Expanding Reach in Rural India Through Affordable FMCG Products: National Expansion Strategy by 2027
New Delhi: Reliance Industries, India's largest private company, is making a significant foray into the FMCG (Fast-Moving Consumer Goods) sector. The company aims to reach every village, providing affordable, high-quality products to the common citizen. This strategy targets approximately 600 million middle-class consumers across the country.
Focus on Rural India
T. Krishnakumar, Director of Reliance Consumer Products Limited (RCPL), stated that a large segment of India's 1.4 billion population remains underserved in the FMCG market. He explained, "There are around 600 million consumers for whom affordable, good-quality products can be created, and that's where our focus lies."
Challenging Premium Products
While other large companies like Hindustan Unilever, ITC, Dabur, and Nestle focus on the premium segment, Reliance aims to provide affordable products to the masses. The company's strategy involves building a b distribution network through partnerships with local kirana stores (small grocery shops), offering them attractive margins to foster collaboration.
Acquisition of Over 15 Brands
Since entering the FMCG sector in 2022, Reliance has acquired more than 15 brands. These include Campa Cold Drink, Lotus Chocolates, ToffiMan, Rawalgaon, Sil Jam, Allen Bugles Snacks, Velvet Shampoo, and Independence Staples. The company plans to achieve national-level presence for all these brands by March 2027.
Excellent Performance in FY25
In fiscal year 2025, RCPL recorded revenue of ₹11,500 crore (115 billion rupees), with 60% of sales coming from general trade. The company claims that sales of Campa and Independence brands exceeded ₹1,000 crore (10 billion rupees), and their network has reached 1 million stores.
Competitive Pricing in the Market
Reliance has priced its major products 20-40% lower than leading market players. In categories like soft drinks, chocolates, and detergents, the company directly competes with Coca-Cola, Mondelez, and HUL.
Future Strategy
The company aims to achieve a 60-70% market share in beverages and staples by March 2026. According to Krishnakumar, "We will proceed through both organic growth and acquisitions, but will not overpay for any brand."
Reliance's strategy could significantly impact India's FMCG market. While providing affordable and reliable options to rural India, it also presents a major challenge to the country's established FMCG giants.
