Mukesh Ambani's Reliance Industries to spin off FMCG brands into new arm ahead of mega IPO plans!

Mukesh Ambani-led Reliance Industries Ltd (RIL) plans to consolidate its fast-moving consumer goods (FMCG) brands into a new entity. The new entity, to be named New Reliance Consumer Products Ltd (New RCPL), will operate as a direct subsidiary of RIL, similar to Jio Platforms Ltd.

 Restructuring Details & Rationale

• New Entity Creation A National Company Law Tribunal (NCLT) order dated June 25, 2025 approved the formation of New RCPL, which will consolidate FMCG offerings currently housed under Reliance Retail entities like RRVL, RRL, and RCPL

• Focused Management & Capital Allocation Reliance stated that FMCG requires unique expertise, brand-building, manufacturing, distribution and ongoing capital investments—distinct from its conventional retail operations

• Investor Appeal & Valuation Clarity Spinning off FMCG removes a potential valuation “skew”—helping the forthcoming Reliance Retail IPO maintain clarity and appeal to dedicated retail investors .

📊 FMCG Portfolio Highlights

• Size & Scale In FY25, the FMCG arm was valued at approximately ₹11,500 crore (~$1.4 bn)

• Brand Mix Over 15 brands:

  • Beverages: Campa Cola, Sosyo

  • Groceries: Independence brand

  • Snacks/Confectionery: Ravalgaon

  • Jams & Sauces: SIL

  • Personal Care: Velvette

  • Go-to-Market Strategy These products are priced 20–40% below majors like Coca‑Cola, Mondelez, and HUL, with distributors offered higher margins—aimed at gaining quick shelf presence 

🏷️ IPO Strategy & Timeline

• IPO Ready, But Not Immediate Like Jio’s IPO slated for 2025, Reliance Retail is likely to list its retail arm after market conditions and internal structuring are fully optimized 

• IPO Positioning Benefit Crafting a clean retail offering—free from capital-intensive FMCG segments—can help attract broader investment and reduce valuation ambiguity in what’s expected to be one of India’s largest IPOs (~$100 bn+ valuation) .

🏢 Ownership & Strategic Outlook

• Parent Stake Reliance Industries will retain an 83.56% stake in New RCPL, maintaining controlling interest .

• Independent Growth Engine New RCPL will operate similarly to Jio Platforms—as a standalone growth engine—aimed at carving out FMCG's distinct value and scale potential 

✅ Why It Matters

1. Sharper Focus: FMCG gets tailored management and capital, improving execution.

2. Attractive to Specialists: New investors who specialize in consumer goods can participate.

3. IPO Readiness: Retail IPO remains uncluttered by high-capex FMCG, boosting investor clarity.

4. Value Unlocking: Separation could reveal hidden value and drive stakeholder interest.

🧭 Summary

Reliance is executing a smart demerger: FMCG brands under one roof with New RCPL, controlled by RIL, optimized for value creation and strategic growth—while prepping the retail arm for a big public debut. If you're tracking Ambani-led IPO plans, this is a key structural move worth watching.