Reliance acquired a 50% stake in Sosyo Hajoori Beverages, also took a controlling stake in Lotus Chocolate for Rs 74 crore and dozens of brands in $6.5 billion consumer goods.
What is happening: Reliance Consumer will buy dozens of modest grocery and non-food brand names as the Indian retail giant plans for a big push in consumer goods business while they work to develop their own $6.5 billion consumer goods sector to compete with global giants like Unilever.
In furtherance with such plans Reliance is in late-stage talks with over 30 brands for deals and plans to build a portfolio of 50 to 60 grocery, household, and personal care brands within six months
Why it matters: Move comes out of the ongoing expansion of "JioMart" e-commerce operations in India's nearly $900 billion retail market, which happens to be one of the world's biggest.
As per sources, Reliance had set a goal to achieve 500 billion rupees ($6.5 billion) of annual sales from the business within five years.
Backdrop: In September, the company paid roughly $22 crore to Delhi-based Pure Drinks Group to acquire the domestic soft drink brand Campa, which was once a market leader in the Indian soft drink market in the 1970s and 1980s.
Recently, Reliance also acquired a 100% stake in METRO Cash & Carry India, a wholly-owned subsidiary of German wholesaler METRO AG.
With the joint venture with Sosyo Hajoori Beverages, Reliance plans to further strengthen its portfolio in the beverage segment having already acquired the iconic brand Campa.
By the Numbers: Reliance Retail Ventures has signed an agreement to acquire a controlling stake in BSE-listed Lotus Chocolate Co. where they will acquire a 51% stake from the promoter and promoter group entities of the confectionary maker and make an open offer to the public shareholders to acquire an additional 26% stake.
For FY22, Reliance Retail Ventures reported a consolidated turnover of Rs 1,99,704 crore and a net profit of Rs 7,055 crore.
What's next: By opening the gourmet store Freshpik in 2021 and expanding the 7-Eleven chain of convenience stores, Reliance Retail bolstered its grocery business.
Read in short: RIL wants to offer a variety of necessary products for consumers' daily requirements through Reliance Consumer Products and to commence with this the company has made several acquisitions such as the beverage industry, consumer buy and go industry as well as confections industry.