Reliance Consumer revives Velvette, targets HUL and Dabur in personal care

NEW DELHI: After shaking up India’s fizzy drink market, Reliance Consumer Products Ltd (RCPL) is now entering the personal care space, taking on established players such as Hindustan Unilever Ltd (HUL) and Dabur Ltd.

On Thursday, the company re-launched Velvette, a once-popular Tamil Nadu-based brand, signing actress Krithi Shetty as its ambassador.

The company held a large dealer meet in Chennai the same day to mark the rollout. Those familiar with the plans said RCPL may use Velvette as an umbrella brand for its personal care segment, capitalizing on its legacy in the southern market.

“In line with RCPL’s vision of promoting heritage brands of India, the widely popular Velvette is now a flagship brand in the company’s personal care portfolio,” the company said in a statement.

The Velvette relaunch aligns with RCPL’s broader ambition to scale its FMCG business and achieve ₹1 trillion in revenue within five years.

Velvette will initially roll out in 1,400–1,500 stores in Tamil Nadu, with plans to expand across southern markets where the brand has stronger recall. RCPL may also extend Velvette into other categories, such as male grooming.

A legacy brand returns

Velvette was founded in the 1980s by C.K. Rajkumar, India’s original “sachet king,” and became a household name thanks to affordable shampoo sachets. The brand later faded amid competition from larger players.

RCPL’s revival aims to combine nostalgia with modern distribution and marketing, positioning Velvette as a flagship in its personal care portfolio. The product line now includes soaps, shampoos, conditioners, shower gels, body lotions, and talcum powders.

Pricing and market

Velvette is priced for mass-market consumers. Its 8 ml shampoo sachet costs ₹2, while 185 ml and 340 ml bottles are priced at ₹150 and ₹290, respectively.

HUL’s Sunsilk occupies a similar price range, though it also offers ₹1 sachets. Dabur’s Vatika shampoos are priced lower than Velvette, while soaps (40 g at ₹10; 100 g at ₹35) are comparable to Godrej’s Cinthol.

India’s beauty and personal care market was valued at $28 billion in 2024, with projected annual growth of 11.5% until 2030, according to Deloitte India. Analysts note that personal care is a more challenging category than beverages or food, given high brand loyalty and intense competition.

Velvette will compete with established players such as HUL, ITC, Godrej Consumer Products, and RHS Global, and emerging players such as Mamaearth and Plum.

“Personal care is a tougher category for new entrants; having said that, given this is Reliance, we will monitor this. Even ITC has seen good success in food, but its success in personal care has been measured (excluding deos). Personal care has much more customer loyalty—unlike foods,” said Abneesh Roy, executive director, Nuvama Institutional Equities.

“However, Velvette is a legacy brand, and in some southern markets, it does have brand recall. Reliance can scale this up via distribution and marketing. But taking it pan-India, unlike Campa, will be tougher,” he said.

Others said smaller brands may feel the pinch with the brand's initial roll-out.

“They will eat the local players first; while they can build brands in each category, it's unlikely they will become market leaders in any category,” said another trade marketing head, speaking on the condition of anonymity.

RCPL reported overall FMCG revenues of ₹11,450 crore for FY25, though its personal care distribution remains limited. By contrast, HUL’s personal care segment—which includes soaps, shampoos, deodorants, and body wash—reported revenues of ₹9,168 crore last fiscal.