New Delhi: After tasting some success with the Campa Cola brand revival, Mukesh Ambani-led Reliance Retail is trying to replicate the same playbook in the consumer durables sector. On Friday, July 18, the company announced the acquisition of the Kelvinator brand with an aim to get a foothold in the consumer durables sector.
“This acquisition strategically aligns with Reliance Retail’s vision of democratising aspirational living. By integrating Kelvinator’s rich legacy of innovation with Reliance Retail’s expansive and unparalleled retail network, the company is set to unlock substantial consumer value and accelerate growth in the rapidly expanding premium home appliances market across India,” Reliance Retail said in a statement.
“Our mission has always been to serve the diverse needs of every Indian by making technology accessible, meaningful, and future-ready, The acquisition of Kelvinator marks a pivotal moment, enabling us to significantly broaden our offering of trusted global innovations to Indian consumers. This is powerfully supported by our unmatched scale, comprehensive service capabilities, and market-leading distribution network.” Isha Ambani, Executive Director, Reliance Retail Ventures Ltd (RRVL) added.
About Kelvinator
Largely dominant in the 1970s and 80s, the Kelvinator brand was well known for its reliable refrigerators and its iconic ‘The Coolest One’ tagline. The brand was well known for its durability and reliability, and had slowly faded into oblivion after the 1990 economic liberalization.
Reliance Retail’s acquisition history
Reliance Retail has grown to become India’s leading retail giant on the back of consistent financial support from parent RIL and its inorganic growth through acquisitions and partnerships. To date, the company has completed 22 acquisitions, the most notable being German wholesaler Metro Cash and Carry’s India operations, legacy soft drink brand Campa Cola and debt-ridden retail giant Future Retail.
Most of these acquisitions were aimed to dominate the retail landscape in India, even though some of them haven’t complemented Mukesh-Ambani’s retail empire.
As for the Kelvinator acquisition, Reliance will have a tough task aligning its products to consumer expectations, in a market where margins are declining and customer expectations are increasing. Even though it has an unmatched reach with its Reliance Digital stores, how Reliance will manage to market the brand to millennial customers remains to be seen.
