Reliance Consumer acquires majority stake in Udhaiyams Agro Foods

Economic Times
Economic Times
17h ago
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Reliance Consumer acquired majority control of Udhaiyams Agro Foods, expanding into branded staples to compete with major players in FMCG.
Reliance Consumer acquires majority stake in Udhaiyams Agro Foods
A What happened
Reliance Consumer Products (RCPL), the FMCG subsidiary of Reliance Industries, purchased a majority stake in Udhaiyams Agro Foods, a Chennai-based company with 30 years of experience in staples, pulses, snacks, and breakfast mixes. The acquisition aligns with RCPL's broader strategy to build a more diversified and competitive FMCG portfolio, competing with established staples and packaged food brands in India such as Tata Consumer Products, MTR, and iD Fresh Foods. This move comes as RCPL restructures to focus on packaged consumer products and plans large-scale food manufacturing investments worth ₹40,000 crore. Udhaiyams' prior owners will retain a minority stake, maintaining operational continuity while scaling through RCPL's resources.
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Key insights

  • 1

    Strategic Diversification in FMCG Portfolio: RCPL is deepening its reach into staples and breakfast mixes, less commoditized FMCG categories, to diversify revenue sources beyond beverages and personal care.

  • 2

    Competitive Pressure in Staples Market: The acquisition intensifies competition among FMCG leaders who seek scale in branded staples, a high-demand category benefiting from rising consumer packaged food consumption in India.

  • 3

    Consolidation Trend in Indian Packaged Foods: This deal follows broader consolidation with companies like Honasa and Godrej acquiring niche brands, indicating growing investor appetite for scalable packaged food businesses.

Takeaways

RCPL's majority acquisition of Udhaiyams Agro Foods strengthens its FMCG presence, positioning it to compete more effectively in India's expanding packaged foods market.