Reliance Industries to Consolidate FMCG Brands into One New Company

Mumbai, 3 July 2025: Reliance Industries Ltd (RIL), led by Mukesh Ambani, is reorganising its consumer goods business by transferring all FMCG brands into a new entity-New Reliance Consumer Products Ltd (New RCPL). This strategic move aims to streamline operations and prepare the ground for a high-profile  IPO for its consumer businesses in the near future.

Focused Consumer Arm to Attract Dedicated Investors

Currently, Reliance’s FMCG brands are spread across Reliance Retail Ventures Ltd (RRVL), Reliance Retail Ltd (RRL), and Reliance Consumer Products Ltd (RCPL). These will now be consolidated into New RCPL, a direct subsidiary of RIL. The objective is to create a specialised business unit that can scale independently and appeal to investors, focusing solely on consumer brands.

The structure mirrors that of Jio Platforms, ensuring the new entity can grow without impacting the valuation of the broader retail business. The National Company Law Tribunal (NCLT) approved the restructuring through an order dated 25 June 2025.

Four-Phase Transition to Ensure Smooth Execution

The restructuring will follow a defined four-step process:

1. FMCG brands under RRL will be transferred to RRVL via a slump sale.
2. RCPL will be merged with RRVL.
3. The combined consumer brands business will be demerged and moved to Tira Beauty Ltd.
4. Tira Beauty Ltd will be renamed New RCPL and will become a direct RIL subsidiary.

This process allows Reliance to reorganise without disrupting current operations or trade partnerships.

Solid Financial Base with Strategic Channel Focus

In FY25, Reliance’s FMCG business posted revenue of ₹11,500 crore. Over 60% of this came from general trade channels, such as kirana stores. The company’s portfolio includes:

• Campa (beverages) with double-digit market share in key regions
• Independence (packaged groceries)
• Ravalgaon (confectionery)
• SIL (jams and sauces)
• Sosyo (regional drinks)
• Velvette (shampoos)

An internal report highlights 3.5× year-on-year growth. Reliance’s consumer products are now sold through over 1 million retail outlets, supported by 3,200+ distributors.

Competitive Pricing Model Targets India’s Mass Market

RCPL’s pricing strategy undercuts key rivals like Coca-Cola, HUL, and Mondelez by 20–40%, while offering better margins to retailers. This model caters to over 600 million mass-market consumers and builds strong partnerships with small stores.

This approach has enabled the company to gain rapid market share and ensures high turnover for retailers, key to brand loyalty in India’s fragmented retail landscape.

IPO Readiness Gains Momentum with Business Realignment

With RRVL’s valuation already crossing $100 billion, the spin-off of the FMCG segment strengthens Reliance’s case for a blockbuster IPO. A dedicated consumer arm with transparent financials allows for clearer investor messaging and helps isolate valuation for different business verticals.

The move reflects a broader strategy of segment-focused growth, positioning each unit for independent success.

National Growth Vision by FY27

Reliance aims to scale its FMCG operations across India by March 2027, banking on its retail footprint, brand strength, and value pricing. New RCPL is expected to play a central role in this expansion plan.

This spin-off is more than a business reorganisation-it marks Reliance’s deepening focus on India’s consumer market. By creating a standalone FMCG entity, the company is laying the foundation for rapid national growth, targeted investor engagement, and one of the most anticipated IPOs in recent times.

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