Mumbai2 days ago
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Mukesh Ambani has launched a restructive process in its leadership corporate group Reliance Industries. In this, a new company is being formed by combining more than 15 FMCG brands like Campa Cola, which is currently part of Reliance Retail Ventures.
Its purpose is to pay special attention to these products and to attract investors who are only interested in the FMCG sector. Ambani’s strategy will help the group to bring on a new track of sharp growth.
New Company- New Reliance Consumer Products Limited
The company can create a new company New Reliance Consumer Products Limited by combining all the brands of its three retail units. It will work directly under Reliance Industries, just as live.
IPO can come at more than 8.5 lakh crore valuations
According to Reliance’s latest data, the value of Reliance Retail Ventures is more than Rs 8.5 lakh crore. If its IPO comes, it can be one of the biggest public issue of the stock market.
Aggressive strategy: 40% lower price from large installed brands
Reliance Consumer Products handles the group’s manufacturing, distribution and marketing business. It sells its products at 20-40% lower than big brands like Coca-Cola, Mondelase and Hindustan Unilever. Also gives more margins to retailers.
Why need a separate listing of companies?
The plan of disorganization at Reliance Industries has been approved by the National Company Law Tribunal on 25 June. NCLT has said that it takes a lot of capital to install a consumer brand. If this business is separated from the retail unit, then this requirement can be fulfilled by listing.
Reliance on the path of Tata, Birla, Raymond, Vedanta and ITC
Reliance is not the only Indian company that is bringing businesses as different companies and exposing their real value. Tata Motors, Aditya Birla Fashion & Retail, Quas Corp, Siemens, Raymond, Vedanta and ITC have done the same.
For example, the value of Siemens Energy India, separated from Siemens last month, was more than Rs 1 lakh crore. After the listing, the total valuation of both companies reached 2.14 lakh crores. It was only 1 lakh crores before separation.
This new trend: Big corporates like Aditya Birla are trying to increase value by restructuring their business
Last month, units of big companies like Quas Corp, Siemens and Aditya Birla Fashion and Retail (ABFRL) have entered the stock market as a separate company.
Remond’s real estate unit Raymond Realty’s listing took place on 1 July. Tata Motors’ car business, which includes Jaguar Land Rover (JLR), can be listed in a separate market by the end of this year. This business will be separated from bus-truck.
Vedanta is planning a separate listing of three units. It is awaiting approval. ITC’s hotel business was listed as an independent company earlier this year.
Bhaskar Expert: Reliance Telecom like in FMCG sector
G Chokkalingmal, MD of Equinomics, says that if there is such a plan, then this step of Reliance will definitely be very positive. We believe that this group will be successful in erecting a large FMCG Empire.
In the FMCG sector too, Reliance Group can now get the same success as it has been found in the telecom and media sector. Clear indications of this are also being received. Reliance’s consumer business growth is fast.
In a very short time, Reliance’s annual income in the FMCG segment came out above Rs 11,000 crore. In view of this, it seems that this group will be able to bring all the consumer brands under one roof.
