Reliance Industries’ fast expanding consumer goods arm is moving closer to a significant acquisition in the packaged food space. Reliance Consumer Products Ltd is understood to be in advanced discussions to acquire a majority stake in Chennai based Udhaiyams Agro Foods, a staples and ready to cook foods company with annual revenues of around ₹668 crore, according to people familiar with the matter.
While the valuation and exact stake size remain under negotiation, sources say the talks have progressed beyond preliminary stages. If concluded, the transaction would give Reliance controlling interest, with Udhaiyams’ promoters expected to retain a minority holding to ensure continuity in day to day operations and brand stewardship.
Udhaiyams Agro Foods has built a strong footprint across South India with a wide portfolio that includes rice, flours, snacks, breakfast mixes and other ready to cook offerings. The company is known for its deep reach into regional markets and a distribution network that caters largely to value conscious households. Its brands enjoy high recall in Tamil Nadu and neighbouring states, particularly in staples and breakfast categories.
For Reliance, the proposed acquisition fits into a larger playbook of backing regional food brands and scaling them nationally using its retail muscle, sourcing capabilities and supply chain. Over the last few years, Reliance Consumer Products has steadily expanded across beverages, daily essentials and packaged foods, positioning itself as a challenger to established FMCG players.
Industry executives say Udhaiyams could strengthen Reliance’s presence in segments where competition from brands such as MTR Foods, iD Fresh Food and Tata Consumer Products is intensifying. The ready to cook and staples market has seen rising demand as urbanisation, smaller households and time constrained lifestyles push consumers towards convenient meal solutions.
The talks also come at a time when deal activity in India’s food sector is picking up, with large corporates seeking scale and regional brands looking for capital and wider distribution. While neither Reliance nor Udhaiyams has made an official announcement, a closure would mark another step in Reliance Consumer Products’ ambition to build a pan India food portfolio anchored in everyday consumption.
