Mukesh Ambani-led Reliance Industries has received approval to spin off its consumer goods business into a separate unit from its retail arm, Reliance Retail Ventures Ltd (RRVL).
The new unit will be known as New Reliance Consumer Products Ltd and will become a direct subsidiary of Reliance Industries. The business is currently known as Reliance Consumer Products Ltd (RCPL) and falls under RRVL, which is led by Ambani's daughter, Isha.
The spin-off comes after years of investment by Reliance to build its own FMCG brand, Independence, and acquisitions such as Campa Cola, Lotus Chocolate, and Sosyo Hajoori Beverages, to compete with giants like Coca-Cola, ITC, Nestlé, and others.
According to Reuters, Reliance received approval from the National Company Law Tribunal on June 25 to transfer its consumer business from its retail arm into the direct subsidiary, New Reliance Consumer Products Ltd. Following the internal restructuring, Reliance Industries will hold an 83.56% stake in the entity.
“This is a large business by itself, requiring specialised and focused attention, expertise, and different skill sets compared to the retail business. This business also entails large capital investments on an ongoing basis and can attract a different set of investors,” Reliance told the Tribunal, as per the news agency.
Outlook Business has sent mailed Reliance Retail to understand which brands will be part of the new entity. This copy will be updated once we receive a response.
How Reliance Built Its Consumer House – Takeover After Takeover
Reliance Consumer Products Ltd (RCPL) was established on November 30, 2022, as a wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL). Since then, the company has been on a rapid spree to acquire or partner with legacy FMCG brands. It started with the 2022 acquisition of the Campa brand for ₹22 crore. Since then, the ₹10 soft drink has disrupted the beverage market, challenging the likes of Coca-Cola and PepsiCo with its pricing model.
In December that year, RCPL launched its own brand of staples, FMCG, and personal care products under the name Independence.
In the following year, it acquired a 51% stake in Lotus Chocolate, a 50% stake in Sosyo, as well as SIL Foods and the legacy confectionery brands of Ravalgaon. It also added beverage brand Raskik, candy label Toffeeman, and revived Velvette, a sachet-shampoo pioneer.
The company also partnered with former Sri Lankan cricketer Muttiah Muralitharan to co-create, manufacture, and market Spinner sports drinks, priced at just ₹10 for a 250 ml bottle.
In the fourth quarter of the financial year 2024–25 (Q4FY25), Reliance Industries’ consumer businesses helped offset weaker results in the oil-to-chemicals (O2C) and upstream segments.
Retail performed well, with EBITDA growing 14.4% year-on-year, thanks to strong customer footfall and growing online sales. The company added 238 new stores, taking the total to 19,340. Jio’s EBITDA grew 18% year-on-year to ₹173 billion, supported by higher tariffs and the expansion of digital services. Subscriber numbers rose by 6.1 million to 488.2 million, and average revenue per user (ARPU) increased to ₹206.2 per month, a 13.5% rise.
However, the O2C business saw a 17.5% decline in EBITDA due to falling fuel margins and weaker polyester prices. On the upside, cheaper ethane use and a slight improvement in petrochemical margins were positives.
RCPL reported revenue of ₹11,500 crore in FY25, with both Campa and Independence crossing ₹1,000 crore in sales. The combined reach of its brands exceeded one million retail outlets last fiscal year, according to the company’s earnings report.
Reliance Consumer Expansion Plan
Earlier, The Economic Times reported that Reliance Consumer Products Ltd (RCPL) plans to expand its nationwide footprint by March 2027, with an investment of ₹6,000–₹8,000 crore. RCPL now plans to add nearly 10–12 new greenfield and co-packing plants under its largest-ever capex initiative.
In February, Reliance set up a plant in Guwahati in collaboration with local partner Jericho Foods and Beverages LLP to manufacture soft drinks and water for the Northeast region. Another facility is currently under development in Begusarai, Bihar.
Reliance Retail IPO Buzz
Meanwhile, reports suggest that the Mukesh Ambani-led conglomerate is planning to list its retail arm, RRVL, soon. In November last year, Reuters reported that Reliance was planning to first list its telecom unit Jio, which could be valued at as much as $112 billion. Following that, the public listing of Retail Ventures may be planned.
However, during the analyst call after the fourth-quarter earnings, Reliance management declined to provide a timeline on the subject.
