New Reliance Consumer Products Ltd: Mukesh Ambani-led RIL to group all its FMCG brands under new company; IPO plans in works

Billionaire Mukesh Ambani-led Reliance Industries Ltd (RIL) plans to consolidate its fast-moving consumer goods (FMCG) brands into a new entity. The new entity, to be named New Reliance Consumer Products Ltd (New RCPL), will operate as a direct subsidiary of RIL, similar to Jio Platforms Ltd.The FMCG products are presently managed by Reliance Retail Ltd (RRL), Reliance Retail Ventures Ltd (RRVL), and Reliance Consumer Products Ltd (RCPL). Currently distributed across its retail ventures, this reorganisation aims to provide dedicated attention to these brands whilst attracting sector-specific investors, according to an ET report.Reliance Industries Limited's chairman Mukesh Ambani has signalled intentions for initial public offerings of retail and telecommunications divisions.The restructuring will facilitate the involvement of a distinct investor base, as stated in the June 25 National Company Law Tribunal (NCLT) order, which was issued following RIL's restructuring application.Also Read | Betting big on India! US giant JPMorgan leases office space in Mumbai’s Bandra-Kurla Complex for Rs 1,000 crore; total rental may hit Rs 2,500 croreAccording to the order quoted by the financial daily, "The consumer brands business is one of building brands, managing the entire product lifecycle from research, development, manufacturing, distribution and marketing."

The order further notes that this substantial operation requires specialised attention, expertise and distinct competencies compared to retail operations.

RIL’s FMCG Business Restructuring

A source familiar with company strategy told ET that the restructuring will facilitate the retail division's stock market debut by separating the FMCG operations, which could command premium valuations. According to recent RIL data, RRVL's valuation exceeds $100 billion, potentially making any future public offering amongst the most substantial in recent history.The FMCG operations, valued at Rs 11,500 crore in FY25, includes more than 15 proprietary and purchased brands. These include Campa (soft drinks), Independence (packaged grocery), and Ravalgaon (confectionery). Additional acquisitions comprise SIL for jams and sauces, regional beverage maker Sosyo, and the Velvette shampoo brand.

"This business also entails large capital investments on an ongoing basis and can attract a different set of investors," according to the NCLT document.

"The consumer brands business is not part of the retail business and it is proposed that this business is housed in a direct subsidiary of RIL."RCPL, which handles manufacturing, distribution and marketing functions, offers products at prices 20-40% below competitors like Coca-Cola, Mondelez and Hindustan Unilever, while providing enhanced trade margins.T Krishnakumar, RCPL director and group FMCG chief, had informed ET about their plan to target 600 million consumers in the mass segment whilst maintaining strong relationships with local shops through profitable margins.

He indicated the organisation's aim to expand their FMCG operations nationwide by March 2027.RRL and RCPL operate as subsidiaries under RRVL, which serves as the retail business holding company and functions directly under RIL.

New Reliance Consumer Products

The reorganisation will proceed in four distinct stages. Initially, RRL's FMCG brands will transfer to parent RRVL through slump-sale. Subsequently, RCPL will combine with RRVL. Following this, the unified "consumer brands business undertaking" will separate from RRVL and move to Tira Beauty Ltd, presently an inactive company.

Tira Beauty will subsequently be designated as New Reliance Consumer Products (New RCPL) as an ongoing enterprise.Also Read | India laps up discounted crude: RIL, Nayara Energy get big chunk of Russia’s flagship oil exports; Reliance world’s single biggest buyer of UralsThe Mumbai NCLT bench instructed RRVL to organise meetings with its 14 equity shareholders and creditors to secure approval for the proposed "composite scheme of arrangement". Based on submitted affidavits of consent, meetings for shareholders of RRL, RCPL and Tira Beauty were deemed unnecessary."New RCPL will carry on the business of manufacturing, distribution, selling and marketing of multiple products under FMCG category and making investments in subsidiaries and joint ventures engaged in FMCG category retail business," as per the order. "On consummation of this scheme, New RCPL will become a direct subsidiary of RIL."The company reported that kiranas and general trade contributed over 60% of the Rs 11,500 crore revenue in FY25.

The company's earnings call revealed Campa's achievement of double-digit market share in certain regions, with products available across more than one million retail outlets through a distribution network exceeding 3,200 partners.The NCLT division bench, comprising justice VG Bisht and technical member Prabhat Kumar, additionally instructed the companies to provide details regarding corporate and performance guarantees, along with information about any existing contingent liabilities.Also Read | ‘Biggest risk of my life’: Mukesh Ambani says even if Reliance Jio would have failed, it would have been ‘worth it’; told board ‘in worst case…’