Reliance Consumer buys majority stake in Tamil Nadu’s Udyams: ₹668 crore business of 30-year-old company, makes ready-to-cook breakfast

Reliance Consumer Products Limited (RCPL), the FMCG arm of Mukesh Ambani’s Reliance Industries, on Thursday announced the purchase of majority stake in Tamil Nadu’s Udyams Agro Foods Private Limited.

RCPL will hold controlling stake in this joint venture, while the old promoters will continue to hold minority stakes. However, financial details of the deal have not been disclosed yet.

Udyams Agro is a 30 year old company

Udyams Agro Foods is a 30 year old Chennai based company. It has a business of about ₹668 crore. There is strong business in staples (rice, pulses), spices, snacks and ready-to-cook breakfast mixes (like idli batter). Has deep distribution in Tamil Nadu and neighboring markets. The company competes with players like Tata Consumer, iD Fresh and MTR.

RCPL Director said – Udyam brand needs no introduction

RCPL Director T Krishnakumar said, “The Udyam brand needs no introduction. It has been offering healthy food choices for decades. It is a reflection of Tamil Nadu’s rich heritage, scientific temper and superior quality.

Udayams Agro Foods MD S Sudhakar said, “The partnership with RCPL is a new chapter for the company. The brand has delighted consumers in Tamil Nadu for decades. Udayams is synonymous with the best quality in branded pulses in homes.”

Deal part of Reliance’s strategy

This deal is part of Reliance’s strategy. Strong wants to expand business on national scale by buying regional brands. The company has already done this in beverages and personal care. Consolidation is increasing in the consumer sector. Big players are facing competition from regional and digital-first brands. Because of this, small players are being bought by big rivals.