Reliance Consumer Products Ltd. (RCPL), the FMCG arm of Reliance Retail Ventures, has doubled down on its disruptive market strategy, offering distributor margins of 6-8%—nearly twice the industry average of 3-5%. The move aims to bolster the sales of RCPL’s growing portfolio of groceries and daily essentials, executives familiar with the development revealed.
RCPL, which markets products under the Independence brand (edible oils, staples, and pulses, Alan Bugles snacks, and Snactac biscuits), is aggressively leveraging competitive pricing. Most RCPL brands are priced 20–40% lower than rivals, setting the stage for an industry-wide price war.
“Reliance is replicating its Campa Cola playbook across all categories. It’s a disruptive strategy designed to incentivize the supply chain and build momentum for new entrants,” an executive stated, adding that the higher margins initially target smaller markets before scaling up to metros.
RCPL’s strategy is firmly rooted in general trade channels, particularly kirana stores, which account for 85-90% of sales in tier-2 and smaller markets. Unlike other major players, RCPL’s presence on quick commerce platforms remains limited.
The company is also providing sales force support to distributors, with retail margins structured more as launch incentives given RCPL’s modest advertising spends.
Major FMCG players like Britannia, Hindustan Unilever, Nestlé, Parle, and Reckitt are bracing for heightened competition. Coca-Cola and PepsiCo, for instance, have responded to Campa Cola’s aggressive pricing (₹10 for 200 ml compared to their ₹20 for 250 ml) with higher trade-level promotions in markets where Campa operates.
“Reliance’s foray into FMCG on a national scale will likely lead to higher margins across the industry,” a distributor executive remarked. “With increasing competition from regional players, terms of trade are becoming critical, and Reliance is pushing the boundaries.”
As the Mukesh Ambani-led conglomerate accelerates its FMCG ambitions, the ripple effects are expected to reshape industry dynamics, driving innovation and recalibrating pricing strategies across the sector.