Mukesh Ambani's big move, Reliance to transfer all consumer business from…, following path of Tata, Birla, Raymond, Vedanta and…
According to the scheme filed with the NCLT, Reliance is transferring and vesting the FMCG brands business from Reliance Retail Ltd (RRL) to the newly formed entity, New Reliance Consumer Products Ltd (New RCPL).
The Mumbai bench of the National Company Law Tribunal (NCLT) on June 25 asked to convene a meeting for approval of the internal restructuring process, under which its consumer business is transferred as a going concern on Slump Sale. Why Is Reliance Transferring Its Consumer Goods Business?
Explaining the reasons, Reliance firms said the Consumer Brands Business is one of building brands, managing the entire product lifecycle from research, development, manufacturing, distribution and marketing.
'This is a large business by itself, requiring specialised and focused attention, expertise and different skill sets as compared to retail business. This business also entails large capital investments on an ongoing basis and can attract a different set of investors,' it said.
This composite scheme, part of the internal restructuring of companies in the RIL group to house the Consumer Brands Business in New RCPL and will have RIL and other investors of RRVL holding the same percentage shareholding as in RRVL, they said.
The scheme proposes transferring and vesting the FMCG brands business from Reliance Retail Ltd (RRL) to the parent firm RRVL as a going concern on Slump Sale, merger of RCPL with RRVL and demerger of consumer goods business from RRVL to New RCPL in the third stage. Both RRL and RCPL are wholly owned arms of RRVL. What Is Current Structure Of Reliance Retail ?
Presently, Reliance's consumer goods business is spread in three verticals – RRL, Reliance Retail Ventures Ltd (RRVL) and RCPL. The boards of directors of these companies on April 25, 2025, passed a resolution to transfer the FMCG Brands Business Undertaking from RRL to RRVL.
Reliance Industries Ltd, the parent entity, holds 83.56 per cent in RRVL while other investors hold 16.44 per cent.
NCLT directed that a meeting of the unsecured creditors of RRL, RRVL and RCPL be convened and held within 70 days from the date of the order being uploaded on its website, for the purpose of considering and approving the Scheme.
RRVL primarily carries on the business of supply chain and logistics management for the retail business of Reliance, while RCPL is engaged in manufacturing, distribution, selling and marketing of multiple products under the FMCG category and investments in subsidiaries and joint ventures engaged in the FMCG category retail business. Reliance Following Path Of Tata, Birla, Vedanta
Reliance is not the first Indian company to list separate businesses as distinct entities to unlock their true value. Earlier, companies like Tata Motors, Aditya Birla Fashion and Retail, Quess Corp, Siemens, Raymond, Vedanta, and ITC have also adopted similar strategies.
Take Siemens, for instance last month, Siemens Energy India, which was demerged from Siemens, was valued at over Rs 1 lakh crore. Post-listing, the combined valuation of the two companies surged to Rs 2.14 lakh crore, compared to just Rs 1 lakh crore before the separation.
(With Inputs From PTI)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
14 minutes ago
- Economic Times
Two senior Chinese ministers attend India's Independence Day reception in Beijing
Ahead of Prime Minister Modi's likely visit to China for the SCO summit, senior Chinese ministers attended India's Independence Day reception in Beijing, marking the first such event since the pandemic and Ladakh standoff. Sun Haiyan expressed China's willingness to enhance mutual trust and cooperation with India for stable relations. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Two senior Chinese ministers attended India's Independence Day reception in Beijing on gesture by the Chinese government comes ahead of Prime Minister Narendra Modi's likely visit to China for the annual summit of the Shanghai Cooperation Organisation later this Minister of Foreign Affairs Miao Deyu and Vice Minister Sun Haiyan of the International Department of the ruling Communist Party of China were the chief guests at a well-attended reception, held for the first time since the COVID-19 pandemic and over the year-long eastern Ladakh congratulated India and said that the relations between the two countries are currently maintaining a momentum of improvement and development, the International Department of the Communist Party said in a press is willing to work with India to implement the important consensus reached by the leaders of the two countries, enhance political mutual trust, expand exchanges and cooperation, and promote the healthy and stable development of relations, she Communist Party of China is willing to strengthen exchanges and dialogue with all political parties in India and play a positive role in improving and developing relations, she his address, Indian Ambassador to China Pradeep Kumar Rawat highlighted the importance of India-China relations."Our two peoples have played a significant role in shaping human history, and we have a significant responsibility to promote peace and development," he said."There is a need for India and China to work together to realise the aspirations of 2.8 billion people. Amid global uncertainties, relations between India and China are a factor of stability and balance," he said it was important for the two countries to have a balance in relations - whether it is political, economic or security, based on shared principles of mutual respect, mutual sensitivity and mutual he added, had witnessed "periods of great development and also of serious challenges".The presence of Vice Minister Sun at the reception assumed significance as earlier in the day, an international news agency reported that she had been detained for questioning by the presence at the reception, however, indicated the report was Rawat hoisted the tricolour as the Indian Embassy here celebrated the 79th Independence Day at a colourful ceremony attended by a large number of the diaspora Minister Modi is expected to attend the two-day summit of the Shanghai Cooperation Organisation starting on August 31 in Tianjin.
