times, like Campa and shampoo brand Velvette, has been the strategy followed.
In its recent earnings call, the company had said it was looking to tap international markets such as the Middle East as well for its brands.
Campa has already been launched in the Middle East soft drink market.
