India: Reliance strengthens staples portfolio with Udhaiyam acquisition

Reliance Consumer Products Limited (RCPL), the fast-moving consumer goods arm of Reliance Industries, has acquired a majority stake in the Tamil Nadu-based food firm Udhaiyam.

Operating under its namesake brand, the Chennai-based company has a history spanning over three decades and is estimated to be a 6.68 billion INR ($80 million) business. Its portfolio includes a wide range of staples such as pulses, rice, spices and flour, as well as snacks and ready-to-cook items like idli batter. Under the terms of the joint venture, RCPL will hold the controlling interest while the existing promoters, S. Sudhakar and S. Dinakar, will retain a minority stake and continue to support the company’s next phase of growth.

RCPL director T. Krishnakumar commented: “Udhaiyam is a brand that needs no introduction […] 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”.

The deal follows a string of acquisitions by RCPL as it seeks to scale regional brands nationally, including its recent purchase of the personal care brand Velvette and its 51% stake in Lotus Chocolate in 2023.

Source: RCPL / Economic Times / Business Standard / Tracxn