Reliance Consumer Products acquires majority stake in Tamil Nadu’s Udhaiyams

Reliance Consumer Products Limited (RCPL), the FMCG arm of Reliance Industries led by Mukesh Ambani, has announced the acquisition of a majority stake in Udhaiyams Agro Foods Private Limited, a company based in Tamil Nadu.

Earlier reports indicated that Reliance Consumer was in advanced talks to acquire a controlling interest in the Chennai-based Udhaiyams.

Udhaiyams Agro Foods, established over three decades ago, is estimated to be a Rs 668-crore business. The company has a strong foothold in the staples, snacks, and ready-to-cook breakfast mixes market, with a portfolio that includes rice, pulses, spices, snacks, and idli batter. Udhaiyams boasts an extensive distribution network throughout Tamil Nadu and neighboring states.

Under the terms of the joint venture, RCPL will hold a controlling stake in Udhaiyams, while the existing promoters of Udhaiyams will retain a minority stake. The specific financial details of the transaction were not disclosed.

T Krishnakumar, Director of Reliance Consumer Products Limited, stated that Udhaiyam is a well-known brand that has been providing consumers with healthy food options for decades. He added that the brand reflects Tamil Nadu’s heritage, scientific approach, and superior quality.

S Sudhakar, Managing Director of Udhaiyams Agro Foods, commented that the partnership with RCPL marks a significant new chapter for the company, opening up new opportunities for Udhaiyam, which has been delighting consumers in Tamil Nadu for decades. He emphasized that Udhaiyam is synonymous with the best quality branded pulses in Tamil Nadu households.

The acquisition aligns with Reliance's strategy of acquiring strong regional consumer brands and scaling them nationally, similar to previous acquisitions in the beverages and personal care sectors. Udhaiyams competes with companies such as Tata Consumer Products, iD Fresh Food, and MTR in the regional food market.

The deal with Udhaiyams occurs during a period of heightened consolidation in India's consumer sector, where large legacy companies face increasing competition from regional and digital-first brands that utilize sharp pricing, direct distribution, and quick commerce. This environment has led to larger rivals and investors actively courting smaller players.