Reliance Retail Transfers Consumer Goods Division to Newly Formed RCPL

Reliance Industries Ltd. (RIL) is set to reorganize its consumer goods operations, transferring the fast-moving consumer goods (FMCG) business from Reliance Retail Ltd. (RRL) to a newly created entity — New Reliance Consumer Products Ltd. (New RCPL) — as part of an internal restructuring effort.

According to a scheme filed before the National Company Law Tribunal (NCLT), the transfer will occur through a slump sale, allowing the consumer brands business to move to the new entity as a going concern. The Mumbai bench of the NCLT approved the convening of meetings with unsecured creditors of RRL, Reliance Retail Ventures Ltd. (RRVL), and New RCPL within 70 days of the order’s publication to consider and vote on the restructuring plan.

The restructuring is part of Reliance’s broader strategy to streamline and consolidate its rapidly growing consumer products business, which includes brand creation, product development, manufacturing, distribution, and marketing across India. Company filings highlight that the consumer business requires a focused approach and a different set of operational and financial capabilities compared to its core retail operations.

“This is a large business requiring specialized attention and ongoing capital investment,” Reliance stated in its submission. “It also holds the potential to attract a different class of investors, distinct from those engaged in the broader retail space.”

The newly formed RCPL will be wholly aligned in ownership with RRVL, ensuring the same shareholding structure is retained by RIL and other investors. This move is seen as an effort to sharpen the group’s focus on FMCG as a standalone high-growth segment while allowing greater operational autonomy.

While RRL will continue managing supply chain and logistics functions for the retail vertical, New RCPL will focus exclusively on manufacturing, marketing, and selling FMCG products, in addition to managing investments in related subsidiaries and joint ventures.

The internal restructuring is viewed as a step towards unlocking value in Reliance’s consumer-facing businesses, potentially laying the groundwork for future fundraising or a public listing of the consumer products arm.

(Source: PTI)