The reports note that the new entity will be known as New Reliance Consumer Products (New RCPL), and will be a direct subsidiary of Reliance Industries or RIL
In a move to attract specialised investors and provide focused attention to the consumer brands business, Reliance Industries or RIL is looking to group all its fast-moving consumer goods (FMCG) brands into a new company, as per the reports. The company is embarking on a restructuring exercise.
The company’s products in the consumer segment currently lie with Reliance Retail Ventures of RRVL, Reliance Retail or RRL and Reliance Consumer Products or RCPL, the reports noted, while adding that the new entity will be known as New Reliance Consumer Products (New RCPL). It will house the FMCG brands and be a subsidiary of RIL.
The reports emphasised that the move will support attracting a different set of investors. The consumer brands business is one of building brands and is a large business by itself. The reports cited that it requires specialised and focused attention, different skillsets and expertise as compared to retail business.
The restructuring exercise is being seen as a move to help ready the retail business for a share sale by spinning off the FMCG business, as per the reports, which noted that Mukesh Ambani has already signalled initial public offering (IPO) plans for the group’s telecom and retail businesses. The reports mentioned that the FMCG business was valued at Rs 11,500 crore in the previous financial year (FY25).
The FMCG business features over homegrown and acquired brands like Campa, Independence. The National Company Law Tribunal (NCLT) document showed that the business also entails large capital investments on an ongoing basis and can lure a different set of investors, the reports pointed out.
