Reliance Retail To Launch FMCG Business This Year, Says Isha Ambani


Reliance Retail Ventures Ltd. is set to foray into the fast-moving consumer goods segment in a bid to challenge giants like Hindustan Unilever Ltd.

“The objective of this business is to develop and deliver high quality, affordable products which solve every Indian’s daily needs,” the company’s director Isha Ambani announced at the 45th annual general meeting, on Monday.

Reliance, run by Indian billionaire Mukesh Ambani, is seeking to challenge some of the world’s biggest consumer groups like Hindustan Unilever, Nestle India Ltd., Coca Cola Co. and PepsiCo Inc., which have been operating for decades in India, with its new business plan.

Its consumer goods foray, under the vertical named Reliance Retail Consumer Brands, is on top of its existing network of 2,500 grocery outlets and ongoing expansion of JioMart e-commerce operations in India’s nearly $900 billion retail market—one of the world’s biggest. Forrestor Research pegs the market to grow to $1.3 trillion by 2024.

The country’s largest retailer has built a portfolio of brands such as Good Life, Desi Kitchen, Snac Tac, Bubbles, Yeah!, and Aw So Yum in the food and beverages space, according to its website. The personal care portfolio includes brands like Get Real, Safe Lite, Petals, Mothercare, and Jive, among others.

These brands are currently sold across its supermarkets and hypermarkets—Reliance Fresh and Reliance Smart. “They are also in talks to hire more distributors to take these products to mom-and-pop stores,” a New Delhi-based distributor told BQ Prime, on the condition of anonymity.

The All-India Consumer Products Distributors Federation, an apex body that represents about 4 lakh dealers and distributors, expects the entire economics of the domestic trade to change with the entry of Reliance.

“The Indian FMCG trade will witness steep competition with the entry of such a gigantic player,” said AICPDF national president Dhairyashil Patil.

Reliance Retail Ventures has seen 2.3 times jump in its revenue from operations to Rs 4,505 crore in FY23. Net profit of the country’s largest retailer nearly doubled to Rs 2,354 crore during the year under review.

“During the year, we strengthened our own brands’ presence by launching several new products across the categories of staples, home, personal care, and general merchandise,” said Ambani.

Own brands contribute to over 65% of the overall revenue of Reliance Retail.

During the presentation, Ambani said that the company will soon start marketing quality goods produced by tribals and other marginalised communities across the country.

Reliance also announced that it has collaborated with WhatsApp, owned by Meta Platforms Inc., to launch JioMart on its platform. This would enable WhatsApp users to browse and purchase groceries and other household products directly within the app.


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