Reliance expands FMCG presence in South

Reliance Consumer Products has acquired a 76% stake in Udhaiyams Agro Foods via a joint venture, investing ₹380 crore. 

Context: RCPL is the FMCG arm of Reliance Industries, having a portfolio across staples and daily essentials. Udhaiyams Agro Foods, best known for its Udhaiyam brand is based in Tamil Nadu, selling rice, spices, snacks and idli batter.

The deets: RCPL picked up 1.52 lakh equity shares at ₹25,000 per share, translating to a 76% holding, while Udhaiyams’ promoters retain a minority stake. The deal was executed via a preferential allotment. 

Why it matters: this acquisition gives Reliance a strong entry point into South India, particularly Tamil Nadu, where Udhaiyam enjoys deep household trust and a dense distributor network that’s hard to replicate quickly. 

It also strengthens Reliance’s push into branded staples and fresh-to-packaged foods like rice, spices and idli batter, high-frequency categories with steady demand and repeat consumption. 

Zoom out: Reliance has been on an FMCG shopping spree, snapping up brands like Campbell Retail (Campa), Ravalgaon, Sosyo, and Lotus Chocolate, while also building in-house labels across staples, beverages, and packaged foods. 

The strategy is to buy trusted regional brands, plug them into Reliance’s massive retail and distribution engine, and scale fast.