Reliance Consumer Products Ltd, the fast-moving consumer goods unit of the Reliance Industries, on December 18 acquired a majority stake in Tamil Nadu’s heritage nutrition brand Udhaiyams Agro Foods for an undisclosed amount.
Following this acquisition, RCPL holds a majority stake, while erstwhile promoters of Udhaiyams Agro Foods Private Ltd — S Sudhakar and S Dinakar — will continue to hold a minority stake in the company, RIL said in a statement.
The deal, which is expected to add strength to Reliance Consumer Products’ branded staples portfolio, comes two days after the FMCG major announced a significant expansion into the packaged foods market with the relaunch of 75-year-old legacy foods brand SIL as its flagship offering in the segment.
“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,” RIL said.
With more than 30 years of experience in the staples category and in scaling the packaged pulses business at Udhaiyams, they will continue with the company and support the next phase of growth, it added.
T Krishnakumar, Director, Reliance Consumer Products, said, “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.”
Commenting on the development, S Sudhakar, Managing Director, Udhaiyams Agro Foods Private Limited, stated, “This partnership with RCPL opens up new opportunities for Udhaiyam… 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.”
