Reliance Consumer Products Ltd, the FMCG subsidiary of Reliance Retail Ventures Ltd, launched its packaged goods brand Independence in Gujarat, hitting the territory of rival Adani Wilmar Ltd.
Staples, processed foods, as well as other everyday necessities, including sugar, dal, biscuits, sunflower and groundnut oil, besan, wheat flour, as well as bottled water, would all be sold by Independence under several categories. For the time being, its items will be sold at Kirana stores in a few markets throughout the state.
The company will compete for market share with companies like Tata Consumer Products Ltd, Patanjali Foods, as well as ITC Ltd., in addition to Adani Wilmar.
As they compete in similar markets to Reliance, analysts said the move by Reliance is terrible news for incumbents, particularly Adani as well as Patanjali, and, to some extent Tata Consumer.
“In the FMCG space, it takes a lot of time for new players to impact as shelf space in Kirana is limited, and there are very entrenched incumbent brands,” stated Abneesh Roy, Nuvama Wealth Management’s executive director of institutional equities.
However, Roy believes the market is large enough to support three to four firms.
Even as it prepares for a nationwide rollout, the corporation intends to build Gujarat as a “go-to-market” state to steady execution for its FMCG sector.
“The company plans to develop Gujarat as a ‘go-to-market’ state to create excellence in execution for its FMCG business as it prepares for a national rollout for the brand. Independence products are tailor-made with a distinct understanding of Indian consumer needs and are sure to find a place in Indian households, as they are not just made in India but made for India,” said Reliance in the announcement.
Reliance Consumer is expanding its footprint in India’s fast-moving consumer products industry, where it previously had a limited presence through numerous private labels sold at Reliance Retail outlets.
Some of these brands are also available on the open market.
Reliance has also attempted to purchase local brands in order to increase its scale as well as footprint across FMCG categories. For example, it purchased the soft drink brand Campa earlier this year.
“I am happy to announce the launch of our own FMCG brand, Independence, which brings a wide choice of high-quality and affordable products, including edible oils, pulses, grains, packaged foods, and other daily need products,” the director of Reliance Retail Ventures, Isha Ambani, stated.
To provide top-notch items as well as give its partners better business chances, the organization is working with trade partners, including manufacturers and kirana retailers. In the next months, the company plans to extend the launch to FMCG stores all over Gujarat.
The loud integrated launch is accompanied by outdoor as well as print, radio, and local television advertisements, as well as sampling and visibility operations on the ground in Ahmedabad.
Ambani stated at the company’s 45th annual general meeting earlier this year that Reliance would expand the market presence of its private labels while introducing new fast-moving consumer brands.
Ambani said, “I’m excited to announce that this year we will launch our fast-moving consumer goods business. The objective of this business is to develop and deliver products that solve every Indian’s daily needs, with high-quality products at affordable pricing.”
The retail businesses owned by the multibillionaire Mukesh Ambani-led Reliance Industries conglomerate are all held by Reliance Retail Ventures Ltd. With the value of sales as well as services at Rs 1,99,749 crore in FY22, it was virtually a Rs 2 trillion corporation.