Reliance to acquire several brands to build its $6.5B consumer goods biz

Reliance to acquire several brands to build its $6.5B consumer goods biz

Reliance Industries, an Indian multinational conglomerate, is planning to build a portfolio of 50-60 personal care, grocery, and household brands within six months and hiring a fleet of distributors to develop its own consumer goods business which, as per sources, is worth $6.5 billion.

According to sources, the company is looking to launch a new arm named ‘Reliance Retail Consumer Brands’ which will come on top of its brick-and-motor outlet network of nearly 2,000 grocery stores and its e-commerce platform JioMart.

Furthermore, the company is in the last few steps of negotiations with around thirty popular local brands to entirely acquire them or establish joint venture collaborations for sales.

However, the total investment to be made by Reliance to acquire brands is not stated clearly yet, but the company had set a target to achieve $6.5 billion of annual sales from the business in the upcoming five years.

With the new plans of expansion, Reliance is likely to become a challenge for some of the world’s largest consumer groups like Unilever, Coca-Cola, PepsiCo Inc and Nestle.

As a retail giant, the company still accumulates maximum consumer goods revenues by distributing or selling products of other competitors at its own retail outlets and supermarket stores.

LinkedIn Profile of Reliance has given insights that how it is ramping up efforts for the expansion of its consumer business. The company has hired some senior executives from well-renowned companies like Kellogg CO and Danone for sales and quality control.

One of the Linked job ads by Reliance stated that it had considered, personal-care, chocolates beverages, and staples as retail categories for initial launches and is looking forward to appointing mid-level sales managers for business in 100 plus cities and towns.

Source Credit : https://economictimes.indiatimes.com/industry/cons-products/reliance-industries-to-acquire-dozens-of-brands-in-6-5-bln-consumer-goods-play/articleshow/91574946.cms