Reliance Industries Limited, commonly referred to as Reliance, is one of India’s largest conglomerates, with interests in a variety of industries, including petrochemicals, refining, oil, gas, and telecommunications. Founded in 1966, the company is currently led by Mukesh Ambani, who has a net worth of over $90 billion, making him the richest person in Asia and one of the wealthiest individuals globally.
In recent years, Reliance has been expanding its retail operations through its subsidiary, Reliance Retail. The company has over 12,000 stores across India, including supermarkets, hypermarkets, and specialty stores. Its retail network is a significant asset in the company’s efforts to revive the Campa brand and challenge the dominance of PepsiCo and Coca-Cola in the Indian beverage market.
Amulya Pandit, a Consultant at Euromonitor International, said, “Coca-Cola and Pepsi are unused to a nationwide challenge, and Reliance has the financial muscle and reach to challenge them with a local brand with high nostalgic value.”
The Campa brand of sugary sodas was first introduced in India in the 1970s and quickly became a popular drink among consumers. However, the brand disappeared from store shelves as PepsiCo and Coca-Cola expanded their operations in India following the liberalization of the Indian economy in the 1990s. Reliance acquired the Campa brand in 2020 for $2.7 million and is now relaunching it with a focus on undercutting the prices of its competitors.
Reliance plans to use its retail network to distribute Campa drinks to hotels, restaurants, and in-flight sales, as well as open its own or joint venture factories to produce the sodas. Currently, the production of Campa is outsourced to other companies. By bringing production in-house, Reliance can better control costs and quality.
To gain a foothold in the Indian beverage market, Reliance is heavily discounting the prices of Campa drinks in stores. For example, a two-liter bottle of Campa Cola is priced at 49 rupees (60 U.S. cents) in stores, nearly 50% lower than its label price and around one-third cheaper than similar-sized Coke and Pepsi bottles. The company is also offering smaller-sized bottles of Campa Cola and Coke for 10 rupees and Pepsi for 12 rupees, respectively.
Reliance’s aggressive pricing strategy is reminiscent of the company’s successful approach in the telecommunications industry, where it disrupted the market with cut-throat pricing to become the leading player. It remains to be seen whether Reliance can replicate this success in the beverage market, but the company’s track record and vast resources suggest that it could be a formidable competitor for PepsiCo and Coca-Cola in India.
