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Mukesh Ambani, Isha Ambani plan BIG move, in talks to acquire stake in Rs 668 crore company to take on Tata, it is...

The development comes weeks after Reliance Retail transferred its FMCG business into New RCPL, a newly created direct subsidiary of Reliance Industries.

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Mukesh Ambani, Isha Ambani plan BIG move, in talks to acquire stake in Rs 668 crore company to take on Tata, it is...
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Mukesh Ambani, Reliance Industries chairman, continues to expand his business empire despite having a substantial presence in the majority of sectors, including telecom, FMCG and more. Now, Reliance's consumer arm, New RCPL, is in advanced talks to buy a majority stake in Udhaiyams Agro Foods, ET reported. The company is a Rs 668-crore staples, snacks and ready-to-cook breakfast mixes maker.

"The potential deal will be mid-sized and similar to Reliance's other acquisitions, such as Campa soft drinks and Velvette shampoos, (the idea is) to tap into regional markets first and then roll-out nationally," ET quoted people privy to the development as saying.

The development comes weeks after Reliance Retail transferred its FMCG business into New RCPL, a newly created direct subsidiary of Reliance Industries. The new subsidiary aims to step up focus on its packaged consumer business, which includes beverages under Campa, Sure water and Spinner sports drinks, food brands Sil jam, Lotus Chocolate and Alan's Bugles chips, Velvette personal care, and Tira Beauty.

Reliance to compete with Tata Consumer Products, others

The New RCPL aims to compete against Tata Consumer Products, iD Fresh Food and MTR in regional markets with Chennai-based Udhaiyams. Sudhakar and S Dinakar will continue to hold minority stakes in Udhaiyams, the executive cited above said. Its parent company, Shri Lakshmi Agro Foods, incorporated Udhaiyams Agro Foods as an unlisted private entity in July this year, with Sudhakar and Dinakar serving as its founding directors.

Recently, Reliance said in an exchange filing that it has dissolved Reliance Consumer Products (RCPL), which was a subsidiary of Reliance Retail, and set up New RCPL under a composite scheme of arrangement effective December 1.

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