Reliance Industries Ltd (RIL) is undertaking a significant restructuring exercise to consolidate its fast-moving consumer goods (FMCG) brands into a new, dedicated entity named New Reliance Consumer Products Ltd (New RCPL). This strategic move aims to provide specialized and focused attention to the rapidly growing FMCG business, which is currently housed across Reliance Retail Ventures Ltd (RRVL), Reliance Retail Ltd (RRL), and Reliance Consumer Products Ltd (RCPL). The creation of New RCPL, which will operate as a direct subsidiary of RIL similar to Jio Platforms Ltd, is also designed to attract a distinct set of investors specifically interested in the consumer goods segment.

According to a National Company Law Tribunal (NCLT) order dated June 25, the consumer brands business requires unique expertise and significant ongoing capital investments, differentiating it from the broader retail operations. RIL chairman Mukesh Ambani has previously signaled plans for Initial Public Offerings (IPOs) of the group’s retail and telecom businesses. The spin-off of the FMCG unit is seen as a crucial step in preparing the retail business for a potential mega IPO, as separating a high-growth, capital-intensive vertical like FMCG could streamline valuations and offer greater clarity to investors. RRVL alone holds a valuation exceeding $100 billion, suggesting that its public offering could be one of the largest in recent times if it materializes.

Reliance's burgeoning FMCG business was valued at Rs 11,500 crore in FY25, encompassing a diverse portfolio of homegrown brands and strategic acquisitions. Key brands include Campa (soft drinks), Independence (packaged groceries), Ravalgaon (confectionery), SIL (jams and sauces), Sosyo (regional beverages), and Velvette (shampoos). RCPL, the existing consumer goods arm, has implemented a market penetration strategy by offering products at prices 20-40% lower than major rivals such as Coca-Cola, Mondelez, and Hindustan Unilever, while also providing higher trade margins to distributors and neighborhood stores. This approach aims to cater to 600 million mass-end consumers and has already seen success, with Campa achieving double-digit market share in certain regions. The group intends to scale up the FMCG business nationally by March 2027.

The restructuring process involves a detailed four-step scheme. First, FMCG brands from RRL will be transferred to RRVL via a slump sale. Second, RCPL will be amalgamated with RRVL. Third, the consolidated “consumer brands business undertaking” will be demerged from RRVL and vested into Tira Beauty Ltd, a shell company with no current business operations. Finally, Tira Beauty will be renamed New Reliance Consumer Products (New RCPL) on a going concern basis, becoming a direct subsidiary of RIL. This comprehensive arrangement, approved by the Mumbai bench of the NCLT, underscores RIL's commitment to strategic business segmentation and maximizing investor appeal for its diverse ventures.