With this, Reliance Consumer Products is set to enter into direct competition with the key players in the segment
Aimed at scaling up distribution nationally and setting up competition with the major players in the FMCG sector, Reliance Consumer Products (RCPL) is set to acquire SIL’s brands, a packaged foods brand which consists of products such as cooking pastes, jams, sauces, according to the media reports.
The media reports that cited executives aware of the development added that the formalities of the acquisition have been completed. RCPL will acquire SIL’s brands from Food Service India, its current owner. As per the available information, SIL has manufacturing facilities near Bengaluru and Pune.
With this, RCPL is likely to enter into direct competition with other players such as Hindustan Unilever (HUL), Tata Consumer and Cremica, the reports added. Reliance Consumer is expected to go ahead with its strategy of pricing the products lower than the key players in the segment to offer higher trade margins to retailers, as per the reports.
The reports clarified that RCPL is acquiring SIL’s brands and will not acquire the company or the manufacturing facility. RCPL, a wholly owned subsidiary of Reliance Retail Ventures (RRVL) registered a top line of Rs 8,000 crore for the first nine of the current financial year (9MFY25). The reports added that Reliance Retail Ventures, in its December quarter earnings, stated that its Campa and Independence brands were expected to touch Rs 1,000 crore by the time the current fiscal ends.
