MUMBAI: Reliance Consumer Products (RCPL), the FMCG arm of Reliance Industries, has acquired a majority stake in the Tamil Nadu-based Udhaiyams Agro Foods for an undisclosed sum. Under the joint venture agreement, RCPL will hold a majority stake, while Udhaiyams’ erstwhile owners-- S Sudhakar and S Dinakar-- will continue to hold a minority stake in the company, Reliance said in a statement Thursday.
The deal brings the Tamil Nadu’s heritage nutrition brand Udhaiyam under RCPL’s fold, adding strength to the FMCG major’s branded staples portfolio. This joint venture will bolster RCPL’s efforts to offer global quality at affordable prices to millions of consumers, the statement claimed.
“Udhaiyam has been serving healthy food choices to consumers for decades. This joint venture further strengthens our presence in the branded staples space and also reaffirms our commitment to offering global-quality products to consumers at affordable price points,” T Krishnakumar, a director at RCPL, said.
“The partnership with RCPL opens up new opportunities for us. The brand has been serving consumers in Tamil Nadu for decades. With RCPL now taking charge of expansion, we are confident that the rich heritage of Tamil Nadu will resonate with consumers across more geographies,” said S Sudhakar, managing director of Udhaiyams.
Udhaiyam has a rich legacy of over three decades and a strong market presence in Tamil Nadu. The brand has established itself in key staple and food product categories, including rice, spices, snacks and idli batter, among others, supported by a wide distribution network.