By Kritika Arora
After announcing its foray into the FMCG sector, Reliance Retail is working on an aggressive plan to build a strong portfolio in the space with a host of popular brand acquisitions. Industry and trade sources told FE that the company is in talks to acquire renowned spice maker Mahashian Di Hatti (MDH). Besides, he is also eyeing one of the biggest spice makers in Tamil Nadu, Aachi Masala. The company has invested in Tamil Nadu’s Udhaya Krishna Ghee and may strike a deal with it.
Trade sources have observed that the acquisition of these brands will give Reliance Retail the necessary boost for its FMCG game. For example, MDH is one of the largest spice manufacturers in the country and has a significant presence in northern India. It sells more than 60 products in the country and has a network of 1,000 dealers and thousands of dealers. The company can produce 30 tons of spices in a day, according to its website. Similarly, Aachi Masala has about 3,000 distributors.
When contacted, a spokesperson for Reliance Retail said: ‘As a policy we do not comment on media speculation and rumours. Our company regularly evaluates various opportunities. We have made and will continue to make necessary disclosures in accordance with our obligations under the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 and our agreements with stock exchanges. The target companies could not be independently reached for comment.
Days after news broke of the FMCG foray, it was reported that Reliance Retail had acquired beverage brand Campa Cola from Pure Drinks and beauty brand Insight Cosmetics.
It was also reported that the company was in talks with Bindu Beverages.
At the company’s 45th annual general meeting on August 29, Isha Ambani, daughter of Reliance Industries chairman Mukesh Ambani, who heads the retail business and is a director on the company’s board, announced the incursion. FMCG: “The objective of this company is to develop and provide high quality affordable products that meet the daily needs of every Indian.”
The company already has its own brands in the basics, home, personal care and general merchandise categories and with this foray it will compete with, among others, Hindustan majors Unilever, Dabur, Nestlé and Marico. .
Read also : Fujifilm India Launches “Never Stop: Innovating For A Healthier World” Campaign
Ffollow us on TwitterInstagram, LinkedIn, Facebook