Reliance to restructure FMCG business
The strategy is to steer towards 600 million mass-end consumers, leveraging high trade margins and retail partnerships. The company aims to scale up the business nationally by March 2027.
08 Jul 2025 | 150 Views | By WhatPackaging? Team
Reliance Industries (RIL) is restructuring its fast-moving consumer goods (FMCG) business by hiving off its brands into a new company, New Reliance Consumer Products (New RCPL), a wholly-owned subsidiary. The move is aimed at creating a sharper business focus while attracting a new set of investors with a dedicated interest in the FMCG segment.
The FMCG brands are currently housed under Reliance Retail Ventures (RRVL), Reliance Retail (RRL), and Reliance Consumer Products (RCPL). Once the restructuring is complete, New RCPL will mirror the structure of Jio platforms, functioning independently under RIL’s umbrella.
According to a National Company Law Tribunal (NCLT) order dated 25 June, the restructuring will allow the consumer brands business to receive “specialised and focused attention”, as it entails a different set of expertise compared to the broader retail operations.
RIL chairman Mukesh Ambani has already hinted at plans for an initial public offering (IPO) of both its telecom and retail businesses. By spinning off the FMCG unit, the company is paving the way for an eventual public listing of its retail business, which could potentially increase its valuation. At present, RRVL is valued at over USD100 billion.
RIL’s FMCG portfolio clocked INR 11,500-crore in revenues in FY 2024-2025, led by over 50 brands, both homegrown and acquired, which include Campa, Independence, Ravalgaon, SIL, Sosyo, and Velvette. The products, priced 20 to 40% lower than market rivals such as Coca-Cola, Mondelez, and Hindustan Unilever, are backed by an aggressive distribution strategy aimed at value-conscious Indian consumers.
The business, managed by RCPL, is present in over one million retail outlets with a 3,200-strong distributor network. General trade or kirana stores contributed more than 60% to total FMCG sales in FY25.
The restructuring will follow a four-step process that involves FMCG brands from RRL being transferred to RRVL on a slump-sale basis. Amalgamating RCPL will be into RRVL. The consolidated consumer brands business will be demerged into a non-operational entity, Tira Beauty, and it will be renamed New RCPL, which will carry forward the FMCG business on a going-concern basis.
Upon completion of the restructuring, New RCPL will become a direct subsidiary of RIL, overseeing the manufacture, marketing, and distribution of FMCG products and making strategic investments across the segment.