Why Reliance Is Acquiring Regional FMCG Brands Like Udayam Agro Foods

Reliance Consumer Products is reportedly planning to acquire Chennai-based Udayam Agro Foods in a transaction whose size has not been disclosed. Udayam manufactures staple food items, snacks, and ready-to-cook breakfast mixes. While it may not be a nationwide household name, the brand enjoys deep trust and familiarity across South Indian homes. This embedded presence in daily consumption is precisely what makes it attractive.

This approach aligns closely with Reliance’s recent FMCG strategy. The company has repeatedly targeted brands with strong regional roots—identifying loyal consumer bases first, then expanding reach through aggressive distribution, pricing efficiencies, and scale. Previous moves across beverages, personal care, and food categories follow the same pattern.

Notably, reports indicate that Udayam’s promoters will retain a minority stake after the acquisition. Such a structure typically reflects a partnership model, where local expertise, operational knowledge, and brand authenticity are preserved even as capital and scale are added.

This transaction is not an isolated event. It fits into a broader restructuring of Reliance’s consumer business. The group recently carved out its FMCG operations into a separate entity—Reliance Consumer Products Limited (RCPL)—creating a focused platform for building and scaling consumer brands.

Under RCPL, Reliance has already assembled a wide portfolio spanning food, beverages, home care, personal care, and beauty. The intent is clear: to create a vertically integrated, end-to-end consumer ecosystem.

The ambition is backed by scale. Reliance Consumer has signed a ₹40,000 crore agreement with the government to develop food manufacturing infrastructure across the country. In FY25, revenues crossed ₹11,000 crore, underlining the seriousness of the expansion.

This strategy is unfolding against a rapidly changing FMCG backdrop. Established legacy brands are facing pressure from lean, regionally rooted players that operate with sharper pricing, efficient supply chains, and direct access to consumers through quick-commerce platforms. As a result, regional brands have become highly sought-after acquisition targets.

Reliance’s interest in Udayam reflects this broader shift. The next phase of Indian FMCG growth is increasingly defined by regional-to-national transitions, offline-to-omnichannel distribution, and agility replacing legacy dominance.

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