Indian industrialist Mukesh Ambani is now working on a strategy to make Reliance a door-to-door reach. Under this, Reliance is in talks to buy about 30 such popular consumer brands. This negotiation is in the final stages. For this, Reliance is promoting a new vertical Reliance Retail Consumer Brands.
In fact, Reliance’s target is that it can compete with big international companies like Unilever, PepsiCo, Nestle and Coca-Cola, which have made their reach. For this, Reliance Company has planned to build a portfolio of 50-60 brands related to grocery, household and personal care in the next 6 months.
Reliance, run by Indian billionaire Mukesh Ambani, is hiring a team of distributors to build a portfolio of 50-60 brands as well as take them to their ‘mom-and-pop stores’ and larger retail outlets. According to the news, talks with 30 popular local consumer brands of Reliance India are in the final stages.
It is reported that Reliance will either buy these company brands outright or may form a joint venture with them. Due to which Reliance got a stake in SAIL. However, the information about how many crores Reliance will spend on the deal of these brands has not been revealed yet. At the same time, Reuters has quoted sources as saying that in 5 years, Reliance has set an annual sales target of $ 500 billion for the retail business. At present, Reliance has not issued any official statement regarding this.
In fact, Reliance wants to challenge the big brands that have been operating in India for decades like Nestle, Unilever, PepsiCo Inc and Coca-Cola. Unilever’s Indian arm reported sales of $6.5 billion in the fiscal year ending March 2022. It claims that nine out of 10 households in India use at least one of its brands.
At the same time, regarding this planning of Reliance, Alok Shah of Ambit Capital says that it will not be easy for Reliance. Since the old big brands have their own identity, it is a big challenge for the company to compete with them. In such a situation, if Reliance works on mergers and acquisitions of big brands, then it can be easy.