Reliance to consolidate consumer brands under New RCPL subsidiary

RIL said that the spin-off is aimed at attracting investors beyond those backing its retail unit

Mukesh Ambani-led Reliance Industries Ltd is planning to consolidate all its consumer goods brands into a new entity named New Reliance Consumer Products Ltd (New RCPL), Reuters reported on Thursday.

 

The company said that the spin-off is aimed at attracting investors beyond those backing its retail unit.

 

On June 25, the National Company Law Tribunal (NCLT) reportedly approved the internal restructuring process, under which RIL will transfer its consumer business from its retail arm into a direct subsidiary. Currently, its consumer goods fall under Reliance Retail Ltd (RRL), Reliance Retail Ventures Ltd (RRVL), and Reliance Consumer Products Ltd (RCPL). 

 

 

"This is a large business by itself, requiring specialised and focused attention, expertise and different skill sets as compared to a retail business. This business also entails large capital investments on an ongoing basis and can attract a different set of investors," the company said in its request for approval, as quoted by Reuters.

 

The New RCPL will look after manufacturing, distribution, selling, and marketing consumer goods. It will also invest in subsidiaries and joint ventures related to this business, the NCLT filing said, as quoted by Bloomberg. RIL will hold an 83.56 per cent stake in the new entity, Reuters reported.

 

RRVL reported a 30.4 per cent year-on-year (y-o-y) rise in its net profit at ₹3,519 crore for the fourth quarter of the financial year 2024-25 (FY25). The firm’s revenue from operations came in at ₹78,622 crore, up 16.3 per cent y-o-y, while its gross revenue from operations was up 15.7 per cent to ₹88,620 crore. Sequentially, its revenue from operations was down 1.2 per cent and its net profit was up 1.0 per cent.

 

Shares of RIL last traded at ₹1518.95 apiece on the BSE at the close of the markets on Thursday.