RIL Annual Report FY23: Related Party Disclosure Pegs Up To Rs 6,000 Crore Of Business From FMCG Arm
Reliance Industries Ltd. has set an ambitious five-year sales target for its consumer goods business in a bid to challenge foreign giants like Unilever, according to related party transactions it plans to undertake during the current financial year and over next four years. The disclosure part of RIL's Annual Report will be put up to the shareholders at the Aug. 28 Annual General Meeting.
The Mukesh Ambani-led conglomerate has set a goal to achieve annual sales of Rs 6,000 crore from Reliance Consumer Products Ltd. in the current fiscal year, according to its latest annual report. The company further expects sales of Rs 15,000 crore every year between FY25-28.
The incorporation of Reliance Consumer Products Ltd. represents the first of many steps for the country's largest retailer to participate fully in the staples and consumer goods sector outside its own distribution network, according to a Nomura's note. The FMCG business launched several products during the year including ‘Independence' brand and the beverage brand, ‘Campa'. Its personal care portfolio includes brands like Glimmer, Get Real, Safe Lite, Petals, Mothercare, and Jive, among others, according to its website. Most of these brands are sold across its supermarkets and hypermarkets—Reliance Fresh and Reliance Smart. But they are in talks to hire more distributors to take these products to mom-and-pop stores.
RCPL aims to build a house of brands, providing a wide range of products that serve the daily needs of millions of Indians at reasonable price points.
"The consumer brands business is on a strong growth path with all categories performing well," according to the company.
Reliance has also acquired German wholesaler Metro's cash and carry operations in India this year. The management estimates sales of Rs 8,000 from Metro India in FY24. In each of the four subsequent financial years till FY28, the company has set an annual sales target of up to Rs 15,000 crore.
Metro introduced the cash and carry business model in India back in 2003. It currently has 31 large format stores across 21 cities. The multi-channel wholesaler reaches three million business-to-business customers, of which about a million are frequent customers. Reliance Retail can further leverage Metro India's strengths in sourcing goods at competitive prices.
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