India’s Reliance Industries is reportedly planning to set up a new subsidiary to house all of its consumer-facing brands, including those in food.
The new division will be named New Reliance Consumer Products, according to India’s Economic Times, which added the aim of the spin-off is to draw “specialised and focused attention” outside of the current retail-centric set-up.
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Reliance Industries is also seeking to attract a different set of investors to its FMCG brands with the move by showcasing its portfolio independently, rather than being shrouded within the existing retail division, the publication suggested.
Brands will be transferred to the new consumer division, with the restructuring also likely to include the consolidation of individual Reliance Industries’ companies, the Economic Times reported, adding the goal of the spin-off is also to increase the scale of the FMCG business and brands by early 2027.
Reuters, meanwhile, said India’s National Company Law Tribunal has approved the restructuring exercise, according to a document cited by the news agency and dated 25 June.
“This is a large business by itself requiring specialised and focused attention, expertise and different skill sets as compared to retail business,” Reliance Industries said in its request for approval to the Tribunal, the document quoted by Reuters said.
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By GlobalDataIt added: “This business also entails large capital investments on an on-going basis and can attract a different set of investors.”
The creation of the new subsidiary business unit will involve the transfer of the company’s consumer brands from its existing retail arm, according to Reuters, backing the observation made by the Economic Times.
Just Food has contacted Reliance Industries for confirmation of the plans.
Reliance Industries will hold an 83.56% stake in the new entity, Reuters said, as the publication suggested the company’s Campa Cola drinks brand competes with the likes of The Coca-Cola Co. and Pepsi, while the Indian firm’s snacks and confectionery lines compete for shelf space with giants such as Mondelez International.
Owned by billionaire Mukesh Ambani, Reliance Industries added Chuckles, On & On, Milky Punch and Tango to its portfolio of confectionery brands in 2023 by taking a majority stake in Lotus Chocolate Company.
It also bought a local confectionery business last year, The Ravalgaon Sugar Farm.
The company produces the boiled sweets brands Pan Pasand Gold, Cheer, Mango Mood, Coffee Break, Tutty Fruit and Assorted Center. It also makes the toffee products Choco Cream and Supreme.
