The company says that this structure will enable sharper execution, faster innovation cycles, and deeper operational focus, all critical to winning in consumer markets
In an attempt to consolidate all of its consumer brands into a single, sharply focused company, Reliance Industries will bring its consumer products business under its direct ownership. It is aiming to become the fastest consumer brands company to reach Rs 1 lakh crore in revenue within five years.
“RCPL is set to become a direct subsidiary of RIL. This structure will enable sharper execution, faster innovation cycles, and deeper operational focus, all critical to winning in consumer markets. Our near-term ambition is clear, to be the fastest consumer brands company to reach Rs 1 lakh crore (USD 11.7 billion) in revenue within five years. Our long-term ambition is to become India’s largest FMCG company with a global presence,” the company stated at the annual general meeting (AGM).
Shedding light on the factors that influenced the decision, the company emphasised that for the first time in India’s history, rural markets, consisting of 900 million consumers, are driving 65 per cent of the FMCG growth. They are adopting global-quality branded products faster than urban markets, with penetration growing at 35 per cent annually. This combination of a rising middle class and accelerating rural adoption marks an unmissable consumption opportunity, the company added.
“This year, we added 2,659 new stores, taking our total to 19,340 stores, covering 77 million square feet in over 7,000 towns. Stores remain the backbone of our retail revenues, contributing around 70 per cent, and will continue to grow through high single-digit like-for-like gains, plus a steady expansion of 2,000 to 3,000 new stores annually,” the company noted regarding Reliance Retail.
Looking ahead, the company is confident of delivering over 20 per cent compounded annual growth rate (CAGR) in retail revenues over the next three years. The registered customer base for the segment has grown to 349 million, up 15 per cent year-on-year.
