Reliance is trying to become "the coolest one"
Reliance Retail
has set its eyes on selling refrigerators, ACs and washing machines in a segment dominated by global giants such as LG and Samsung. The company is rolling out a bold strategy anchored in legacy, scale and disruption to dominate the fast-growing
consumer durables
business. Reliance Retail has been expanding its private-label portfolio and growing its footprint in home electronics and appliances, a segment boosted by rising incomes, urbanisation and mounting competition. As of June 2024, India's consumer goods market was the fastest-growing among major economies and could nearly double to Rs 3 lakh crore by 2029, according to an EY report.
Reliance Retail's foray into the consumer durables segment represents a strategic expansion that mirrors its earlier playbook in the
FMCG
space -- reviving legacy brands, leveraging distribution muscle and disrupting a multinational-dominated market with a "
Made in India
" narrative. The recent acquisition of the iconic
Kelvinator
brand marks a significant milestone in this journey and signals the company's long-term ambitions in India's fast-growing
home appliances
market.
Explore courses from Top Institutes in
Select a Course Category
Artificial Intelligence
Degree
Product Management
Finance
Public Policy
Data Science
Healthcare
Data Science
Project Management
Others
Digital Marketing
MCA
Management
healthcare
Operations Management
Data Analytics
Design Thinking
MBA
Cybersecurity
others
PGDM
Technology
CXO
Leadership
Skills you'll gain:
Duration:
7 Months
S P Jain Institute of Management and Research
CERT-SPJIMR Exec Cert Prog in AI for Biz India
Starts on
undefined
Get Details
From licensing to ownership: Kelvinator's strategic role
Reliance Retail on Friday announced that it has bought Kelvinator from Sweden's Electrolux to broaden its range of offerings in the durables market. Kelvinator, a legacy brand going a century back, is known for pioneering home refrigeration and its popular 'The Coolest One' tagline in the 1970s and 80s.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
20 Pieces of Clothing Older Women should Avoid
womentales.com
Learn More
Undo
Reliance Retail's move to fully acquire Kelvinator, from being a licensee since 2019, transforms its relationship with the brand from a tactical play into a strategic asset. The Kelvinator name, synonymous with refrigerators and washing machines for decades, still commands trust among older Indian consumers. Although its presence had faded post liberalization and with the dominance of Korean and Japanese players, the brand's latent equity makes it a strong candidate for revival under Reliance's stewardship.
By integrating Kelvinator into its portfolio, Reliance gains more than just a brand. It inherits a lineage of product design, recall and goodwill that can be scaled rapidly across its retail empire. The plan is to push not just refrigerators and washing machines, but expand into air conditioners and kitchen appliances, aligning with rising demand from a growing middle class and increasing urbanisation.
Live Events
Wyzr
, the opening gambit
The acquisition dovetails with Reliance Retail's earlier 2024 launch of Wyzr, a homegrown consumer durables brand positioned as a disruptor to multinationals like LG, Samsung and
Whirlpool
. Wyzr marks Reliance's intent to go beyond legacy brands and build new-age offerings tailored to Indian consumers, with competitive pricing and design suited for Indian conditions.
Reliance's dual-brand strategy -- Kelvinator as a legacy player and Wyzr as an aspirational, value-driven brand -- allows it to target both traditional and younger, aspirational consumer segments. The company is reportedly engaging with domestic contract manufacturers while planning to build its own facilities in the medium term, aiming at control quality, cost and innovation.
Haier
and Whirlpool in crosshairs
Reliance isn't just looking to grow organically but actively eyeing major inorganic opportunities. Reports of its interest in a strategic stake in Haier's India operations, as well as its bid for controlling interest in Whirlpool's India business, underscore its intent to consolidate the fragmented consumer durables landscape. These moves, if successful, could catapult Reliance into the top tier of players in India's appliance market overnight.
With Haier looking to localise and Whirlpool potentially changing hands, Reliance is positioning itself as a natural homegrown partner for global giants who need distribution and operational support in India's complex market. The competition is stiff as Bharti Group and Havells are also in the fray for Haier and Whirlpool respectively. But Reliance's deep pockets and operational muscle give it a clear edge.
FMCG playbook redux: From Campa to Kelvinator
The consumer durables strategy closely echoes Reliance's approach in FMCG, where it bought legacy brands like Campa Cola, Raskik and Sosyo to quickly build shelf presence and brand recognition. The approach is clear --- acquire heritage brands, modernize them, and plug them into Reliance's expansive distribution system and scale fast.
This strategy bypasses the long gestation period required to build new brands from scratch and leverages nostalgia and trust, both powerful emotional drivers in Indian consumption.
What sets Reliance apart from other players is its integrated ecosystem, from retail stores and online platforms to telecom and payments businesses. These allow it to not just sell products, but also create whole systems for marketing, logistics and after-sales support. Consumer durable products sold through this ecosystem generate rich consumer data, enabling personalised offers, servicing models and upselling across product categories. Moreover, Reliance's deep discounting power, control over shelf space and fast execution give it significant advantages over legacy brands that rely on traditional dealer-distributor models.
