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News: As per media reports, Reliance Consumer Products (subsidiary of Reliance Retail) is planning to enter the dairy and frozen foods market. It is likely to focus on value-added products like curd, frozen desserts, ice creams and flavoured yogurt
Views: The entry into the dairy segment is in line with Reliance Retail's ambition of capturing a major pie of the Indian FMCG market. The company is likely to launch ice creams under the brand ‘independence’ in Gujarat initially by using asset light contract manufacturing. As per industry estimates, the Indian dairy market is expected to increase from Rs 15 trillion in 2022 to 31 trillion in 2028. Reliance Retail is eyeing to capture market share in various FMCG segments from incumbent players and entry into value added dairy products would aid in boosting revenues from the recently launched FMCG business
Impact: Neutral