In a significant move within India's fast-moving consumer goods (FMCG) sector, Reliance Industries Ltd has secured a controlling interest in the renowned Tamil Nadu-based heritage brand, Udhaiyam Agro Foods Private Ltd. The deal, finalized on Thursday, marks a strategic expansion for Reliance's consumer products arm.
Details of the Strategic Acquisition
The acquisition was executed by Reliance Consumer Products Ltd (RCPL), the FMCG subsidiary of the oil-to-telecom conglomerate. While the financial terms remain undisclosed, reliable sources confirm that Reliance has purchased over 70% stake in the company, granting it majority control.
Udhaiyam Agro Foods, a brand with a legacy spanning more than three decades, has established a formidable presence in Tamil Nadu. It boasts an annual revenue exceeding Rs 600 crore from a diverse portfolio that includes staple categories like pulses, rice, spices, snacks, and ready-to-use idli batter. Its strength lies in a deep-rooted and extensive distribution network across the state.
Future Plans and Leadership Continuity
Under the new ownership structure, the founding promoters, S Sudhakar and S Dinakar, will retain a minority shareholding. They will continue to be actively involved in the company's day-to-day operations, ensuring brand continuity and leveraging their decades of experience.
The primary objective of this partnership is to catapult the well-regarded regional brand onto the national stage. T Krishnakumar, a director at RCPL, emphasized Udhaiyam's strong consumer trust built over decades in Tamil Nadu. He stated that the acquisition will accelerate the brand's growth beyond its home market by utilizing RCPL's vast distribution reach, supply chain capabilities, and marketing prowess.
Implications for the FMCG Landscape
This acquisition is a clear indicator of Reliance's aggressive ambitions in the branded foods and FMCG space. For Udhaiyam, the alliance opens access to unparalleled resources and a pan-India platform. S Sudhakar, Managing Director of Udhaiyam Agro Foods, expressed optimism, noting that the partnership unlocks fresh growth opportunities for the brand.
The move is expected to intensify competition in the packaged staples and traditional foods segment, pitting the combined strength of Reliance and Udhaiyam against established national and regional players. It signifies a major consolidation in the sector, where heritage brands are joining forces with large corporate groups to achieve scale and wider market penetration.
