Mukesh Ambani-led Reliance Industries on Friday said it will reorganise its consumer products business into a direct subsidiary. The executive director of Reliance Retail, Isha Ambani, said the move aims to strengthen Reliance Consumer Products' (RCPL) position as one of the youngest growth engines of the oil-to-media conglomerate. The development also aims to give RCPL more operational independence and facilitate quicker adoption of changing consumer trends.
“RCPL is set to become a direct subsidiary of RIL. This will consolidate all our consumer brands into a single, sharply focused company,” Isha told shareholders at the company’s AGM on August 29. “It will provide the independence to focus exclusively on its markets, products, and customers without competing for management bandwidth. This structure will enable sharper execution, faster innovation cycles, and deeper operational focus- all critical to winning in consumer markets,” she added.
The strategic spin-off is mainly driven by India’s growing consumer market, and it is something that the Isha Ambani-led company is betting big on.
“India’s consumer market is a $2 trillion high-growth opportunity, expanding at over 8% annually. We need a strategic approach to seize this opportunity,” Isha Ambani said.
Reliance Industries chairman Mukesh Ambani said the creation of RCPL as a direct arm of RIL, along with Reliance Intelligence, marks the launch of two new growth engines for the oil-to-media conglomerate.
“Each of them has the potential to grow larger than our existing business segments. RCPL, as a subsidiary of RIL, is a strategic move to create India’s largest FMCG company. RCPL’s phenomenal growth is guaranteed by the consumption boom in India, our world-class supply chain, and advanced manufacturing capabilities,” the RIL chairman said.