So far, Reliance's own brands, Reconnect and Wyzr which it has founded, have met with limited success. But it is trying to majorly disrupt the market by combining the nostalgia and trust of legacy brands like Kelvinator with the energy of new entrants like Wyzr, and by aggressively pursuing M&A deals with global majors. Reliance may want to do a Jio in the consumer durable market but it's a long-term bet.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
29 minutes ago
- Business Standard
CAG flags excise lapses in Maharashtra, cites revenue loss of several crore
The Comptroller and Auditor General (CAG) of India has pulled up the Maharashtra state excise department for serious lapses in its operations, which have led to a substantial revenue shortfall. The CAG report pointed out that due to incorrect assessment of licence renewal fees, the state lost Rs 20.15 crore in revenue and Rs 70.22 crore in interest. The audit further stated that failure to implement revised rates for supervision fees had caused an additional shortfall of Rs 1.20 crore. According to the report, the then Excise Commissioner exempted excise duty on old stock of beer without obtaining prior approval from the state government. The report also highlighted that the delayed submission of mild beer samples for chemical analysis had hampered tax recovery to the tune of Rs 73.18 crore. "Under the Bombay Prohibition (Privilege Fee) Rules, 1954, a provision exists to charge fees for changes in partnership. However, no such provision was applicable to significant changes in shareholding of public limited companies, resulting in a loss of Rs 26.93 crore to the state," the CAG observed. The absence of a provision in the Excise Act for declaring production cost also led to a missed opportunity for the government to earn additional revenue, it added. The audit further revealed that in the case of Canteen Stores Department (CSD), the production cost of 11 products or brands was undervalued, causing a revenue loss of Rs 38.34 crore in excise duty. Additionally, errors in the purchase cost of imported foreign liquor resulted in non-collection of Rs 11.48 crore between August 2018 and March 2022, and Rs 2.89 crore between May 2017 and March 2022. The cumulative effect of these lapses caused a massive revenue loss for the government, raising serious concerns about the functioning of the Excise Department, the CAG stated.
India.com
29 minutes ago
- India.com
India together with Israel and Turkey in..., CDS Anil Chauhan exposes Pakistan, Islamabad on high alert due to...
India together with Israel and Turkey in..., CDS Anil Chauhan exposes Pakistan, Islamabad on high alert due to... India's Chief of Defence Staff (CDS) General Anil Chauhan recently spoke about the brief four-day clash between India and Pakistan that took place in May. He revealed that during this time, Pakistan sent several drones into Indian territory, but many of those drones didn't even work properly. In fact, some were found in nearly perfect condition. CDS Chauhan was speaking at an event in Delhi, where he emphasized that modern wars can't be won with outdated systems. He praised the quality of weapons made in India and highlighted the country's growing strength in using tactical drones while putting India in the same position as countries like Israel and Turkey. Talking about the attack, he said that Pakistan had used drones without weapons and also launched 'loitering munitions.' These are special types of drones that hover in the air and strike when they spot a target. However, none of these caused any harm to Indian soldiers or civilians. Most of the drones were shot down, and some were recovered without damage. This action was part of Operation Sindoor, which was launched on April 22, right after a deadly terrorist attack in Pahalgam. Made-in-India anti-drone systems are very important CDS Chauhan has said that Indian-made weapons played a key role in Operation Sindoor. He stressed how important it is for India to build its own counter-UAS (Unmanned Aerial System) technology systems that can detect and shoot down enemy drones. He explained that this operation proved how crucial such systems are for our safety. He said India must rely on its own strength and build what it needs, rather than depending on other countries. He added that recent wars around the world have shown that drones can completely change the course of a battle and therefore India must be ready with the right technology. CDS on buying defence technology from other countries General Chauhan also said that buying defence technology from other countries is not a good long-term strategy. It makes India dependent and weakens our ability to respond quickly in times of crisis. If we build everything in India i.e. from design to final product, we not only protect our secrets but also lower costs, increase production, and stay better prepared. He added, 'When we build our own defence systems, it becomes harder for the enemy to know our real strength. That gives us an advantage — we can surprise them when needed.'
Hans India
29 minutes ago
- Hans India
MSMEs buck overall headline trend in credit growth in India
New Delhi: The Indian credit market is witnessing some structural shifts with headline bank credit growth and micro, small and medium enterprises (MSME) credit has bucked the overall headline trend in credit growth, according to an SBI report. An increased supply of credit to existing borrowers has been observed, with the MSME sector witnessing a notable improvement in balance sheet serious delinquencies — measured as 90 to 120 days past due (DPD) and reported as 'sub-standard', which has dropped to a five-year low of 1.8 per cent. This improvement, particularly among borrowers with exposures ranging from Rs 50 lakh to Rs 50 crore, marked a 35 basis points decline from the previous year, according to Dr Soumya Kanti Ghosh, Group Chief Economic Advisor, State Bank of India. There has been a definition change for the MSME sector wherein, as an example, for medium enterprises the turnover limit has been increased to Rs 500 crore. Thus, it is possible that MSME credit growth could be enlarged even further, Ghosh mentioned in the report. The formalization of MSMEs with the help of URN seeding is giving necessary fillip to the MSME credit growth. Udyam registration number (URN) is a permanent identification number for businesses looking to register themselves under the MSME definition and to seek the guarantee cover. Till June 27, a total of 2.72 crore registration has been done through Udyam Assist Platform. 'The government has taken great initiative by providing enhanced guarantee cover to various category of MSME borrower — enhancing the CGTMSE cover from Rs 5 crore to Rs 10 crore, introduction of Mutual Credit Guarantee Scheme for MSME manufacturing sector (for loans up to Rs 100 crore), increasing the Credit Guarantee cover for loans to Startup from Rs 10 crore to Rs 20 crore, introduction of Credit Guarantee covers for Exporters for Term Loan of up to Rs 20 crore. All these initiatives also give good boost to MSME credit growth,' Ghosh emphasised. India Inc has significantly deleveraged balance sheet and increased cash holding. In last two years (FY24 and FY25), cash and bank balance by Indian Corporates jumped by around 18-19 per cent. Major sectors reporting increased cash holdings include IT, Automobiles, Refineries, Power, Pharma etc. Cash and Bank balance of India Inc, ex BFSI, is estimated to be around Rs 13.5 lakh crore in FY25. Thus, cash accruals are enough to fund expansion plans, according to the SBI report.
