Reliance targets 600 million Indian shoppers with kirana-led FMCG plan

Reliance Consumer targets India's 600 million value-focused buyers with affordable products and deeper ties with kirana stores, aiming national scale by 2027

Reliance Industries is focusing its fast-moving consumer goods (FMCG) strategy on India’s 600 million value-conscious consumers and aims to strengthen partnerships with local kirana stores by offering higher trade margins, said T Krishnakumar, Director of Reliance Consumer Products Ltd (RCPL), in an interview with The Economic Times.

 

“India has a 1.4 billion population, plus or minus. Then we have a core middle class. And then about 600 million consumers. We want to make quality products for these consumers,” Krishnakumar said.

 

“Nobody has tried to enter this space nationally with a clear approach; regional and local players have tried but they have not been able to sustain,” he said.

 

 

How is RCPL growing its brand portfolio?

 

Launched in 2022 as a wholly owned subsidiary of Reliance Retail Ventures, RCPL has acquired over 15 brands including Campa Cola, Sil jams, Lotus Chocolate, Ravalgaon, Toffeman, Alan’s Bugles, Velvette shampoo, and its own Independence staples brand.

 

RCPL plans to expand its brand portfolio nationally by March 2027. “When I say we are scaling up, it does not mean tomorrow. For any product to be scaled in an intense manner, you need 24–30 months,” Krishnakumar said.

 

In FY25, RCPL reported ₹11,500 crore in revenue, with over 60 per cent of sales coming from general trade. Campa and Independence each crossed ₹1,000 crore in sales and reached 1 million stores.

 

“We were about 20 per cent of the market in beverages and staples as we ended last year… We need to take it to 60–70 per cent by March 2026. The rest of the categories too will start systematically,” Krishnakumar added. 

 

Why affordability and kirana tie-ups are key to Reliance’s growth

 

RCPL has positioned its products 20–40 per cent cheaper than competitors in categories like soft drinks, chocolates, and detergents. The company is currently prioritising affordability amid subdued urban consumption.

 

“I am confident of an overall positive demand outlook and the India story. As long as you can give consumers quality products at affordable prices, I don’t see demand under too much stress,” Krishnakumar said.

 

He also confirmed that the company has surpassed the 1-million distribution milestone and may enter premium segments over time, while maintaining affordability.

 

“We will continue to pursue a mix of organic growth and acquisitions. But we are not going to acquire at a massive cost; we will do acquisitions where we get a good chance of turning around and evolving heritage businesses,” he said. 

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Is Reliance prioritising general trade over e-commerce?

 

On distribution, Krishnakumar noted that general trade remains the focus. “We want to be very relevant to the general trade—it is still 90–92 per cent of categories and the backbone of FMCG distribution. Are we looking at e-commerce as a primary channel? The answer is no. We believe good brands are built omni-channel and that’s how we will build our brands,” he added.  

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