Reliance Consumer Products (RCPL), the FMCG arm of Reliance Industries, has acquired a majority stake in Chennai-based Udhaiyams Agro Foods, maker of staples, pulses, snacks and breakfast mixes, for an undisclosed amount, it announced on Thursday. Under a joint venture agreement between the two, RCPL will hold a majority stake, while Udhaiyams’ erstwhile owners S Sudhakar and S Dinakar, will continue to hold a minority stake in the company, RCPL said in a statement.
The company did not disclose the size of the acquisition, but people close to the development said it is similar to other mid-sized acquisitions by Reliance, such as Campa soft drinks and Velvette shampoos.
ET first reported the development in its December 15 edition.
With the acquisition, RCPL has widened its FMCG portfolio to also compete with players such as Tata Consumer Products, MTR and iD Fresh Foods in categories such as pulses and breakfast mixes. The Mukesh Ambani-backed RCPL’s existing grocery and staples portfolio includes beverages under Campa, Sure water and Spinner sports drinks, Sil jam, Lotus Chocolate and Alan’s Bugles chips, Velvette personal care, and Tira Beauty.
“This joint venture further strengthens RCPL’s presence in the branded staples space,” T Krishnakumar, director, Reliance Consumer Products, said in the statement.
S Sudhakar, managing director, Udhaiyams Agro Foods, said “the partnership with RCPL opens up new opportunities for Udhaiyams”. The brand has been operating for three decades.
Reliance Retail recently transferred its FMCG business into New RCPL, a direct subsidiary of Reliance Industries, as it looks to step up focus on its packaged consumer business. The firm has also announced a ₹40,000-crore agreement with the government to set up food manufacturing facilities across the country. It reported revenue of over ₹11,000 crore in FY25.
Recent similar deals include Honasa Consumer acquiring BTM Ventures, parent company of men’s personal care brand Reginald Men, while Godrej Consumer Products acquired male grooming brand Muuchstac last month.
An Imarc Group report noted that India’s packaged foods market would increase sales to $224.8 billion by 2033, up from $121.3 billion last year.
Source: Economic Times