Reliance Consumer Products takes its confectionaries to African market

Campa and Independence brands cross the Rs 1,000 crore mark each

Reliance Consumer Products (RCPL) has taken its confectionery to the African market and will also expand its carbonated beverage brand, Campa, to Sri Lanka and Nepal, according to a source in the know.

 

In February, the consumer goods arm of Reliance Industries made its first international foray by taking Campa to the United Arab Emirates (UAE). It has now entered other West Asian markets with its cola brand.

 

Its confectionery brands include Lotus, Toffeeman, and the recently acquired Ravalgaon.

 

After announcing its launch in the Indian consumer goods space in 2022 and entering the market in 2023, RCPL now has a reach of 1 million outlets, the source added, noting that the company aims to expand to 5 million outlets in the next three years.

 

Its existing brands, Campa and Independence, have each crossed the ₹1,000 crore turnover milestone. Reliance Retail had announced after its third-quarter results that both brands were projected to cross ₹1,000 crore in turnover in 2024-25 (FY25). It also said that the consumer brands business continued to grow across categories, with nine-month FY25 revenue at ₹8,000 crore.

 

RCPL has not yet invested heavily in advertising its products but plans to do so over the next 45 days during the Indian Premier League (IPL). The source added that RCPL’s advertising spend would be aligned with what is needed for its brands.

 

On acquisitions, the source clarified that the company is not on an acquisition spree but will continue to seek brands that were once popular among Indian consumers. It recently acquired Sil, a brand known for packaged food products like jams and sauces, for an undisclosed amount.

 

The company aims to establish a presence across all categories and segments in the consumer goods market. The source said that RCPL initially focused on bringing brands into the Indian market and building its distribution network. Now that it has achieved a 1-million-store reach, the company is working on scaling up the reach of each brand. The company intends to reach 5 million stores over the next three years. 

 

So far, the company has products across categories such as biscuits, namkeens, soft drinks, candies, detergents, and soaps, among others.

 

RCPL is also making inroads in the trade by offering higher margins across the supply chain. It offers super stockists around 6.5 per cent — almost double the 3-5 per cent (including performance-based incentives) typically offered by other chips, namkeen, and biscuit brands. Its current brands in the chips and namkeen market include Alan’s Bugles and Snactac, while in biscuits, it operates under the Independence brand.

 

Distributors are also incentivised with higher margins, receiving around 8 per cent with an additional 2 per cent (including performance-based incentives), compared to the 6-6.5 per cent offered by other snack brands.

 

Retailers receive a 20 per cent margin, much higher than the 8-15 per cent (including margins and quantity-based purchase schemes) offered by other brands.