Reliance Consumer Products Acquires Majority Stake in Udhaiyams Agro

Reliance Consumer Products Acquires Majority Stake in Udhaiyams Agro

Why in News? 

Recently, Reliance Consumer Products Limited has taken a strategic step by acquiring a majority stake in Udhaiyams Agro Foods Private Limited. The move strengthens Reliance’s presence in the staples and nutrition segment.

Highlights of Reliance Consumer Products Limited’s Recent Acquisition

• Reliance Consumer Products Limited (RCPL), the fast-moving consumer goods division of Reliance Industries, completed the acquisition of a majority stake in Udhaiyams Agro Foods Private Limited on 18 December 2025. This deal was formalized through a joint venture agreement.
• The primary goal of this transaction is to expand RCPL’s presence in the branded staples, nutrition segment and achieve wider market penetration. 
• While detailed financial terms were not officially disclosed by RCPL, industry sources suggest the acquisition value is around ₹668 crore. Additionally, regulatory filings indicate that RCPL infused ₹380 crore through a preferential allotment, obtaining approximately 76% ownership in Udhaiyams Agro Foods. 
• After the acquisition, the original promoters of Udhaiyams — S. Sudhakar and S. Dinakar — retain minority stakes in the company. They are expected to continue supporting operations. 

Reliance Consumer Products Limited and Its FMCG Market

• Reliance Consumer Products Limited (RCPL) is a wholly owned subsidiary of Reliance Retail Ventures Limited, which operates under Reliance Industries Limited, India’s largest private sector enterprise founded in 1966. 
• RCPL began its FMCG journey in a phased manner after 2020, when Reliance Retail scaled its private label strategy into independent consumer brands. RCPL positioned itself to capture this demand through affordable pricing and mass distribution.
• RCPL operates across multiple FMCG segments such as packaged foods, staples, beverages, and nutrition products. The company has introduced and revived several brands in edible oils, rice, pulses, flour, ready-to-cook foods, and soft drinks.
• One of RCPL’s biggest strengths is its integration with Reliance Retail’s network of over 18,000 stores as of 2024. Products reach consumers through supermarkets, neighborhood stores, wholesale formats, and digital platforms. 
• RCPL uses a combination of in-house manufacturing, contract production, and regional sourcing. This hybrid model ensures flexibility and cost efficiency. A strong supply chain allows RCPL to maintain freshness, availability, and price stability.
• Reliance Retail Ventures Limited reported revenue exceeding ₹3 lakh crore in FY24, making it India’s largest retailer. FMCG revenues have grown steadily since FY22, supported by volume expansion rather than premium pricing. 
• RCPL’s operations align with national priorities such as Make in India, food processing expansion, and agri-value chain development. The company sources raw materials from Indian farmers and processors. 

Strategic Rationale Behind the Majority Stake Acquisition

• Expansion of FMCG Portfolio: RCPL acquired a majority stake in Udhaiyams Agro Foods to expand its footprint within the fast-moving consumer goods (FMCG) sector. The company already has multiple brands in beverages, snacks, and personal care products. By adding Udhaiyam, RCPL gains access to staples, pulses, snacks and breakfast mixes, thus deepening its product portfolio in essential food segments.

• Strong Regional Brand: Udhaiyam has a heritage of over three decades and enjoys strong consumer trust in Tamil Nadu. The strategic rationale includes leveraging Reliance’s national distribution network and retail ecosystem to scale this regional brand to a pan-India presence. This step aligns with RCPL’s goal to elevate local brands to national stature.

• Competitive Positioning: By incorporating Udhaiyam into its portfolio, RCPL positions itself to compete more effectively with established players such as Tata Consumer Products, iD Fresh Foods and MTR in staples and breakfast categories. Udhaiyam’s existing market strength gives RCPL a competitive edge in wider categories.

• Integration with Existing Expansion: The Udhaiyam acquisition comes shortly after RCPL’s relaunch of the 75-year-old SIL brand and other packaging initiatives earlier in 2025 as part of its broader packaged foods push. These moves indicate a cohesive strategy to grow the staples and packaged foods business by combining heritage brands.