Indian Retailer Reliance to Acquire $6.5 Billion Worth of Brands

Indian Retailer Reliance to Acquire $6.5 Billion Worth of Brands
Photo: https://www.nextbigbrand.in/ril-to-hit-200-billion-m-cap/ 16.05.2022 144

Indian billionaire Mukesh Ambani's Reliance plans to create a portfolio of 50-60 brands within six months.

Reliance, India's largest retailer, will acquire dozens of small grocery and non-food brands. The company aims to build its own $6.5 billion business to challenge foreign giants such as Unilever, two sources told Reuters.

Indian billionaire Mukesh Ambani's Reliance plans to build a portfolio of 50 to 60 grocery, household and personal care brands within six months and is hiring an army of distributors to take them to mom-and-pop stores and bigger retail outlets across the nation.

In addition to the Reliance Retail Consumer Brands vertical, which will promote consumer products, Ambani also owns a chain of more than 2,000 grocery outlets and JioMart shopping platform.

Reliance is finalizing talks with about 30 popular niche local consumer brands to acquire them or form joint ventures, said a source familiar with the company's business planning.

According to Reuters sources, Reliance has set a goal to achieve 500 billion rupees ($6.5 billion) in annual sales within five years. 

The company is seeking to challenge such giants as Nestle, Unilever, PepsiCo Inc and Coca-Cola, which have operated in India for decades.

Unilever’s India unit, for example, reported sales of $6.5 billion in the fiscal year ending March 2022, and says that 9 out of 10 Indian households use at least one of the company's brands.

LinkedIn profiles reveal how Reliance is ramping up efforts to expand its consumer business. In recent weeks, the company has hired senior executives from Danone and Kellogg Co. for quality control and sales.

One job ad by Reliance said the company has shortlisted products for initial launches in groceries, personal care, beverages and chocolates and is hiring mid-level sales managers for businesses in more than 100 cities and towns.

Among the main  tasks of such executives will be to appoint distributors and manage merchants, the ad stated.

food markets  India 

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