Reliance Industries’ consumer products arm is scouting for another small acquisition to expand into a new FMCG segment.
It is now in talks to acquire a majority stake in Chennai-based staples and ready-to-cook mixes maker Udhaiyam Agro Foods.
The unit has a track record of buying legacy brands such as Campa Soft Drinks and Velvette shampoos to build scale.
Reliance Industries’ consumer products unit is once again in the market to acquire a smaller brand as it looks to expand into a new segment. The company, which was recently spun off from Reliance Retail to become a direct subsidiary of Reliance Industries, is known for acquiring smaller vintage brands such as Campa Soft Drinks and Velvette shampoos.
Now, the company is in talks with Chennai-based staples and ready-to-cook mixes maker Udhaiyam Agro Foods to buy a majority stake, The Economic Times (ET) reported. The Chennai, Tamil Nadu-based company was incorporated in July this year as an unlisted arm of Shri Lakshmi Agro Foods Pvt Ltd.
1 December 2025
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Udhaiyam has two directors, Selvaraj Sudhakar and Selvaraj Dhinakar, who also founded Shri Lakshmi Agro Foods Pvt Ltd in 2002, according to data from Tracxn. The company reported revenue of ₹668 crore as of March 31, 2024.
According to the report, citing sources, the deal between Reliance and Udhaiyam is expected to be mid-sized and in line with Reliance’s earlier acquisitions aimed at tapping regional markets before a national rollout.
Chennai-based Udhaiyam operates largely in regional markets, competing with established players such as Tata Consumer Products, iD Fresh Food and MTR. Its promoters will retain minority shareholdings in the business, the report said.
The development comes after Reliance Retail’s recent move to transfer its FMCG operations into New Reliance Consumer Products (New RCPL), a newly formed direct subsidiary of Reliance Industries, to sharpen its focus on packaged consumer products. Its portfolio includes beverages such as Campa, Sure Water and Spinner sports drinks; food brands like Sil Jam, Lotus Chocolate and Alan’s Bugles chips; as well as Velvette personal care and Tira Beauty.
Earlier this month, Reliance informed stock exchanges that it had wound up Reliance Consumer Products (RCPL), previously a Reliance Retail subsidiary, and created New RCPL under a composite scheme of arrangement effective December 1. Separately, Reliance Consumer announced a ₹40,000-crore pact with the government to set up food manufacturing units across India. The Mukesh Ambani-backed company reported revenue of over ₹11,000 crore in FY25.