Time of India
17 minutes ago
- Time of India
EV fast chargers have a surprising health downside
Hundreds of public fast chargers are popping up across the US to serve electric vehicle drivers seeking a cleaner alternative to gas-powered cars. But they come with a surprising risk: Charging stations create air pollution. Independence Day 2025 Modi signals new push for tech independence with local chips Before Trump, British used tariffs to kill Indian textile Bank of Azad Hind: When Netaji Subhas Chandra Bose gave India its own currency While EVs contribute vastly less to air pollution than combustion-powered vehicles, fast-charging stations are what a recent study called an 'overlooked source of air pollution.' The US added 703 high-speed charging stations in the second quarter, bringing the total across the country to 11,400, according to Energy Department data. Charging firms are planning to install hundreds more before year-end, making it important to address health risks now before the infrastructure becomes entrenched. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Undo The problem 'can be solved,' said Yuan Yao, a co-author of the study and a postdoctoral researcher at the University of California, Los Angeles' Fielding School of Public Health. 'We want to make sure that EV adoption is clean.' The emissions are likely tied to the fans used in direct current fast chargers ' power cabinets. While they help keep equipment cool, the recent study indicates they likely have the unintended side effect of kicking up particles from tires, brakes and dust into the air. Live Events Researchers took air quality measurements at 50 direct current fast charging stations in Los Angeles County, California, the majority of which were Tesla Inc. Supercharger locations. The company didn't respond to a request for comment. The average concentration of fine particulate matter in the air at the charging sites was 15.2 micrograms per cubic meter, slightly higher than what researchers found at gas stations and significantly higher than in other urban locations such as parks. Nearly half of the charging sites had daily fine particulate matter emissions that exceeded the World Health Organization's air quality guidelines. (The study focused on non-exhaust emissions and therefore didn't measure many types of pollution related to gas-powered cars.) EV charging companies can include filtration in charging cabinets to mitigate pollution, the study's authors said. They can also avoid putting the chargers near places like schools and residential areas. Some companies say they've already taken measures to reduce the risks of particulate matter. 'On all of our current DC fast chargers, ChargePoint enforces a minimum height for the air intake and exhaust to limit the ingress of dust, debris and water,' said a spokesperson for ChargePoint Holdings Inc. , which operates the largest charging network in the US. The company plans to add air filters to its 'DC chargers to further reduce the risk of dust or water entering the system, or particulates being expelled.' Gas-powered cars are still a much more potent health risk, both because of their emissions and gas stations' environmental impact, said Joe Allen, an air quality expert and professor at the Harvard T.H. Chan School of Public Health who was not involved in the study. Research shows fueling stations are major sources of volatile organic compounds, a category of chemicals that includes the carcinogen benzene, while internal combustion vehicles produce smog-forming pollutants. Greenhouse gas emissions also adversely affect health due to their influence on climate change. 'I'd much rather be charging my EV than filling my gas-powered car at the gas station,' Allen said. 'As we expand EV charging — especially fast-charging stations — we should also pay attention to potential emissions from the charging equipment itself,' Yao said. --With assistance from Kyle Stock.
Time of India
39 minutes ago
- Time of India
India to ally with Russia, China to end America's economic 'hooliganism': Yoga guru Ramdev
Yoga guru Ramdev on Friday claimed that India will soon join hands with Russia and China to put an end to the "political and economic hooliganism of America". Independence Day 2025 Modi signals new push for tech independence with local chips Before Trump, British used tariffs to kill Indian textile Bank of Azad Hind: When Netaji Subhas Chandra Bose gave India its own currency After hoisting the national flag at the Patanjali University and Patanjali Yoga Bhavan here to mark the 79th Independence Day, Ramdev claimed a new alliance is being formed in the world between India, Russia and China, besides some other European and central Asian countries. Stating that the new alliance will carry a very good message for the world, he said India has decided to "stand up and not bow down before America". Attacking US President Donald Trump for his "Indian economy is dead" remark, Ramdev said it is not only alive, but also progressing rapidly. "Three-hundred years ago, India's economy was worth 400-500 trillion dollars, which was first looted by the Mughals and then by the British. But India is still standing tall today," he claimed. Live Events "We have to make India self-reliant and go for indigenous (swadeshi) products," Ramdev said. He also made the Patanjali workers and seers present on the occasion take a pledge to adopt indigenous products in the field of economics, education and medicine to achieve "ideological and intellectual freedom". "India is engaged in creating a new world order to end the political and economic hooliganism of America. If a new alliance is formed between Russia, China, India, some countries from central Asia, some from Europe and Africa, we will show America and Trump their place. There will be no empire of Trump and America in the world," he said. On Pakistan's nuclear threat, he ridiculed the neighbouring country and said even the few nuclear bombs it has are not its own but belong to another nation. "Not only this, the country which has these nuclear bombs has hidden them to pressurise India. But India put an end to this threat by bringing Pakistan to its knees through Operation Sindoor ," he said. The general secretary of Patanjali Yogpeeth, Balkrishna, also spoke on the occasion and highlighted the work done by Patanjali in the field of ayurveda, yoga and education.
