Reliance Industries is sharpening its FMCG strategy by catering to India’s 600 million value-conscious consumers and deepening its ties with local kirana stores. T. Krishnakumar, Director of Reliance Consumer Products Ltd (RCPL), shared the company’s roadmap in an interview highlighting a vision focused on affordability, wide distribution, and brand revival.
“India has a population of around 1.4 billion. Among them, about 600 million fall under the value-conscious category. Our aim is to create high-quality products for this segment,” said Krishnakumar.
“No one has addressed this space on a national scale with a clear strategy. While local and regional players have tried, they haven’t been able to sustain it,” he added.
RCPL’s Expanding Portfolio
Launched in 2022 under Reliance Retail Ventures, RCPL has rapidly grown its portfolio through a mix of acquisitions and homegrown brands. Notable acquisitions include Campa Cola, Lotus Chocolate, Ravalgaon, Toffeman, Sil jams, Alan’s Bugles, and Velvette shampoo. Its Independence brand caters to the staples category.
The company has set a target to scale these brands nationally by March 2027.
“Scaling a product nationwide takes time—typically 24 to 30 months,” Krishnakumar noted.
Key Numbers and Market Performance
In FY25, RCPL reported revenues of ₹11,500 crore, with over 60% of sales coming from general trade channels. Both Campa and Independence crossed ₹1,000 crore in sales and reached over 1 million retail outlets.
“We ended last year with nearly 20% market share in beverages and staples. By March 2026, our goal is to grow that to 60–70%. Other categories will be scaled up in a structured manner,” he said.
A Playbook Built on Affordability and Kirana Networks
To attract price-sensitive buyers, RCPL has priced many of its products 20–40% lower than competitors, especially in soft drinks, chocolates, and detergents. Krishnakumar emphasized that affordability is a core pillar, especially amid weak urban consumption trends.
“I remain optimistic about the broader demand outlook in India. If you offer quality products at affordable prices, demand will hold strong,” he said.
The company has now crossed the milestone of 1 million retail distribution points. While expansion into premium segments isn’t off the table, affordability will remain the foundation.
“We’ll continue a mix of organic growth and acquisitions—but only where we see a turnaround opportunity. We’re not looking to overpay for acquisitions,” Krishnakumar added.
General Trade Over E-Commerce
Despite the digital boom, RCPL continues to prioritise traditional retail.
“General trade still accounts for over 90% of FMCG distribution. It’s the backbone of the sector. While we do see omni-channel as the way forward, e-commerce is not our primary channel right now,” he clarified.
