Mumbai: After its bold bid to dominate the soft drink industry with Campa Cola, RIL’s FMCG arm Reliance Consumer Products Limited (RCPL) has announced its intention to acquire a majority stake in Naturedge Beverages, which owns the health drink brand Shunya. This move is part of a larger bid to dominate the FMCG and consumer durables market, largely through inorganic acquisitions.
Founded in 2018, Naturedge Beverages’ Shunya and Armour brands offer low-sugar beverages developed in-house targeted to health-conscious consumers, as an alternative to sugar-laden beverages. The formulations are developed in collaboration with Naturedge’s parent company, the over 100-year-old Kolkata-based Ayurvedic brand Baidyanath Group.
The Baidyanath Group will retain a stake in Naturedge, while RCPL will continue to focus on expanding the brand’s reach.
“We are pleased to announce this JV as it strengthens our beverage portfolio with the addition of health-focused functional drinks, inspired by Ayurveda. Within a very short span of time, Shunya has gained wide popularity among health-conscious consumers as it offers the benefits of herbs in contemporary formats. It also fits perfectly with RCPL’s vision of global providing quality products at affordable prices along with promoting India’s legacy. We are delighted to come together with our partner Naturedge Beverages and consumers can now expect more innovation and a wider range of herbal-natural functional beverages in the future,” Ketan Mody, Executive Director, Reliance Consumer Products Limited, said.
With this acquisition, Reliance Retail is aiming to dominate the overall beverage industry on the back of its exceptional marketing and distribution reach, along with its other acquired brands- Campa Cola for soft drinks, Raskik for fruit beverages and now Shunya as a health drink brand. Reliance has forced Pepsi, Coke and other regional brands to rethink their brand’s positioning, as Reliance is offering Campa Cola at an attractive price for both retailers and consumers, never mind the lower margins. Will Reliance eventually succeed in dominating the market? That’s a question everyone’s asking.
