Reliance eyes growth in fast-moving consumer goods segment through brand acquisitions

INDIA – Indian multinational conglomerate company, Reliance (RIL) is planning to grow its Fast-Moving Consumer Goods (FMCG) sector by potentially purchasing a few FMCG companies.

RIL and CavinKare are negotiating for RIL to take over management of Garden Namkeens and other businesses like Lahori Jeera and Bindu Beverages.

Reliance is in a “advanced stage” of negotiations with the three companies, sources familiar with the issue.

Just a few days prior, the Mumbai-based business purchased Campa, a well-known local soft drink brand, from the Pure Drinks Group of Delhi.

The company will launch its FMCG business this year, according to Isha Ambani, Director of Reliance Retail, who made the announcement on August 29 during Reliance Industries’ 45th Annual Meeting.

“I am excited to announce that this year we will launch our FMCG business. The aim of this business is to develop and offer high-quality and affordable products that meet the daily needs of all Indians,” she said.

The company’s strategy is in accordance with the addition of more brands in the FMCG industry. Reliance is currently discussing the parameters of the agreements in all three situations.

The FMCG industry promises continued transformation and growth in the near future as a result of a significant shift in consumer behavior and organizational tactics that are being reinvented to maintain, acquire, and expand value propositions for customers.

Indian FMCG market is estimated to be worth US$100 billion and is mostly controlled by companies like HUL, Reckitt, P&G, Nestle, Dabur, Emami, and Marico.

The value of India’s FMCG (fast-moving consumer goods) industry rose by 16 percent in 2021, according to a report by Times of India.

Price increases and a small base against which to compare have been the key drivers of the sharpest growth in nine years, although pressure has continued to mount on the actual volume of goods sold.

The FMCG industry promises continued transformation and growth in the near future as a result of a significant shift in consumer behavior and organizational tactics that are being reinvented to maintain, acquire, and expand value propositions for customers.

The government has made some significant moves to encourage additional investment in the industry and provide new opportunities for international businesses.

An impressive US$18.19 billion in foreign direct investment (FDI) poured into India’s FMCG sector in 2020.

The government’s incentives and FDI money have aided the sector in building a strong supply chain, boosting employment, and gaining great visibility for FMCG companies.

In the future, it is anticipated that the government would continue to push for the sector’s development by alluring investments and programs.

In joining the market, Reliance will now face off against Adani Wilmar, Nestle, Hindustan Unilever, and other FMCG companies.

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