Coming To A Kirana Near You: Reliance Consumer Expands FMCG Play

After making a splash with the relaunch of iconic beverage brand Campa, Reliance Consumer Products (RCPL) — the fast-moving consumer goods (FMCG) arm and wholly-owned subsidiary of Reliance Retail Ventures — is set to expand its packaged consumer goods portfolio to neighbourhood mom-and-pop stores (kiranas) with the launch of home and personal care products, keeping “Real India’s consumer problems” in mind.

“This portfolio expansion, which comes close on the heels of RCPL’s relaunch of the iconic beverage brand Campa, reaffirms and further supports the company’s aim to provide Indian consumers with high-quality FMCG products at affordable prices,” the company said in its release.

The home and personal care portfolio includes brands such as Glimmer beauty soaps, Get Real natural soaps, Puric hygiene soaps, Dozo dishwash bars and liquids, HomeGuard toilet and floor cleaners, and Enzo laundry detergent range.

These category launches by RCPL bring the Mukesh Ambani-promoted Reliance Industries’ retail business in direct competition with Hindustan Unilever (HUL), which has industry-leading brands across bathing soaps, toilet and floor cleaners, and detergent segments, as well as Godrej Consumer Products, Reckitt Benckiser India, and ITC that have popular brands in the bathing soap space.

The home and laundry care market in India is at $8.57 billion in 2023, according to the online platform Statista, which specialises in market and consumer data.

International Market Analysis Research and Consulting has pegged India’s bath soap market at $2.88 billion in 2022.

Growing footprint

• Rs 70,764 crore: Size of India’s home & laundry care market
• Rs 23,780 crore: Bath soap market
• Rs 16,578 crore: HUL’s FY22 revenue from home care products
• Rs 19,460 crore: HUL’s revenue from beauty and personal care segment
• Rs 1.99 trn: Reliance Retail Ventures’ (RRVL’s) consolidated turnover in FY22
• RCPL is FMCG arm and wholly-owned subsidiary of RRVL, the holding company for all retail businesses of RIL
• RCPL’s FMCG brands include Glimmer, Get Real and Puric soaps; Dozo dishwash bar; Enzo liquid detergent, among others

Sources: RCPL; industry

One of the country’s largest FMCG major, HUL’s home care revenue was at Rs 16,578 crore in 2021-22; its beauty and personal care revenue at Rs 19,460 crore. The beauty and personal care category of HUL not only includes soaps but other categories like shampoo, toothpaste, moisturizer, etc.

“The products will be now available across channels to enable all retailers, including kirana stores, to offer a wide assortment of daily-need products to Indian consumers,” the release said.

According to the company, all of its bathing soaps are priced at Rs 25 for 100 gram (gm), while its dishwash bars are priced at Rs 5, Rs 10, and Rs 15.

The liquid wash is available at Rs 1 for a sachet, while its pouch packs are priced at Rs 10, Rs 20, and Rs 30. RCPL’s bottled dishwasher Dozo liquid is priced at Rs 45.

According to JioMart’s listings, the price of RCPL’s Enzo 2-litre front-load liquid detergent at Rs 250 is at a 43 per cent discount to the maximum retail price (MRP) of Rs 440; the top-load 2-litre liquid detergent is available at a 35 per cent discount and now priced at Rs 250. Its compact detergent powder 1-kilogram pack is priced at Rs 149, after offering a 12 per cent discount on its MRP of Rs 170.

According to a source in the know, RCPL will offer more stock-keeping unit choices in the general trade.

The company’s soaps will include various variants. For example, Glimmer has rose, jasmine, lavender, and floral burst variants. Get Real has sandalwood, neem, and mixed herbs. Puric has active power and turmeric aloe.

RCPL also said it would launch a range of toilet and floor cleaners under the HomeGuard brand, along with laundry detergent (bar, liquid, and powder) under the brand, Enzo Smartwash.

“RCPL is entering highly penetrated segments like soaps and detergents, which will further crowd the organised industry,” said Sachin Bobade, vice-president at brokerage firm Dolat Capital.

“The company will have to establish its brands in the general trade. If it is aiming for 10-15 per cent of return on equity, its entry into these categories is a good strategy,” said Vishal Gutka, vice-president-research (consumer and retail), PhillipCapital India.

Speaking at the launch, a spokesperson for RCPL said, “Our ambition is to help every Indian household get access to quality products at reasonable price points. This range of home and personal care products boasts high efficacy with superior formulation. These have been developed keeping Real India’s consumer problems at their core.”

RCPL plans to aggressively scale up these launches through omnichannel distribution across India in the months ahead to further strengthen its versatile FMCG portfolio that comprises heritage brands from Sosyo Hajoori, confectionery range from Lotus Chocolate, Sri Lanka’s leading biscuit brand Maliban, as well as daily essentials under its brands, including Independence and Good Life, among others, the company said in its release.