Mukesh Ambani’s company Reliance Industries is now making its FMCG business a separate company. This work may be completed this year. The company is receiving the necessary approval from the government for this. This business is currently part of Reliance Retail, but soon it will be a separate unit of Reliance Industries. In a conference call following the results of the company’s Q1 FY2025, it was said that Reliance Retail’s FMCG business would be transformed into a new independent company.
Dinesh Taluja, CFO and corporate development head of Reliance Retail Limited, said that the company has registered an annual growth of 11% annually in Q1. Both the grocery and fashion segment have performed leaders in the market, while the consumer electronics segment has had a slight impact since the onset of monsoon. He said that the business of the company has been diverse in many categories, which has led to the work continuously.
The company has opened 388 new stores in this quarter and now the total number of Reliance Retail’s total stores has increased to more than 19,600. At the same time, an annual increase of 16% has been recorded in the number of transactions. The CFO also said that Reliance’s FMCG business is growing rapidly, and its revenue in Q1 was ₹ 4,400 crore, which is almost twice as much as last year.
Reliance says about 70% of its FMCG products are sold from small grocery stores across the country. Although the company has its own large shops (B2C and B2B), the company has also created its own separate distribution network, which is operating all over the country.
During the IPL this year, Reliance launched a high decibel campaign of Campa Cola brand. The impact is that people are now remembering this brand more than ever. The company believes that sales of campa and other products will increase further in the coming days.
Reliance is building new factories and research laboratories in many parts of the country. Automation and new technology will be used in these places. This will also improve the quality of the product and reduce the cost. The purpose of the company is to create products that people like and cheap.
Reliance has said that its FMCG and retail business are still working separately, but after the demerger, these will become completely different companies. Both businesses will work at a professional distance from each other. This FMCG business soon "New Reliance Consumer Products Limited (RCPL)" Will work by name, which will include brands like Campa Cola.
There will be many benefits to Reliance Retail’s FMCG business being a separate company. The company will be able to focus more on its products and brands and prove itself better in the market. This will also benefit investors as they will have the opportunity to invest in a clean and different business.
With this step, Reliance wants to compete directly to big companies like HUL and ITC. Mukesh Ambani’s purpose is to achieve great success in FMCG, as he revolutionized telecom with Jio.
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