Reliance FMCG arm eyes Rs 1 lakh cr revenue in five years, says Isha Ambani

Reliance Retail targets over 20% revenue growth over next three years

Reliance Industries is sharpening its consumer play by carving out its fast-growing FMCG and retail brands into a standalone unit, a move Isha Ambani said will give the business exclusive focus on markets, products, and customers. Reliance expects the FMCG business to hit a revenue of Rs 1 lakh crore in five years, making it the fastest FMCG business to reach this milestone.

" India's consumer market is a $2 trillion high-growth opportunity, expanding at over 8% annually. We need a strategic approach to seize this opportunity,” Reliance Retail Director Isha Ambani said during the conglomerate's 48th annual general meeting on August 29.

The comments come as the company plans to consolidate brands in apparel, fashion, food, personal care, and beverages that are currently spread across Reliance Retail Ltd, Reliance Retail Ventures Ltd and Reliance Consumer Products Ltd (RCPL), into a new entity.

"As a separate company, RCPL will give this business the independence to focus exclusively on its markets, products, and customers without competing for management bandwidth. It will provide the agility to respond quickly to changing consumer trends and competitive dynamics. It will also allow us to attract the best talent in the industry, offering them a clear mandate and an exciting growth platform," Ambani told shareholders in her prepared remarks.

The move comes as India sees an increase in aspiration led buying in both urban and rural markets, with the urban audience gravitating towards premium products while the rural buyers pivot towards branded offerings.

"For the first time in India's history, rural markets, consisting of 900 million consumers, are driving 65% of the FMCG growth. They are adopting global-quality branded products faster than urban markets, with penetration growing at 35% annually. This combination of a rising middle class and accelerating rural adoption marks an unmissable consumption opportunity," Ambani added.

The  country's 350 million middle-class households have a combined purchasing power exceeding Rs 100 lakh crore ($1.2 trillion) and that they represent 600 million digitally native and increasingly brand-conscious consumers who seek premium experiences at affordable prices.

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