The company makes staples, snacks and ready-to-cook breakfast mixes and competes against Tata Consumer Products, iD Fresh Food and MTR
As the company looks to tap into regional markets first, Reliance’s consumer products arm is in advanced talks to acquire a majority stake in Udhaiyams Agro Foods. Reports noted that the deal is expected to be mid-sized.
The company makes staples, snacks and ready-to-cook breakfast mixes and competes against Tata Consumer Products, iD Fresh Food and MTR. The reports added that the company’s promoters S Sudhakar and S Dinakar will continue to hold a minority stake. While the size of the deal is not yet public, the reports added that large legacy players in the consumer sector are facing tough competition from the local and digital-first brands that compete on pricing, quick commerce and direct distribution.
In a separate development, Orkla India, the owner of MTR and Eastern Spice brands, is exploring possible acquisitions. Reuters reported that the company is banking on quick-delivery platforms and demand for ready-to-eat meals as it looks to clock double-digit revenue growth.
The report noted that the company is on the lookout for more mergers and acquisitions. It has enough cash and is open to raising more money to fund deals, its top official told Reuters. The company, which is the Indian arm of Norwegian consumer goods group Orkla, aims to return to double-digit revenue growth in the current financial year, and expects the convenience foods segment to witness steady growth.
Last year, the group’s convenience foods business made up 33.4 per cent of revenue, an increase from 31.5 per cent a year earlier. The report noted that dealmaking in the consumer goods and retail sector reached a four-year high for January to September, led by the food and beverages (f&b) category.
As the company sharpens its focus on profitable network expansion, Reliance Retail is looking to bring its initial public offering (IPO) by 2028, as per media reports. The company is on an expansion spree, adding around 2,000 new stores annually on a net basis.
The reports added that the company has started repaying debt as part of balance sheet restructuring in the lead-up to the IPO. The company’s non-current borrowings fell from Rs 53,546 crore in the financial year 2024 to Rs 20,464 crore in FY25, the reports noted.
