Reliance Consumer Goods Arm Posts ₹11,450 Crore Revenue in FY25
The parent company Reliance Retail reported ₹3.3 trillion in gross revenue, up 7.9% from the previous year, and ₹25,053 crore in EBITDA, up 8.6%.
Ankush Pandey
The FMCG division and fully owned subsidiary of Reliance Retail Ventures Limited (RRVL), Reliance Consumer Products Limited (RCPL), reported ₹11,450 crore in FY25 revenues on Friday, exceeding earnings from some major rivals.
The FMCG business kept growing through general trade, which resulted in a 3.5x increase in sales over the period. To expand its product line, the company purchased the personal care brand Velvette and introduced the sports drink Spinner during the quarter. RIL stated in its March quarter and full-year earnings that the brand is increasing its salience through focused marketing and promotional efforts.
As an IPL 2025 co-sponsor, beverage company Campa teamed up with JioStar to obtain the exclusive pouring rights for all Indian cricket team home games. Both Independence and Campa were expected to surpass ₹1,000 crore in revenue in FY25, according to the company's previous quarterly earnings. In the first nine months of FY25, RCPL claimed to have made ₹8,000 crore.
New kid on the block
Since its 2022 entry into the FMCG industry, RIL has pursued mergers and acquisitions and launched a number of brands. It is currently present in many daily essential categories. The company's brands include HomeGuard toilet and floor cleaners; Enzo laundry detergent powder, liquid, and bars; Glimmer and Puric soaps; Dozo dishwashing bars and liquids; and Independence essentials like flour, rice, and edible oil.
With new packaging and marketing, it has also brought old and almost obsolete brands back to life. Campa, Sil (sauces and condiments), Velvette (personal care brand), and Ravalgaon's confectionery company are a few examples. RCPL partnered with Maliban, a Sri Lankan biscuit brand, and purchased a 50% share in Sosyo Hajoori, a beverage brand, in 2023. A national scale, which is essential for an FMCG company to succeed, has not yet been attained.
Recently, Mint stated that it would take an additional three or four years for RCPL to expand its product distribution across the country. It is anticipated that the company will introduce additional products in the upcoming 12 to 18 months. RCPL's distribution network spans 30–35% of Indian markets and consists of 120,000–700,000 outlets, depending on the product type. One million outlets were reached by the company at the end of the fiscal year. According to a March Mint report that cited sources, it plans to open 5–6 million outlets in three years.
Godrej Consumer Products (GCPL), Marico Ltd., Dabur, Nestle, and Hindustan Unilever are just a few of the major domestic and international FMCG companies that are already present in India. GCPL reported ₹6,725.27 crore in revenue for the nine months ending December 31, 2024. It has not yet released full-year figures.
Reliance Retail results
In total, RRVL's March quarter revenues increased by 15.7% to ₹88,620 crore. Operating EBITDA was ₹6,510 crore, and the margin was 8.3%, up 14.6% from the previous year. For the March quarter, RRVL reported a profit of ₹3,545 crore, which was 29% higher than the previous year.
RRVL reported gross revenue of ₹330,870 crore for the entire year, which was 7.9% more than the previous year. With an EBITDA of ₹25,053 crore for FY25, the company continued to grow its profits at an impressive rate, up 8.6% year over year. With businesses in e-commerce, lifestyle retail, apparel, groceries, consumer electronics, and consumer goods, the company's FY25 profit increased by 11.3% to ₹12,388.
RRVL added 2,659 stores over the course of the year, bringing its total to 19,340. But as a result of store simplification, the overall operational space decreased from 79.1 million square feet to 77.4 million square feet. In FY25, the number of registered customers grew to 349 million, a 14.8% increase from the previous year. In the quarter, 1,085 new stores were opened by the company.
"Reliance Retail delivered strong growth in revenue and profits, powered by improved efficiencies, innovative formats, a sharper product mix, and continued investments in technology and customer experience," stated Isha M. Ambani, executive director of Reliance Retail Ventures Limited. We are still committed to using agility and purpose to shape the retail industry's future.
