Reliance Consumer To Acquire SIL To Strengthen Its Position In FMCG Market

Reliance Consumer Products is set to acquire the packaged foods brand SIL Food India, which offers products like cooking pastes, jams, mayonnaise, baked beans and Chinese sauces. The acquisition process has been completed, according to a media report.

SIL Food India, based in Pune, mainly operates in the Western and Southern markets. Reliance Consumer Products Ltd (RCPL) plans to expand its distribution across India to compete with major FMCG companies like HUL, Tata Consumer and Cremica.

The acquisition involves Reliance Consumer Products buying SIL brands from its current owner, Food Service India. SIL has manufacturing facilities in Pune and Bengaluru.

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SIL Food India, originally called James Smith & Co, was first bought by Marico Industries in 1993. Marico later sold the business to Scandic Food India, a subsidiary of Denmark’s Good Food Group. In 2021, Food Service India, which supplies seasonings, spices, and condiments to the hospitality industry, acquired SIL Foods.

Strategy Behind This Acquisition

 RCPL plans to use this acquisition to grow its distribution network across India and compete directly with major companies like Hindustan Unilever (HUL), Tata Consumer Products and Cremica. SIL currently mainly operates in the Western and Southern markets.

RCPL will focus on keeping prices competitive, offers better profit margins to retailers and revitalizing traditional brands. However, the acquisition only includes SIL’s brands and does not cover the company or its manufacturing facilities.

This acquisition is part of RCPL’s larger strategy, which has involved buying brands like Ravalgaon and Toffyman Confectionery, Campa Soft Drinks, Raskik Beverages, Sosyo Carbonated Drinks and Lotus Chocolate in recent years.

Expansion Plan For Future

RCPL has been growing its presence in the FMCG market. In the first nine months of FY25, RCPL reported a revenue of Rs 8,000 crore. The company expects its main brands, Campa and Independence, to generate Rs 1,000 crore in revenue by the end of FY25.

In the October-December quarter, RCPL saw a 300% year-on-year growth in its distributor and merchant outlet network. Meanwhile, Food Service India reported Rs 240 crore in revenue during FY24.

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