 "Reliance Consumer acquires SIL, gears up to challenge HUL, Tata in FMCG")
Reliance Consumer Products has acquired packaged foods brand SIL Food India, which offers a range of products including cooking pastes, jams, mayonnaise, baked beans, and Chinese sauces.
Pune-based company SIL Food India primarily operates in the Western and Southern markets, and Reliance Consumer Products Ltd (RCPL) plans to expand its distribution nationally to compete with FMCG majors like HUL, Tata Consumer, and Cremica.
Strategic acquisition
The acquisition involves Reliance Consumer Products acquiring SIL brands from its current owner, Food Service India. SIL operates manufacturing facilities in Pune and Bengaluru, as listed on its website. Ketan Mody, COO of Reliance Consumer Products Limited, said, "...We believe that with our expertise in consumer engagement, innovation, and distribution, we can unlock the brand’s full potential and make it even more relevant in today’s fast-evolving marketplace."
SIL Food India, originally known as James Smith & Co, was first acquired by Marico Industries in 1993. Marico later sold the business to Scandic Food India, a subsidiary of Denmark’s Good Food Group. In 2021, Food Service India, a company that supplies seasonings, spices, and condiments to the hospitality industry, acquired SIL Foods. Ajay Mariwala, managing director of SIL Foods, said, "We are thrilled to join forces with Reliance Consumer Products and embark on this new chapter for SIL Foods. RCPL will help breathe new life into the SIL brand by expanding its reach and bringing the authentic SIL products to a broader, modern audience."
Competitive strategy
Reliance Consumer Products plans to continue its strategy of pricing its products lower than competitors, offering higher trade margins to retailers and reviving legacy brands. The acquisition will involve SIL brands, but not the company or its manufacturing facilities.
This deal is part of RCPL’s broader acquisition strategy, which in recent years has included Ravalgaon and Toffeeman confectioneries, Campa soft drinks, Raskik beverages, Sosyo carbonated drinks, and Lotus chocolates.
Also Read
RCPL’s growth in FY25
Reliance Consumer Products Ltd (RCPL), a fully owned subsidiary of Reliance Retail Ventures (RRVL), has shown impressive growth, reporting a top line of Rs 8,000 crore for the first nine months of FY25. During its December quarter earnings, RRVL announced that its Campa and Independence brands are projected to reach Rs 1,000 crore by the end of FY25. The company also witnessed nearly 300 per cent year-on-year growth in its distribution network and merchant outlets between October and December 2024.
Packaged foods market
Recent market activity in the packaged foods sector includes Samara Capital-backed Agro Tech Foods acquiring a 100 per cent stake in Del Monte Foods, valued at Rs 1,300 crore. Additionally, Compass India Food Services, a subsidiary of the $38 billion British Compass Group, acquired a majority 70 per cent stake in ICS Foods, a Delhi-based food catering company, marking significant shifts in the sector, the news report said.