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Reliance's Big Bet: Acquires Majority Stake in Tamil Nadu's Heritage Brand Udhaiyam

Reliance Consumer Products has taken a major step by acquiring a majority stake in the well-known Tamil Nadu brand Udhaiyam. This move is part of Reliance's strategy to grow its food business and promote India's heritage brands. The company believes this partnership will help offer high-quality staple foods at affordable prices across the country. The original founders will stay on to help guide Udhaiyam's national expansion.

Key Points: Reliance Consumer Acquires Majority Stake in Udhaiyam Foods

  • RCPL acquires a majority stake in Udhaiyams Agro Foods to strengthen its branded staples business
  • The partnership aims to make Udhaiyam a national brand with affordable, high-quality products
  • Udhaiyam is a popular 30-year-old Tamil Nadu brand known for rice, spices, and snacks
  • Original promoters will retain a minority stake and continue to support the company's growth
2 min read

Reliance Consumer Products acquires majority stake in Tamil Nadu's heritage brand 'Udhaiyam'

Reliance Consumer Products acquires a majority stake in Tamil Nadu's heritage brand Udhaiyam to expand its national branded staples portfolio with affordable, quality products.

"We are confident that the goodness of Tamil Nadu and the rich heritage of the land will resonate with consumers across geographies. - S. Sudhakar, MD of Udhaiyams Agro Foods"

New Delhi, December 18

Reliance Consumer Products Limited (RCPL) took a major step to grow its food business by acquiring a majority stake in Udhaiyams Agro Foods Private Limited. This deal brings the popular Tamil Nadu brand called Udhaiyam under the Reliance family. The move allows Reliance to add strength to its collection of branded staple foods, as per a RCPL press release.

According to the joint venture agreement, Reliance now owns the larger part of the company. The previous owners of Udhaiyams will keep a smaller share. This partnership matches Reliance's "core philosophy of promoting India's heritage and legacy brands". It will help them offer high-quality products at prices that are easy for people to afford and make them popular all over the country.

T. Krishnakumar, Director of Reliance Consumer Products Limited, said, "We are very excited to announce this joint venture, as it further strengthens RCPL's presence in the branded staples space. This initiative also reaffirms our commitment to offering global-quality products to consumers at affordable price points, while promoting India's legacy."

He also mentioned that he was sure Udhaiyam would soon grow into a national brand and satisfy consumers across India, just as it earned the trust of millions in Tamil Nadu.

S. Sudhakar, Managing Director of Udhaiyams Agro Foods Private Limited, stated that this partnership with RCPL opened up new opportunities for Udhaiyam. "With RCPL now taking charge of its expansion, we are confident that the goodness of Tamil Nadu and the rich heritage of the land will resonate with consumers across geographies, while adding value to their lives as we increasingly transition towards a healthier lifestyle," he said.

The previous promoters, S. Sudhakar and S. Dinakar, will stay with the company. They hold a minority stake following the acquisition. With more than 30 years of experience in the staples category and in scaling the packaged pulses business at Udhaiyams, they will continue with the company and support the next phase of growth.

Udhaiyams Agro Foods Private Limited is well-known for its flagship brand Udhaiyam. It has been around for over three decades. The brand is very famous in Tamil Nadu. The brand has established itself in key staple and food product categories, including rice, spices, snacks and idli batter, among others, supported by a wide distribution network.

- ANI

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Reader Comments

P
Priya S
Mixed feelings. On one hand, a Tamil brand going national is fantastic. On the other, I worry about big corporations swallowing up local heritage. Will the essence of 'Udhaiyam' remain, or will it become just another product on a Reliance shelf?
R
Rohit P
Smart move by Reliance. They are building an empire in FMCG. If they can offer Udhaiyam products at competitive prices in North India, it will be a game-changer. Looking forward to trying their snacks here in Delhi!
A
Anjali F
The key is affordability. If Reliance truly keeps prices low while ensuring quality, it will help many families. Their distribution network is unmatched. Hope the original promoters staying on means the brand's soul is preserved.
K
Karthik V
As someone from Coimbatore, I've grown up with Udhaiyam. It's a trusted name. While expansion is good, I sincerely hope the focus on "Tamil Nadu's goodness" isn't just marketing talk. The taste and quality must not be compromised for scale.
M
Michael C
Interesting to see Reliance's strategy of acquiring regional champions. It's a faster route to market dominance than building brands from scratch. The Indian consumer packaged goods space is heating up!

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