Reliance Consumer Products to focus on expanding distribution reach

After launching a slew of products, Reliance Consumer Products is now focusing on expanding and strengthening its supply chain across the country before entering other categories, according to a source in the know. 

The company will set up a separate supply chain for its carbonated drinks business, Campa Cola, as it will require cold storage as well.

It has tied up with Bovonto Soft Drinks to make Campa Cola but will also use its supply chain to distribute its drinks in South India. 

The source, however, did not elaborate on the number of its current retail reach in the country. 

After announcing its entry in the consumer space, Reliance Consumer Products has announced its entry across different categories which include home and personal care, staples, chocolates, biscuits and western snacks. 

The source added that the company will eventually be present across all categories. And, unlike other companies, which are pushing for premiumisation, the Mukesh Ambani-led firm will focus on keeping product prices low. 

In carbonated drinks as well as in the home and personal care space, Reliance Consumer Products has launched products at prices that are lower than competition. 

The source also added that it has already announced its entry into the biscuits space with Sri Lanka-headquartered Maliban Biscuit Manufactories (Maliban). It will offer a range of biscuits to the Indian consumer towards the festive season (closer to Diwali).

He added that even its dairy products are most likely to hit retail shelves during the festive season.

Reliance Consumer is yet to answer Business Standard’s email query asking about its plans on expanding the supply chain. 

The source added that distributors, super stockists and retailers are being offered higher margins, but did not comment if these new margins will continue or be pulled back later. 

Super stockists that Business Standard spoke to earlier had said they are being incentivised with double margins compared to other FMCG companies. Reliance Retail is currently giving super stockists margins of six per cent. Other FMCG companies’ margins are in the range of 2.95-3 per cent.

For its staples, which it launched under the brand name INDEPENDENCE, the company said last week that it has started distribution in the North. Its statement said, “The products are now available to consumers across Punjab, Haryana, Delhi-NCR, Uttar Pradesh, Uttarakhand and Bihar.”

Products, which come under the INDEPENDENCE brand, include edible oils, grains, pulses and packaged foods along with other items for daily use. They also include processed foods like glucose biscuits, energy toffee and other daily essentials items.

According to another source, a select few items are being tested in the Southern market. The brand was first launched towards the end of 2022.