Reliance Consumer Products Limited (RCPL), the FMCG arm of Reliance Retail Ventures, is in advanced negotiations to acquire a majority stake in Udhaiyams Agro Foods, a mid-sized, Chennai-based company specialising in staples and ready-to-cook breakfast mixes.
This strategic move aims to expand Reliance’s presence in the competitive Indian packaged food market and directly challenge established players such as Tata Consumer Products, iD Fresh Food, and MTR.
The deal is a crucial part of Reliance’s strategy to first establish a strong foothold in regional markets by acquiring popular local brands, and then scaling them up for a national rollout across its extensive retail network, which includes over one million outlets.
Udhaiyams Agro Foods, known for products such as wheat flour, pulses, salt, and spices under the popular “Udhaiyam” trademark, reported annual sales of approximately ₹668 crore (approximately $80 million) in the competitive South Indian market.
Following the acquisition, the current promoters, S Sudhakar and S Dinakar, are expected to retain a minority stake in the company.
This transaction aligns with a recent flurry of mergers and acquisitions in India’s consumer sector, particularly in the food and beverages segment, as companies vie for a larger share of the burgeoning packaged food market, projected to reach $224.8 billion by 2033.
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Reliance’s focus on branded consumer goods, combined with its robust distribution channels, is set to intensify the competition in the Indian FMCG landscape.
