- 24 Aug 2022
- ICICIdirect Research
Reliance Retail forays into general trade with own FMCG grocery brands
RELIANCE - 2903 Change: -20.05 (-0.69 %)News: As per media reports, Reliance Retail has entered the Indian fast moving consumer goods (FMCG) space and is taking its private label brands, which are currently sold at its supermarkets and hypermarkets, Reliance Fresh and Reliance Smart, to general trade. As per media reports, it plans to have a presence in general trade in categories of groceries, home care, personal care and has started appointing super stockist for placing its private brands in general trade.
View: The company’s entry into general trade with its bouquet of brands, which were earlier sold only in its stores would provide an opportunity to expand the customer base for its in-store brands. Reliance Retail has more than two dozen private labels for which the manufacturing is currently outsourced. Currently, majority of the FMCG products in India are sold through small mom and pop stores. By entering into the general trade category, the company is planning to tap these customer touch points to enhance revenues from its brands to be placed in the general trade category. The entry into branded FMCG space is expected to provide the company with sustainable revenue growth opportunity.
Impact: Positive.