Reliance Consumer Products (RCPL) has made a significant move in the packaged foods space by acquiring SIL Food India, a brand known for its range of products such as cooking pastes, jams, mayonnaise, baked beans, and Chinese sauces.
The acquisition process has been successfully completed, and Reliance Consumer aims to expand SIL’s presence beyond its core markets in the West and South of India, targeting national distribution. This strategy positions Reliance to directly compete with established FMCG giants like HUL, Tata Consumer, and Cremica, further solidifying its foothold in the competitive FMCG sector, a senior company executive shared with ET.
The acquisition involves the purchase of SIL’s product brands from its current owner, Food Service India. SIL operates manufacturing facilities in Pune and Bengaluru.
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SIL Food, which traces its origins back 75 years to its founding as James Smith & Co., has undergone several changes in ownership. In 1993, it was acquired by Marico Industries, only to be sold later to Scandic Food India, a subsidiary of Denmark’s Good Food Group. In 2021, Food Service India, known for its supply of seasonings, spices, and condiments to the hospitality industry, acquired SIL Foods.
With this acquisition, Reliance Consumer plans to leverage its ongoing strategy of offering competitively priced products, providing higher trade margins to retailers, and revitalizing legacy brands. It’s worth noting that RCPL is acquiring only SIL’s product brands, not its manufacturing facilities or the company itself.
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This acquisition adds to Reliance’s growing portfolio, which includes recent purchases like Ravalgaon and Toffeeman confectionery, Campa soft drinks, Raskik beverages, Sosyo carbonated drinks, and Lotus chocolates.
