Reliance Industries (RIL) has acquired soft drink brands Campa from Delhi-based Pure Drink group for Rs 22 crore as part of its strategy to scale up its FMCG business, The Economic Times said in a report on Wednesday. According to the report, the acquisition of the iconic Campa brand could pit the company against Pepsi and Coca-Cola in the beverages market.
The company is eyeing to relaunch the brand this year near Diwali. The product will be available for at Reliance Retail stores, JioMart, and Kirana stores.
The development comes days after Isha Ambani, director of Reliance Retail Ventures Ltd, announced in annual general meeting (AGM) of Reliance Industries on August 29 that the retail arm of the firm is set to foray into the FMCG segment.
“I am excited to announce that this year, we will launch our fast-moving consumer goods business. The objective of this business is to develop and deliver high quality, affordable products which solve every Indian’s daily needs,” she said.
With this, the retail arm of RIL will be competing with the likes of FMCG behemoths such as Hindustan Unilever, Nestle, Britannia, and others in an industry that is valued at over $110 billion in India.
The ET report also pointed out that the company is in advanced talks with an edible oil and namkeen brand, and a soap brand. The due diligence is going on currently.
“Reliance has identified almost two dozen potential brands which can be acquired or for joint ventures to strengthen the FMCG business. A couple of deals have already fallen through due to the high valuations sought. Reliance’s strategy is to go for small-sized deals valued at a few crores,” an executive told ET.
Reliance Retail already has a presence in the segment through its various private labels which are sold in the company’s grocery chain stores such as Reliance Smart, Reliance Mart, and its online grocery platform JioMart. Brands like Yeah!Colas and Snac Tac noodles are a few private label brands in FMCG segment by the company. The private labels (including in the fashion and lifestyle segment) contribute about 65 per cent to the group’s revenue.