RRVL goes on a shopping spree; aims to strengthen its FMCG play

Reliance Retail Ventures has stepped out to shop as it looks to enter the country’s fast-moving consumer goods (FMCG) space. It is currently in advanced discussions with multiple FMCG brands, which include Sosyo Hajoori — an aerated drinks manufacturer and marketer in North and West India.

It is also in talks with another aerated drinks major Kalimark, which sells beverages under the brand name Bovonto as well as Green Fizz Beverages, an aerated drinks firm based in East India, according to a source.

Reliance Retail Ventures is also exploring possibilities of a joint venture with all these three companies. It is also looking at acquiring or a joint venture with a tapioca sago (sabudana) brand called Varalakshmi. It has recently acquired beverages brand Campa from Pure Drinks for Rs 22 crore and a cosmetics brand — Insight Cosmetics — as well, said the source.

“As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis.

 We have made and will continue to make necessary disclosures in compliance with our obligations under Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 and our agreements with the stock exchanges," a company's spokesperson said in an email response. 

This move by the Mukesh Ambani-led retailer comes post its annual general meeting where Isha Ambani, director at Reliance Retail Ventures, announced that it is foraying into the FMCG space.

“The objective of this business is to develop and deliver high quality, affordable products which solve every Indian’s daily needs,” Isha Ambani said.

She added, “As part of our commitment to India’s rich culture and heritage, we will soon start marketing quality goods produced by tribals and other marginalised communities. This will not only provide these communities gainful opportunities for employment and entrepreneurship but also help preserve the incredibly rich talent, skill sets and knowledge base of our traditional Indian artisans, especially women.” 

The company is also in initial stage talks with SG Corporates for Bindu Beverages as it looks to strengthen its FMCG play.

It is strengthening its play in the beverages space by looking at acquisitions and JVs with regional brands. It also has its own brands in the beverages space called Yeah! And Bubbles.
 

Reliance Retail Ventures is also in the process of taking its private label brands sold at its supermarkets and hypermarkets, Reliance Fresh and Reliance Smart, to general trade. The company had internally set a target of Rs 50,000-crore turnover from the FMCG business. 

The products, which it plans to sell, are pulses and grains, edible oils, flour, dry fruits, spices, pickles, idli dosa batter and snacks. They also include biscuits, namkeens and sweets along with ready-to-cook meals, ketchup, jams and carbonated drinks, among others.

Brands, which are in the food space include Good Life, Best Farms, Desi Kitchen, Snac Tac, Yeah!, Healthy Life, Aw So Yum, Aarambh and Kaffe.

In the non-food space, it has entered categories like soaps, shower gels, hand wash, face wash, hair oils, talcum powder, sanitisers, diapers, toothpaste, toothbrush and nail enamel

The personal care portfolio includes brands like Get Real, Safe Lite, Petals, Mothercare, Calcident, Glimmer, Slimmer, Graphite and Jive.

The home care portfolio includes toilet cleaners, floor cleaners, utensil cleaners, glass cleaners, detergents, agarbattis and camphor balls. In home care, brands which are hitting the shelf include My Home, Enzo, Snug, Shieldz and Samvaad.