RIL’s decision to spin off consumer business into new unit gets NCLT nod

The swap ratio for the demerger of the consumer brands is the issue of 1 share of the new RCPL for every 2 shares of RRVL
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Reliance Industries is spinning off its fast moving consumer goods business, including consumer brands into a new entity also called Reliance Consumer Products, which will operate under a direct subsidiary of Reliance Industries.

An order to this effect was passed by the National Company Law Tribunal on June 25, subsequent to the filing of the scheme by RIL. The scheme was approved by the company’s board in April.

Currently the consumer goods and consumer brands business comes under Reliance Retail Ventures, while Reliance Retail, another subsidiary of RRVL is also engaged in the FMCG business.

With the current restructuring all the consumer businesses will be under one entity.

The rationale for the scheme was given as part of the internal restructuring of companies in the RIL group is to house the consumer brands business in the new RCPL and will have RIL and Reliance Retail Ventures holding the same percentage shareholding as RRVL. The spin off will also allow it to attract more investors.

“The Consumer Brands Business is one of building brands, managing entire product lifecycle from research, development, manufacturing, distribution and marketing. This is a large business by itself requiring specialised and focused attention, expertise and different skill sets as compared to retail business. This business also entails large capital investments on an on-going basis and can attract different set of investors. The Consumer Brands business is not part of retail business, and it is proposed that this business is housed in a direct subsidiary of RIL,” said the NCLT order.

The swap ratio for the demerger of the consumer brands is the issue of 1 share of the new RCPL for every 2 shares of RRVL.

Subsequent to the restructuring RIL will hold 83.56 per cent stake in the entity.

The consumer business sells a whole range of FMCG products including groceries, snacks, confectionaries and the Campa range of beverages.

Published on July 3, 2025