Reliance Retail Q3 Results: Net profit up 10% to ₹3,485 crore, revenue up 7% YoY led by festive season | Stock Market News

New Delhi: Reliance Industries Ltd. expects its Campa and Independence brands to cross the ₹1,000-crore milestone each this financial year after it shook up the consumer goods market with products across staples to beverages.

“Consumer brands (under Reliance Consumer Products Ltd or RCPL) continued to deliver growth across categories with 9M FY25 revenue at ₹8,000 crore,” the company said in its December quarter earnings announced Thursday.

“Campa and Independence brands continued to gain traction across markets; Campa has over 10% market share in the sparkling beverage category in select states,” the company. “Both brands are projected to cross ₹1,000 crore turnover each in FY25.”

While official numbers are not available, RCPL closed FY24 with revenues of around ₹3,000 crore, according to people familiar with the company’s plans.

Stirring a price war

The company, a fast-moving consumer goods subsidiary of Reliance Retail Ventures Ltd, has stirred a pricing war after its recent entry, adversely impacted incumbents. That’s especially true in the aerated beverages market, where it relaunched decades-old Campa Cola after acquiring it in 2022.

“Listed beverage-FMCGs such as Dabur, Tata Consumer (TCPL) and Varun Beverages (VBL) are feeling the heat from Reliance’s Campa Cola. Campa has uncorked risk in terms of both consumer pricing and higher trade promotions,” analysts at Nuvama Institutional Equities said in a note released earlier this week.

“The Indian consumer is value-focussed, and Campa’s cut-throat ₹10 pricing, higher trade commissions and PET-only bottle strategy are adversely affecting rivals,” Nuvama said. “On top of it, the Campa brand is aggressively advertising at the Kumbh Mela (400mn potential footfalls) and is now available on quick-commerce platforms.”

RPCL has already launched products under the staples, biscuits, beverages, confectionery and chocolates categories. In home & personal care, it has products such as soap, laundry, dish wash, toilet cleaner and floor cleaners.

RCPL has also invested in a clutch of brands such as Sosyo beverages, apart from Lotus Chocolates for confectionery. Earlier this year, it announced plans to acquire candy maker Ravalgaon’s confectionery business. It also partnered General Mills to enter the snacking business.

RCPL launched its in-house packaged consumer products brand ‘Independence’ in December 2022 in Gujarat, before rolling it out to consumers in other markets. ‘Independence’ sells edible oils, grains, pulses, and packaged foods.

Deepening presence

RCPL continued to deepen its presence in general trade, the company said, delivering year-on-year growth as it expanded its reach through a network of distributors and merchant outlets across the country. The business strengthened its product portfolio with acquisition of Tagz Foods and launch of an energy drink ‘RasKik’ Gluco Energy.

Meanwhile, in the quarter ended December, Reliance Retail Ventures reported an 8.8% year-on-year jump in revenues ₹ ₹90,333 crore. Profit for the period stood at ₹3,458 crore, up 9.9% year-on-year.

RRVL operates across retail categories such as electronics (Reliance Digital), fashion and lifestyle (Yousta and Azorte), online commerce (JioMart, Ajio) and grocery (Reliance Fresh). The company opened 779 new stores during the quarter taking the total store count to 19,102.

 “Reliance Retail delivered strong performance during the quarter led by festive buying across consumption baskets. Our focus on offering a wide range of products at an attractive price value proposition continues to draw customers to our stores and digital platforms,” Isha M. Ambani, executive director, Reliance Retail Ventures, said. “We are creating through JioMart – express deliveries, scheduled deliveries coupled with Milkbasket – subscription services, a seamless shopping experience that serves diverse customers across all categories and catchment.”

On Thursday, the company also announced that its premium brands business struck an India franchise arrangement with luxury department store chain Saks Fifth Avenue. The business also inked a joint venture with Mothercare PLC to acquire the Mothercare brand and its IP assets for Indian subcontinent.