Reliance Retail Ventures is injecting INR 300 crore in equity into its recently established fast-moving consumer goods business, known as Reliance Consumer Products (RCPL). This investment is being made through optionally fully convertible debentures (OFCD), with INR 277 crore having already been infused into the company, as indicated by RCPL’s latest fiscal year financial report. Notably, this marks the initial significant capital injection from the company’s promoters into the venture.
Reliance Retail Ventures serves as the parent company overseeing all retail operations within the Reliance Industries conglomerate. The allotments took place on February 1 and March 31.
“During the period, the company (RCPL) obtained approval from its shareholders to offer, issue and allot up to 300,000,000 unsecured zero coupon OFCDs of face value of INR 10 each to its existing holders of equity share on right basis,” said the filing by RCPL.
RCPL has an authorized share capital of INR 1 crore, with an issued, subscribed, and fully paid-up capital of INR 1 lakh. The company commenced its operations on November 30, 2022.
The report additionally revealed that RCPL invested INR 200 crore to acquire a 50% stake in Gujarat’s Sosyo Hajoori Beverages. This joint venture aims to bolster RCPL’s footprint in the beverage sector, following its acquisition of the Campa brand.
As of the time of press, an email directed to RCPL had not received a response.
According to an industry executive, Reliance Retail Ventures intends to inject additional funding into RCPL during this fiscal year as part of its plan to expand the FMCG business on a national scale.
“The company has aggressive plans to enter each and every category since FMCG is its latest bet,” said the executive, who did not wish to be identified. Reliance Retail Ventures director Isha Ambani recently said the FMCG business made a strong start by entering several categories through multiple brands and strategic partnerships.
