Reliance Consumer Products acquires majority stake in Udhaiyams Agro

Reliance Consumer Products Ltd (RCPL), the fast-moving consumer goods arm of Reliance Industries, on Thursday announced that it has acquired a majority stake in Udhaiyams Agro Foods for an undisclosed amount.

 

Under the joint venture agreement, RCPL holds a majority stake, while Udhaiyams’ erstwhile owners hold a minority stake in the company.

 

“Through this acquisition, RCPL further reaffirms its commitment to the company’s core philosophy of promoting India’s heritage and legacy brands. This joint venture will bolster RCPL’s efforts to offer ‘global quality at affordable prices’ to millions of consumers across the country,” RCPL said in its release.

 

 

With this acquisition, RCPL gets into competition with Tata Consumer Products in the staples space and also gets into competition with iD Fresh and Orkla’s MTR, which are in the business of idli batter.

 

T Krishnakumar, director, RCPL, said in the release: “Udhaiyam is a brand that needs no introduction. It has been serving healthy food choices to consumers for decades and is a true reflection of Tamil Nadu’s rich heritage, enriched with its scientific temper and superior quality.”

 

He added: “We are very excited to announce this joint venture, as it further strengthens RCPL’s presence in the branded staples space. This initiative also reaffirms our commitment to offering global-quality products to consumers at affordable price points, while promoting India’s legacy. I am sure that Udhaiyam will soon scale up to a national brand and satisfy consumers across India, just as it has earned the trust of millions in Tamil Nadu over decades.”

 

Udhaiyams Agro Foods, which operates under its highly popular flagship brand ‘Udhaiyam’, has over three decades and a significant market presence in Tamil Nadu. The brand has established itself in key staple and food product categories, which include rice, spices, snacks and idli batter, among others, supported by a wide distribution network in the state.

 

Following this acquisition, the erstwhile promoters of Udhaiyams Agro Foods — S Sudhakar and S Dinakar — will continue to hold a minority stake in the company and will continue with the company and support the next phase of growth.

 

S Sudhakar, managing director, Udhaiyams Agro Foods, stated in the release: “This partnership with RCPL opens up new opportunities for Udhaiyam. The brand has delighted consumers in Tamil Nadu for decades. When it comes to branded pulses, Udhaiyam is synonymous with the best quality for households across the state. With RCPL now taking charge of its expansion, we are confident that the goodness of Tamil Nadu and the rich heritage of the land will resonate with consumers across geographies, while adding value to their lives as we increasingly transition towards a healthier lifestyle.”