RCPL's ₹1 trillion revenue goal seen as huge value creator: Brokerages

At Reliance Industries (RIL) annual general meeting (AGM) on Friday, non-executive director Isha Ambani said the group’s near-term ambition is to make Reliance Consumer Products Ltd (RCPL) the fastest consumer brand company to reach the ₹1-trillion revenue mark (within five years). Brokerages say that, if this happens, it will be a huge value creator for the company.

 

Mukesh Ambani, chairman and managing director, also said in his opening speech that, “This year, I announced the creation of two new large growth engines — RCPL and Reliance Intelligence. Each of them has the potential to grow larger than our existing business segments.”

 

Antique Stock Broking said in its report that execution by the company — which needs to be closely watched — includes its own brands’ penetration to defend margins as the channel (of distribution) skews towards online, quick commerce and dark store density. Another execution strategy which needs to be closely monitored is RCPL's manufacturing and route-to-market buildout to support the leap in outlets and geographies (it is planning entry into 25 countries in 12 months). If delivered, this segment remains the most visible multi-year compounding driver.

 

Isha also said at the AGM that RCPL is set to become a direct subsidiary of RIL. “As a separate company, RCPL will give this business the independence to focus exclusively on its markets, products, and customers without competing for management bandwidth,” she said.

 

Motilal Oswal Financial Services said in a report that the consumer products business would be a huge value creator with a revenue target of ₹1 trillion within five years (compared to ₹11,500 crore in FY25).

 

During her speech, Isha said that Campa Cola now holds double-digit market share across many states, breaking the 30-year multinational company (MNC) duopoly. She added that its brand Independence has crossed ₹1,000 crore in revenue.