Can Reliance topple HUL & Nestle? Mukesh Ambani targets ₹1 lakh crore revenue in FMCG within five years

Mukesh Ambani-led Reliance Industries has in the last two years rapidly scaled up its fast-moving consumer business, acquiring smaller brands like Campa and Lotus Chocolate on the one hand, while launching and growing its own brands like 'Independence' in staples. The oil-to-telecom conglomerate has now set ambitious goals for Reliance Consumer Products, targeting ₹1 lakh crore revenue in five years.

Until now, Reliance Consumer Products was a wholly-owned subsidiary of Reliance Retail Ventures. But now, it will become a direct subsidiary of Reliance Industries, a move that will consolidate all the consumer brands into a single, sharply focused company.

“RCPL, as a subsidiary of RIL, is a strategic move to create India’s largest FMCG company. RCPL’s phenomenal growth is guaranteed by the consumption boom in India, our world-class supply chain and advanced manufacturing capabilities,” said Mukesh Ambani, the chairman and MD of Reliance.

Separately elaborating on the consumer business plans further, Isha Ambani, the director of Reliance Retail, pointed out that India’s consumer market is a $2 trillion high-growth opportunity, expanding at over 8 per cent annually and a strategic approach is needed to seize this opportunity.

She stated that India’s 350 million middle-class households had a combined purchasing power exceeding ₹100 lakh crore, and they represented 600 million increasingly brand-conscious consumers who sought premium experiences at affordable prices. Also, India’s rural markets, comprising 900 million consumers, were adopting global-quality branded products faster than urban markets, with penetration growing 35 per cent annually, she added.

“This combination of a rising middle class and accelerating rural adoption marks an unmissable consumption opportunity,” said Isha.

As a separate company, RCPL will get the independence to focus exclusively on its markets, products, and customers, and provide the agility to respond quickly to consumer trends and competitive dynamics, she noted.

“This structure will enable sharper execution, faster innovation cycles, and deeper operational focus – all critical to winning in consumer markets,” according to Isha.

RCPL has also seen strong growth with revenues touching ₹11,500 crore in the year ended March 2025. Aided by a strong distribution push and lower pricing, Campa Cola already has double-digit market share in several states. Its daily essentials brand Independence has crossed ₹1,000 crore in revenue.

In contrast, Hindustan Unilever, the largest FMCG company in India, reported a revenue of ₹60,680 crore in the year ended March 2025. Nestle India reported a revenue of over ₹20,000 crore, and homegrown Dabur India’s full-year revenue stood at ₹12,563 crore.

The company has set a target of ₹1 lakh crore in revenue within five years. This will be aided by rapid expansion not just in India, but also overseas.

“We started in India, have entered West Asia, Sri Lanka and Nepal, and are now exporting to West Africa. Our target is to enter at least 25 countries in the next 12 months, building an Indian consumer brands powerhouse with global reach,” Isha stressed.

While Reliance scales up distribution and reach of its FMCG business, it has also established a research and development hub, spread across 1.50 lakh square feet and over 100 scientists, focusing on better-than-market quality, first-to-India products and first-to-world innovations.

RCPL has already invested ₹3,000 crore in 12 manufacturing facilities, and over the next three years, it plans to invest ₹40,000 crore to create Asia’s largest integrated food parks.

At the same time, the company is also scaling up its distribution. It has already reached 1.5 million outlets and aims to cover 95 per cent of India’s consuming population through retail, digital and B2B channels. The company’s signature partner programme, which offers higher retailer margins, is enrolling over 10,000 new partners each month, according to Isha.

This is in additional to Reliance’s own strong retail network. Reliance Retail has 19,340 stores in over 7,000 towns, and it plans to steadily add 2,000-3,000 new stores annually, spread across grocery, fashion, lifestyle, and durables among others.

The FMCG business will be the blueprint for expansion into apparel, electronics and other large and high-value consumer categories.