Mukesh Ambani is going to do something big before IPO, this trick will surprise everyone
Mukesh Ambani -led Reliance Industries is going to play big bets once again. The company is preparing to transfer the brands of its fast moving consumer goods (FMCG) unit to a new company. There is speculation about this step that this mega IPO is a big strategic move before launch, which can shake the entire FMCG industry.
Actually, Mukesh Ambani is ready to create a panic of Reliance Retail in the market soon. This time his target is fast increasing FMCG Sector. Reliance Industries is now going to transfer its consumer brands to a separate unit, which is being considered a big strategy to prepare the land of the upcoming mega IPO.
What is the whole plan?
Reliance Consumer Products Limited (RCPL), which is a subsidiary of Reliance Retail Ventures, will now take over the responsibility of operating brands and FMCG business. The company has passed the proposal in the board meeting that its existing food, home and personal care brands will be transferred to RCPL. With this, this unit will enter the FMCG market with a different and strong identity.
Reliance's FMCG products are currently present under three different units Reliance Retail Ventures Limited (RRVL), Reliance Retail Limited (RRL) and Reliance Consumer Products Limited (RCPL). But now the company is going to bring all these FMCG brands a new unit under New Reliance Consumer Products LTD (New RCPL). This unit will be directly the subsidiary of Reliance Industries Limited (RIL), just as Jio Platforms LTD.
IPO preparation or market game changer?
It is believed that preparations for this spin-off are being made to prepare the land of a large public issue (IPO) of Reliance. This step will not only attract investors, but will also help the company to increase its brand portfolio further aggressively.
Which brands will be included?
Under this new unit, under the 'Independence' brand, a large range of food products, Kesh Kanti like herbal personal care products, soft drinks, snacks, honey, and dozens of brands like domestic cleaning products will be included.
What does expert panel say?
Market experts say that this trick is not just for the IPO, but is part of the plan to establish Reliance as a big and reliable player in the FMCG sector. Given the speed with which the consumption of FMCG products in middle class and rural markets is increasing, this step can prove to be a game changer for the company.
Travel from retail to FMCG
Reliance Retail has already maintained a strong hold through its stores across the country. Now keeping the FMCG brands in a separate unit, the company wants to supply and create a marketing network on a large scale across the country, which can make the competition and difficult for competitors.
Business of Rs 11,500 crore, 15+ brands
Reliance's FMCG business has reached a price of Rs 11,500 crore in FY25. This portfolio consists of more than 15 domestic and acquired brands, such as:
- Campa soft drink category
- Independence Packaged Grocery Products
- Ravalgaon traditional confectionery
- Sil jam and sauce brand
- Sosyo regional beverages
- Velvette shampoo and personal care products
Low price, higher profits
RCPL produces, distribution and marketing the products. The company's strategy is different from the rest of the veteran brands. The prices of its products are cheaper by 20-40% than competitors like Coca-Cola, Mondleese and Hindustan Unilever. Not only this, Reliance also gives more trade margins to retailers, making it a more attractive option for small and medium traders.
Source: www.tv9hindi.com
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