Reliance spins off FMCG brands into new entity as IPO plans take shape: report

Mukesh Ambani’s Reliance Industries (RIL) has carved out its fast-moving consumer goods (FMCG) business into New Reliance Consumer Products Ltd (New RCPL), a new wholly owned subsidiary, as it lays the groundwork for a potential blockbuster initial public offering, The Economic Times reported.

The move consolidates over 15 home-grown and acquired brands, including Campa, Independence, Ravalgaon, Sosyo, SIL, and Velvette, under New RCPL.

These brands were previously managed through Reliance Retail Ventures, Reliance Retail, and Reliance Consumer Products Ltd.

New RCPL will now operate as a direct subsidiary of RIL, mirroring the holding structure of Jio Platforms.

The National Company Law Tribunal (NCLT), in an order dated 25 June, noted that the FMCG business is fundamentally distinct from retail operations and warrants dedicated management, significant ongoing capital investment, and the ability to attract a different class of investors.

Valued at ₹11,500 crore in FY25, Reliance’s FMCG portfolio has grown rapidly by undercutting rivals such as Coca-Cola, Mondelez, and Hindustan Unilever with prices 20–40% lower and by offering higher trade margins to kirana stores.

Campa, its flagship soft drinks brand, has already achieved double-digit market share in several regions and is distributed through over 3,200 partners to more than one million retail outlets, ET reported.

More than 60% of New RCPL’s current sales come from neighborhood stores. The company plans to expand nationally by March 2027, aiming to reach up to 600 million mass-market consumers.

By carving out its FMCG brands into a standalone unit, Reliance aims to unlock value in its consumer business and position it for focused growth under specialized leadership, a strategy similar to the one that helped Jio Platforms attract marquee investors ahead of its own fundraising milestones.