Reliance Industries Ltd. is transferring all its consumer goods brands to a new wholly-owned subsidiary as the billionaire Mukesh Ambani-led oil-to-telecom conglomerate readies for an initial public offering for its retail business.The brands — spanning apparel, fashion, food, personal care and beverages — currently housed under Reliance Retail Ltd., Reliance Retail Ventures Ltd., and Reliance Consumer Products Ltd. will be moved to the so-called New Reliance Consumer Products Ltd. or RCPL, a National Company Law Tribunal order dated June 25 said.
“This is a large business by itself requiring specialized and focused attention, expertise and different skill sets as compared to retail business,” the Reliance firms said in their filing to the NCLT.
The move will allow the capital-intensive consumer goods business to attract a different set of investors, the filing added. It will also give a sharper focus to the retail business which is preparing for a public offering.Under the arrangement, New RCPL will manufacture, distribute, sell and market consumer goods. It will also invest in subsidiaries and joint ventures related to this business, the NCLT filing said.
“This is a large business by itself requiring specialized and focused attention, expertise and different skill sets as compared to retail business,” the Reliance firms said in their filing to the NCLT.
The move will allow the capital-intensive consumer goods business to attract a different set of investors, the filing added. It will also give a sharper focus to the retail business which is preparing for a public offering.Under the arrangement, New RCPL will manufacture, distribute, sell and market consumer goods. It will also invest in subsidiaries and joint ventures related to this business, the NCLT filing said.
The development comes as analysts flag signs of improvement in the Reliance’s retail business after an underwhelming performance in the year ended March 31 due to a consumption slowdown and overhaul of its store network.
Reliance’s beverage brand Campa Cola achieved double-digit market share in key regions — barely two years after it was relaunched in India. Its beauty care chain Tira offers brands from American Smashbox and Estee Lauder to Korea’s Sulwhasoo and homegrown newbie Re’equil.
