July 3, 2025
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Reliance to Restructure FMCG Business Under New Entity – IPO on the Horizon
Mukesh Ambani-led Reliance Industries Ltd (RIL) is set to consolidate all its fast-moving consumer goods (FMCG) brands under a new company, New Reliance Consumer Products Ltd (New RCPL). This strategic move will pave the way for an eventual IPO, following a structure similar to Jio Platforms Ltd.
Currently, Reliance’s FMCG products are spread across three entities — Reliance Retail Ltd (RRL), Reliance Retail Ventures Ltd (RRVL), and Reliance Consumer Products Ltd (RCPL). The new reorganisation aims to centralize these operations, ensuring sharper focus and positioning the unit to attract sector-specific investors.
Strategic Intent & IPO Roadmap
Chairman Mukesh Ambani has already indicated IPO plans for both retail and telecom segments. The FMCG reorganisation is designed to enhance valuation and facilitate a smooth listing process by separating it from the larger retail business. Sources suggest the spin-off will help unlock better value and may command premium multiples.
RRVL currently holds an estimated valuation of over $100 billion, potentially making any IPO a landmark event. The FMCG arm alone, valued at Rs.11,500 crore in FY25, comprises more than 15 brands such as:
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Campa (Soft Drinks)
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Independence (Packaged Grocery)
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Ravalgaon (Confectionery)
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Sosyo (Regional Beverages)
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SIL (Jams & Sauces)
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Velvette (Shampoos)
RCPL products are priced 20–40% below major rivals like Coca-Cola, Mondelez, and Hindustan Unilever — a value-driven strategy supported by superior trade margins.
Operational Strategy & Consumer Focus
RCPL’s Director and FMCG Head, T. Krishnakumar, revealed plans to reach over 600 million mass-market consumers and deepen partnerships with local kirana stores by 2027.
The reorganisation will take place in four steps:
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Transfer RRL’s FMCG brands to RRVL via slump-sale
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Merge RCPL into RRVL
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Demerge FMCG business from RRVL to Tira Beauty Ltd (currently inactive)
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Rename Tira Beauty as New RCPL, which will function as a fully operational FMCG entity
The Mumbai NCLT has instructed RRVL to conduct meetings with shareholders and creditors for approval. Since consents were submitted in advance, RRL, RCPL, and Tira Beauty won’t need to hold separate meetings.
What Lies Ahead
New RCPL will manage the manufacturing, distribution, sales, and marketing of FMCG products, while also investing in subsidiaries and JVs in the sector. With growing capital deployment and an aggressive pricing model, this move could reshape India’s FMCG landscape — and prepare Reliance for one of its most significant public listings yet.
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