Under the joint venture agreement, RCPL holds a majority stake, while Udhaiyams’ erstwhile owners hold a minority stake in the company
Reliance Consumer Products or RCPL, the fast-moving consumer goods (FMCG) arm of Reliance Industries, has acquired a majority stake in Udhaiyams Agro Foods. Under the joint venture agreement, RCPL holds a majority stake, while Udhaiyams’ erstwhile owners hold a minority stake in the company.
The deal brings the food company and Tamil Nadu’s heritage nutrition brand, Udhaiyam, under RCPL’s fold, adding strength to the FMCG major’s branded staples portfolio. Through this acquisition, RCPL further reaffirms its commitment to the company’s core philosophy of promoting India’s heritage and legacy brands, it said in a regulatory filing.
“We are very excited to announce this joint venture, as it further strengthens RCPL’s presence in the branded staples space. This initiative also reaffirms our commitment to offering global-quality products to consumers at affordable price points, while promoting India’s legacy,” stated T Krishnakumar, Director, Reliance Consumer Products.
Udhaiyams Agro Foods, which operates under its highly popular flagship brand ‘Udhaiyam’, has a strong market presence in Tamil Nadu. The brand has established itself in key staple and food product categories, including rice, spices, snacks and idli batter, among others, supported by a wide distribution network.
“This partnership with RCPL opens up new opportunities for Udhaiyam. The brand has delighted consumers in Tamil Nadu for decades. With RCPL now taking charge of its expansion, we are confident that the goodness of Tamil Nadu and the rich heritage of the land will resonate with consumers across geographies, while adding value to their lives as we increasingly transition towards a healthier lifestyle,” highlighted S Sudhakar, Managing Director, Udhaiyams Agro Foods.
Following this acquisition, the erstwhile promoters of Udhaiyams Agro Foods, S Sudhakar and S Dinakar, will continue to hold a minority stake in the company. With more than 30 years of experience in the staples category and in scaling the packaged pulses business at Udhaiyams, they will continue with the company and support the next phase of growth, the official statement noted.
