Reliance Industries (RIL) had announced its foray into the daily use goods ie FMCG sector this week itself. It is being told that under this, RIL has acquired cold drink brand Campa (Reliance Industries acquires Campa).
New Delhi: Reliance Industries Limited has acquired domestic cold drink brand Campa from Delhi-based Pure Drinks Group. Sources gave this information. According to sources, the deal is estimated to be around Rs 22 crore and Reliance Retail Ventures will launch it in the local markets around Diwali. Significantly, this week itself, Reliance had announced its foray into the daily use goods ie FMCG sector.
Reliance Retail Ventures, the retail arm of billionaire businessman Mukesh Ambani’s Reliance Group, has already introduced its three variants – cola, orange and lemon flavors at select stores. Currently Campa is packaged by Jalan Food Products.
The Indian soft drink market is dominated by American cola companies – Coca-Cola India and PepsiCo. The acquisition is part of Reliance’s plan to enter the fast-growing consumer goods space.
Reliance Retail Ventures Limited (RRVL) director Isha Ambani, while addressing shareholders at the annual general meeting earlier this week, said that the company would start its FMCG business.
Reliance is already in talks with several manufacturers as part of its expansion drive in the FMCG segment. These will be announced after finalizing the deals.
According to an estimate, the Indian FMCG market is worth over $100 billion. It is dominated by multinationals like Hindustan Unilever, Reckitt, P&G, Nestle and domestic companies like Dabur, Emami and Marico.
Reliance will now compete with the segment leader Adani Wilmar and other FMCG companies. Campa Cola is a drink created by Pure Drinks Group in the 1970s.
Pure Drinks Group introduced Coca-Cola to India in 1949 and was the sole manufacturer and distributor of Coca-Cola until 1977. Coke was asked to leave the country in 1977.
After this, in the absence of any foreign competition, the Campa brand dominated the Indian market for the next 15 years. At this time it is sold in limited numbers only in certain markets.