Reliance to restructure consumer products business into direct subsidiary

Reliance Industries Ltd said it will reorganise its consumer products business into a direct subsidiary, giving sharper focus to one of the conglomerate’s youngest growth engines as it seeks to challenge multinational rivals in India’s fast-moving consumer goods market.

“Reliance Consumer Products Ltd (RCPL) is set to become a direct subsidiary of RIL. This will consolidate all our consumer brands into a single, sharply focused company,” Isha Ambani, Executive Director of Reliance Retail, told shareholders at the company’s annual meeting.

She said the structure would allow the unit to operate independently, respond more quickly to changing consumer trends, and attract top talent with a clear mandate.

During her address, Isha presented the operational details, stressing that the company is well placed to seize India’s fast-growing consumption opportunity.

"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," she told shareholders.

Highlighting the strength of India’s middle class and rural markets, she said, “Our 350 million middle-class households have a combined purchasing power exceeding Rs 100 lakh crore ($1.2 trillion). They represent 600 million digitally-native and increasingly brand-conscious consumers who seek premium experiences at affordable prices. For the first time in India's history, rural markets, consisting of 900 million consumers, are driving 65% of the FMCG growth, with penetration growing at 35% annually. This combination of a rising middle class and accelerating rural adoption marks an unmissable consumption opportunity.”

She said creating RCPL as a separate company would sharpen focus and agility. “It will provide the independence to focus exclusively on its markets, products, and customers without competing for management bandwidth. This structure will enable sharper execution, faster innovation cycles, and deeper operational focus – all critical to winning in consumer markets,” she said.

RCPL has quickly emerged as one of India’s fastest-growing consumer businesses, she said. “In just 3 years, RCPL has achieved what took other companies decades. Last year alone, we had revenues of Rs 11,500 crore ($1.4 billion), making us the fastest-growing FMCG player in India,” she said.

Its flagship brands are already making a mark. Campa Cola now has a double-digit market share across many states, breaking a 30-year MNC duopoly, she said.

Campa Energy gained 2 million social media followers within 90 days, while the Independence brand has crossed Rs 1,000 crore ($117 million) in revenues. RCPL has also expanded overseas to West Asia, Sri Lanka and Nepal, and has started exports to West Africa.

“Our target is to enter at least 25 countries in the next 12 months, building an Indian consumer brands powerhouse with global reach,” Isha said, adding, “We believe that Brand India will shine bright globally when Indian consumer and tech brands conquer global markets.”