Reliance Industries‘ FMCG division achieved INR 3,000 crore in sales during FY24, its first full year of operations, according to a senior industry executive familiar with the development. Notably, the beverage brand Campa Cola alone contributed INR 400 crore to this substantial revenue milestone.
To provide context to Reliance Consumer Products’ (RCPL) performance, Emami, boasting five decades of operations, reported sales of INR 3,400 crore in FY23. Meanwhile, Colgate-Palmolive (India), the leader in the oral care market, achieved revenue of INR 5,226 crore in the same year, marking its eighth decade of operations.
Listed FMCG companies are still awaiting the declaration of financial results for FY24. RCPL formally began operations on November 30, 2022. RCPL, home to brands like Campa Cola and Independence, aims to continue the sales growth momentum, particularly in staples and beverages.
The company is considering raising between INR 500 crore and INR 700 crore this fiscal year from its parent company to establish bottling plants for Campa Cola. This initiative aims to enhance capacity in response to supply constraints.
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RCPL’s parent company is Reliance Retail Ventures, which also serves as the holding company for the group’s retail business. An executive, speaking on condition of anonymity, mentioned that RCPL aims to strategically locate the new bottling plants to effectively serve consumers nationwide, including kirana stores.
The executive mentioned that Reliance Consumer Products’ revenue for FY24 includes INR 1,000 crore generated from over 200,000 kirana stores, along with the remainder from Reliance Retail’s grocery store network. Additionally, the company has set an internal revenue target of INR 5,000 crore for this financial year.
“The parent company plans to inject a significant amount of capital into RCPL this year. While the exact figure is yet to be determined, it’s anticipated to fall within the range of INR 500 to INR 700 crore. This decision stems from the need to establish company-owned bottling plants, as the previous strategy of solely partnering with other bottlers proved ineffective for achieving a nationwide launch of Campa Cola,” explained the executive.
In 2022, Reliance acquired the then-defunct Campa brand for around INR 22 crore. Campa Cola is currently readily available in Andhra Pradesh, the country’s largest cola market, although supplies remain limited in most other areas, including Reliance Retail outlets.
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“Aside from essentials, RCPL’s primary line of business will be beverages. Since ordering equipment for bottling factories takes time, RCPL will shortly have the funding infusion needed to get things going,” the executive stated.
Queries directed at Reliance Consumer Products went unanswered.
RCPL bottles Campa Cola in collaboration with contract manufacturers and within a facility that also produces Sosyo carbonated soft drink in Gujarat, where RCPL holds a 50% stake. Additionally, the company partners with contract bottlers in Andhra Pradesh, West Bengal, Tamil Nadu, Uttar Pradesh, and Maharashtra, where it has an agreement with Ghodawat Consumer Products.
During the period spanning February to March 2023, Reliance Retail Ventures injected INR 277 crore into RCPL by opting to subscribe to fully convertible debentures.
According to documents submitted to the Registrar of Companies, this marked the first significant capital injection by the promoters into the enterprise. Additionally, the filings reveal RCPL’s intentions to venture into every FMCG category.
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