RIL expects FMCG business to have Rs 1 lakh cr revenue in next 5 yrs, to have global presence

New Delhi: Encouraged by the success of its FMCG business, Reliance has ambitions to have a revenue of Rs 1 lakh crore in the next five years with global presence.

Moreover, the FMCG business will also be the "blueprint for expansion" into apparel, electronics, and other large and high-value consumer categories, Isha Ambani said at the RIL annual general meeting (AGM) on Friday.

Reliance Retail is demergering its fast-moving consumer goods (FMCG) business, Reliance Consumer Products Ltd (RCPL) into a separate company under Reliance Industries would unlock new potentials, she said.

Reliance, a new entrant into the FMCG business had crossed the revenues of Rs 11,500 crore (USD 1.4 billion), making it the fastest-growing FMCG player in India.

"Our near-term ambition is clear -- to be the fastest consumer brands company to reach Rs 1 lakh crore (USD 11.7 billion) in revenue within 5 years. Our long-term ambition is to become India's largest FMCG company with a global presence. This will make RCPL a big new value-creating engine for the Reliance Group, comparable to our retail business in size and profitability," Isha, who handles retail business of RIL, said.

The company, which has acquired a host of brands and also launched in-house brands ranging from soap to cola, "has emerged as one of the fastest growing FMCG companies in India".

It acquired consumer brands Tagz Foods and the launch of new variants under Campa, Independence, Alan's, Enzo, Ravalgaon, etc, to cater to evolving consumer preferences.

On the demerger of RCPL, Isha said as a separate company, it will give this business the independence to focus exclusively on its markets, products, and customers without competing for management bandwidth.

"It will provide the agility to respond quickly to changing consumer trends and competitive dynamics. It will also allow us to attract the best talent in the industry, offering them a clear mandate and an exciting growth platform," she said.

On the performance of FMCG business, she said its beverage brand Campa Cola "now holds double-digit market share across many states" and broke the "30-year MNC duopoly".

Reliance, which has entered into the fast-growing beverage market in August 2022, after acquiring Campa Cola, is expanding its presence across the country by setting up required infrastructure as supply chain, logistics network and bottling plants.

RCPL, which is directly competing with Coca-Cola and PepsiCo -- leading players in the cola segment -- has disrupted the segment with its aggressive pricing and higher margin to retailers. It has forced players to reduce prices in the selected markets where it is available.

Over its own daily essentials brand, Independence, Ambani said it has crossed Rs 1,000 crore in revenue.

"We started in India, have entered West Asia, Sri Lanka, and Nepal, and are now exporting to West Africa. Our target is to enter at least 25 countries in the next 12 months, building an Indian consumer brands powerhouse with global reach. We believe that Brand India will shine bright globally when Indian consumer and tech brands conquer global markets," she added.