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Business News/ Companies / News/  Reliance Consumer acquires makers of Raskik drinks and Toffeeman candies
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Reliance Consumer acquires makers of Raskik drinks and Toffeeman candies

Reliance Consumer Products has acquired two new fast-moving consumer goods brands, Raskik and Toffeeman, as part of its push to build a strong consumer goods business in India. The acquisitions will add to RCPL's existing product range, which includes staples, biscuits, beverages, confectionery and chocolates. Reliance Retail, the parent company of RCPL, added over 3,300 new stores in FY23, taking its retail footprint to over 18,000 stores. The company recorded gross revenue of INR260,364 crore ($35bn) for FY23, a growth of 30% YoY, and footfalls of over 780 million, up 50% YoY.

Reliance Consumer acquires makers of Raskik drinks and Toffeeman candiesPremium
Reliance Consumer acquires makers of Raskik drinks and Toffeeman candies

New Delhi: Reliance Consumer Products Ltd (RCPL), the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures Ltd (RRVL), has made two new acquisitions in the fast moving consumer goods business adding beverage brand Raskik and candy brand Toffeeman to its portfolio, a move that underlines the company’s intent to build a strong consumer goods business in the country.

“Consumer brands business is on a strong growth path with all categories performing well. During the quarter, the business grew its product range with addition of Maliban (biscuits), Raskik (beverages), Toffeeman (candy) to its portfolio," RIL said announcing its full year and fourth quarter earnings on Friday.

Toffeeman brand of candy and confectionery is owned by Maharashtra-based Sweet Confectionery Pvt. Ltd; the company set up its first plant in 1983, producing confectionery goods for Parry Confectionery, now known as Lotte India Corp. Ltd. The move will pit it against ITC Ltd, that sells candies under Candyman brand.

Raskik, started in 2019 by Vikas Chawla, former managing director, south east Europe, Coca-Cola, sells a range of beverages and juices.

Reliance Retail declined to share the cost of the two acquisitions.

The acquisitions further bolster RCPL’s play in the country’s fast moving consumer goods market. RPCL has already launched products under the staples, biscuits, beverages, confectionaries and chocolates categories. In home & personal care (HPC), it has products such as soap, laundry, dish wash, toilet cleaner and floor cleaners. Apart from launching its own organic brands such as Dozo dish wash, and staples under Independence, RCPL has also made a clutch of acquisitions including that of carbonated drinks brand Campa, apart from a stake in Sosyo beverages, and an investment in Lotus Chocolates for confectionary.

Meanwhile, announcing its full year results, India’s largest retailer Reliance Retail said it added over 3,300 new stores in FY23—taking its overall retail footprint in the country to over 18,000 stores, the company said announcing its full year and fourth quarter earnings. “The year reflects an unprecedented growth of retail footprint as business has added 25 million sq ft store area representing more than 50% growth of retail space year-on-year," RIL said in an earnings release. With focus on store network expansion, the business grew its store footprint across consumption baskets.

For the full year, Reliance Retail recorded gross revenue of 260,364 crore for FY23, a growth of 30% year-on-year driven by broad based growth across consumption baskets. For the year, the retail vertical reported a net profit of 9,181 up 30% year-on-year.

During the year—the retailer that now has presence across electronics, grocery, fashion apparel, luxury and jewellery retailer recorded footfalls of over 780 million, up 50% year-on-year as a largely covid-free year helped draw footfalls back in stores.

“Reliance Retail continues on the path of registering industry leading growth year after year at a scale unmatched in India. At Reliance Retail we remain committed to delivering exceptional value to our customers while driving sustainable growth for our business and various stakeholders in the ecosystem," said Isha M Ambani, executive director, Reliance Retail Ventures.

Meanwhile, for the three months ended 31 March 2023, Reliance Retail opened 966 new stores. The quarter recorded its highest ever footfalls at 219 million across formats. Meanwhile, Reliance Retail’s e-commerce offering, JioMart delivered its best quarter. The platform augmented its catalogue by 34% quarter-on-qiarter during the March quarter adding assortments across categories to widen its offering. Trends, Hamleys and Urban Ladder are now live on platform and JioMart is seeing a sustained uptick in non-grocery category contribution, it said.

During the year the company also forayed into newer consumer markets—including its entry in to the fast moving consumer goods market apart from beauty retail. The FMCG business launched several products during the year including ‘Independence’ brand and the iconic beverage brand, ‘Campa’. The beauty business launched digital commerce platform ‘Tira’ and opened its flagship store in Mumbai.

These businesses would be ramped up progressively in the coming period, the company said.

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ABOUT THE AUTHOR
Suneera Tandon
Suneera Tandon is a New Delhi based reporter covering consumer goods for Mint. Suneera reports on fast moving consumer goods makers, retailers as well as other consumer-facing businesses such as restaurants and malls. She is deeply interested in what consumers across urban and rural India buy, wear and eat. Suneera holds a masters degree in English Literature from the University of Delhi.
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Published: 21 Apr 2023, 11:49 PM IST
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