By Consultants Review Team
Reliance Retail plans to transfer the majority of its fast-moving consumer goods (FMCG) brands, including Campa and numerous well-known private labels, to its newly founded FMCG unit, Reliance Consumer Products Ltd (RCPL).
This change attempts to swiftly develop the firm while maintaining a devoted focus. The private labels engaged include Snactac, Puric, Glimmer, Enzo, and Get Real. In addition, RCPL intends to set up four to five unique bottling factories for Campa by acquiring bottling equipment and leasing it to partners who would handle operations. According to the individuals cited in the paper, the corporation is presently negotiating to finalize these deals.
Expansion Plans
These initiatives come as Reliance Retail Ventures plans to invest up to Rs 3,900 crore in RCPL through a combination of stock and loans. RCPL has just received board approval for this capital injection.
Once finished, this would be Reliance Retail's largest investment in the FMCG industry since its inception in November 2022. Reliance Retail Ventures, a wholly-owned subsidiary of Reliance Industries, acts as the holding company for all of the group's retail operations, including RCPL.
According to the article, a top industry official stated that "an internal transfer of the brands through means like licensing will be undertaken so that RCPL becomes the sole FMCG entity owning the brands and selling them."
The executive stated that many smaller private brands held by Reliance Retail will remain under its cover since they will not be offered to public trade. Campa's availability will grow with the construction of new bottling facilities, eliminating the present bottling capacity constraints that have hampered its retail development, according to the CEO, as reported.