{"id":223070,"date":"2025-05-04T15:28:26","date_gmt":"2025-05-04T15:28:26","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/marketing\/reliances-fmcg-arm-becomes-indias-8th-largest-in-just-2-years-surpassing-marico-et-brandequity\/"},"modified":"2025-05-04T15:28:26","modified_gmt":"2025-05-04T15:28:26","slug":"reliances-fmcg-arm-becomes-indias-8th-largest-in-just-2-years-surpassing-marico-et-brandequity","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=223070","title":{"rendered":"Reliance\u2019s FMCG arm becomes India\u2019s 8th largest in just 2 years, surpassing Marico, ET BrandEquity"},"content":{"rendered":"


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Reliance Industries Ltd<\/a>\u2019s (RIL) fast-moving consumer goods (FMCG<\/a>) business has surged to become the eighth-largest in India within just two years, overtaking established players such as Marico<\/a> and Tata Consumer Products<\/a>\u2019 India operations, according to brokerage CLSA and company disclosures.<\/p>\n

The conglomerate\u2019s FMCG division, housed under Reliance Retail<\/a>, clocked Rs 11,500 crore in revenue<\/a> in FY25, driven by strong traction for brands such as Independence and Campa. That puts it ahead of Marico and Tata Consumer\u2019s India business, and nearly at par with Dabur<\/a>\u2019s domestic sales, according to brokerage reports. As per fourth-quarter data, Reliance<\/a> Consumer Products also emerged as the fastest-growing FMCG company in the country.<\/p>\n

The division, which has expanded rapidly through general trade channels and a broad retail<\/a> network, recorded a 3.5x year-on-year increase in sales. The growth was fuelled by aggressive product rollouts and expanded market reach, Reliance Retail said during its fourth-quarter earnings call.<\/p>\n

Aggressive market entry<\/h2>\n

Brokerage CLSA, which maintained an \u201coutperform\u201d rating on Reliance Industries with a target price of Rs 1,650, highlighted in a post-earnings note that Reliance\u2019s FMCG vertical is now the eighth-largest by revenue nationally, just two years after its formal entry in 2022. The brokerage noted that Reliance\u2019s consumer brands are now distributed through over 3,200 distributors and reach more than one million retail outlets.Reliance Retail CFO Dinesh Taluja said during the earnings call that flagship brands like Campa and Independence are witnessing \u201cvery, very rapid\u201d growth. Campa has already secured a double-digit market share in key regions. The portfolio is also expanding with launches like Campa Energy and Spinner, a new sports drink endorsed by cricketer Muttiah Muralidharan.<\/p>\n

Store rationalisation, profit focus<\/h2>\n

Reliance Retail underwent a significant rationalisation of its store network in FY25, closing 2,155 outlets \u2014 more than double the number closed the previous year \u2014 even as it opened 2,659 new stores. Net store additions stood at around 500, taking the total to 19,340. The retail arm now contributes 15 per cent to Reliance Industries\u2019 consolidated EBITDA, up from 10 per cent four years ago.Despite muted demand trends in parts of urban and rural India, the retail segment posted a 16 per cent rise in sales and a 30 per cent increase in net profit in Q4FY25. Operating EBITDA margin rose by 20 basis points to 9 per cent over the fiscal.<\/p>\n

\u201cIn FY25, the business focused on a strategic recalibration of our store network, aimed at improving operational efficiencies and long-term sustainability,\u201d Reliance Industries Chairman Mukesh Ambani said in a statement.<\/p>\n

Expanding horizons<\/h2>\n

Taluja said during the earnings call that Reliance has begun setting up distribution channels overseas to cater to select international markets where its consumer products have relevance.\u201cWe would set up distribution in select markets to really distribute our products where they have the relevant appeal in a pretty big way,\u201d he said.<\/p>\n

The FMCG push aligns with Reliance\u2019s broader retail strategy, which includes scaling up quick commerce<\/a> and subscription-based delivery models under the JioMart platform. JioMart\u2019s \u2018Quick\u2019 service now covers over 4,000 pin codes, offering sub-30-minute deliveries without additional charges.<\/p>\n

CLSA sees strong growth ahead<\/h2>\n

CLSA noted that Reliance Retail\u2019s Q4FY25 EBITDA of Rs 6,520 crore was 2 per cent above its estimates, reflecting a return to mid-teen year-on-year growth rates. While the brokerage trimmed its FY26 and FY27 EPS estimates by 6 per cent and 8 per cent , respectively, due to higher capitalisation-related costs, it reiterated its confidence in the long-term growth of the retail segment.\u201cReliance committed to expand in quick commerce, along with plans to add dark stores on a selective basis,\u201d CLSA said.<\/p>\n

As Reliance doubles down on its retail ambitions, its FMCG vertical has emerged as a formidable new pillar, reshaping the competitive landscape in one of India\u2019s most crowded and brand-loyal consumer categories.<\/p>\n

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