Reliance to enter ice-cream market, compete with Amul, Mother Dairy
After announcing its plan to revive the iconic soft drink, Campa-Cola, to build its presence in India’s soft drinks market, Reliance Industries backed Reliance Consumer Products is all set to compete with dairy brands like Amul and Mother Dairy by venturing into the ice cream and dairy market.
The Mukesh-Ambani-led company is planning to launch ice cream products under its brand, Independence, starting from Gujarat, and may also enter into a contract with a manufacturer in the state, reported Business Standard citing anonymous sources.
As per the report, Reliance is planning to directly compete with dairy brands like Amul and Mother Dairy. As part of its mega-expansion plan, the company is also planning to make some key acquisitions in the value-added space in the market, said the report.
Reliance’s recent appointments serve extra-benefit for its dairy expansion plan
Recent appointments of top leaders in Reliance can help the company in executing its expansion plan in the dairy market.
The recent appointment of the former managing director of Amul, Rupinder Singh Sodhi in Reliance Retail Ventures Limited, can help the company in building its edge in the dairy market. RS Sodhi has worked in the Gujarat Cooperative Milk Marketing Federation for 41 years to build Amul as a nationally acclaimed milk brand. RS Sodhi resigned from GCMMF in January this year and is reported to contribute to the operation of Reliance’s grocery business. However, the group can use his expertise and knowledge to build its dairy product as well.
Other than RS Sodhi, Reliance has also hired Sandipan Ghosh as the business head of the dairy and frozen foods wing of Reliance Retail. He has a work experience with Milk Mantra and Lactalis India.
Notably, this will be the second attempt of the group to enter the dairy market. Earlier, the Reliance group had exited the dairy market in 2016 after selling its business to Heritage Foods.
The dairy market in India is booming constantly and is expected to grow further in the coming years. Reliance Industries is aiming to tap the growing opportunity in the market.
Recently, Reliance relaunched its brand, Campa, and also entered the personal and home care segment of FMCG. The group plans to offer products at 30 to 35 percent lesser prices.