Reliance Consumer Products (RCPL), the FMCG arm and a wholly owned subsidiary of Reliance Retail Ventures (RRVL) on Tuesday (3 January 2023) announced that it will acquire 50% equity stake in Gujarat-headquartered Sosyo Hajoori Beverages (SHBPL).
Sosyo Hajoori Beverages owns and operates a beverage business under the flagship brand 'Sosyo'. Sosyo was established in 1923 by Abbas Abdulrahim Hajoori. It is a heritage Indian brand with around 100 years of legacy in carbonated soft drinks (CSD) and juices. The 100 year old company is one of the leading players in the domestic soft drinks market.
The existing promoters, Hajoori family, will continue to own the remaining stake in SHBPL, said the company.
Currently, SHBPL is led by Abbas Hajoori and his son Aliasgar Hajoori, has several beverage brands in its portfolio including Sosyo, Kashmira, Lemee, Ginlim, Runner, Opener, Hajoori Soda and S'eau having launched over 100 flavours with its strong expertise in developing formulations. The Sosyo brand boasts a loyal customer base in Gujarat.
Isha Ambani, executive director of Reliance Retail Ventures, said, This investment helps us take forward our vision of empowering local heritage brands and presenting them with new growth opportunities. We welcome the desi power of centuryold Sosyo's heritage beverage brands to our consumer brand portfolio and are confident that our knowhow, consumer insights and retail distribution strengths will help accelerate the growth momentum of Sosyo.
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Reliance Industries said that RCPL aims to empower Indian consumers with a bouquet of indigenously developed consumer brands and products that offers superior value. The company's brand portfolio currently includes iconic beverage brand 'Campa' and packaged consumer products brand 'Independence' launched earlier this month. In addition, RCPL is creating a distinct and dedicated retail distribution network for its fast-expanding consumer brands portfolio, it added.
Abbas Hajoori, Chairman of Sosyo Hajoori Beverages, said, Combining our relative strengths, we would make the unique tasting beverage products of Sosyo accessible to all the consumers in India. It is a defining moment in our near 100-year journey in beverages.
With this joint venture, Reliance will further strengthen its portfolio in the beverage segment having already acquired the iconic brand Campa. In addition, Sosyo's expertise in formulations can be leveraged to develop unique value proposition for the product portfolio and consumers, the company stated in the press release.
On 29 December 2022, Relaince Industries announced that RCPL, the FMCG arm and a wholly-owned subsidiary of RRVL, will acquire 65,48,935 equity shares of LOTUS representing 51% of the paid-up equity share capital of LOTUS from the current promoter and promoter group of LOTUS at a price per share of Rs 113, aggregating to Rs 74 crore. RCPL and certain promoter group entities of LOTUS will subscribe to 5,07,93,200 non-cumulative redeemable preference shares of face value of Rs 10 each at par.
RRVL is a subsidiary of Reliance Industries (RIL) and the holding company of all the retail businesses under the RIL group. RRVL, through its subsidiaries and affiliates, operates more than 16,500 own stores and partners with over 2 million merchants across Grocery, Electronics, Apparel, Pharmacy, lingerie, home and furnishing, beauty and personal care. It also operates the largest network of omni-channel business through Jio Mart, Ajio, Netmeds, Zivame and other online channels. RRVL's FMCG subsidiary, Reliance Consumer Products Ltd shall provide a wide range of products under a versatile brand portfolio.
RIL is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail, and digital services.
On a consolidated basis, RIL's net profit fell 0.2% to Rs 13,656 crore on 37.3% increase in net revenue to Rs 230055 crore in Q2 FY23 over Q2 FY22.
Shares of Reliance Industries declined 1.13% to Rs 2,528.05 on the BSE.
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