Rs 44000000000! But Mukesh Ambani wants to separate this business from Reliance because…, it is…
During the Q1 FY2025 earnings conference call, it was confirmed that the FMCG vertical of Reliance Retail will be demerged and launched as a standalone company. Reliance Retail Growth
Dinesh Taluja, CFO and Head of Corporate Development at Reliance Retail, said the company witnessed 11% year-on-year growth in Q1. Both the grocery and fashion segments performed strongly, while consumer electronics saw some slowdown due to an early monsoon. He stated that Reliance has a well-diversified portfolio in multiple categories which gives stable performance.
During this quarter, Reliance opened 388 new stores, taking the total store count to over 19,600. Additionally, the company recorded a 16% YoY rise in customer transactions. The FMCG division saw big momentum, with Q1 revenue reaching Rs 4,400 crore, nearly double compared to the same period last year. Reliance Retail Sales
Reliance noted that nearly 70% of its FMCG sales come from general trade, i.e., small neighborhood stores. While Reliance operates its own retail outlets (both B2C and B2B), it has also developed a nationwide distribution network to ensure product availability across regions.
During this year's IPL, Reliance launched an ad campaign for its Campa Cola brand which gave good results. The company thinks this will also give stronger future sales for Campa and other products.
Reliance is also setting up new factories and R&D labs across India. These facilities will incorporate automation and advanced technologies to ensure high-quality products at affordable prices. The goal is to make consumer products that are both appealing and economical. Reliance Retail New FMCG Brand
The company stated that while its FMCG and retail businesses currently function distinctly, the demerger will formalize this separation. Both businesses will operate separately with professional independence. The new FMCG company will soon operate under the name 'Reliance Consumer Products Limited (RCPL),' housing brands like Campa Cola.
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