Reliance in talks for a bite of Udhaiyams, set to take on Tata, iD Fresh, MTR

Reliance Consumer Products is reportedly in advanced negotiations to acquire a majority stake in Udhaiyams Agro Foods, a company with a revenue of ₹668 crore that produces staples, snacks, and ready-to-cook breakfast mixes. Sources familiar with the matter suggest the deal will be of medium size.

This acquisition is aligned with Reliance's strategy of initially targeting regional markets before expanding nationwide, a method similar to their previous acquisitions. Udhaiyams, based in Chennai, competes with established brands such as Tata Consumer Products, iD Fresh Food, and MTR.

Udhaiyams Agro Foods was incorporated as an unlisted private entity in July of this year by its parent company, Shri Lakshmi Agro Foods. S Sudhakar and S Dinakar, the promoters, will retain minority stakes in the company. They also serve as the founding directors.

The potential acquisition follows Reliance Retail's recent transfer of its FMCG business into New RCPL, a direct subsidiary of Reliance Industries. This move is intended to sharpen the focus on its packaged consumer business, which includes brands like Campa, Sure water, Spinner sports drinks, Sil jam, Lotus Chocolate, Alan's Bugles chips, Velvette personal care, and Tira Beauty.

Reliance Consumer recently dissolved Reliance Consumer Products (RCPL), formerly a subsidiary of Reliance Retail, and established New RCPL under a composite scheme effective December 1, according to an exchange filing.

In related news, Reliance Consumer has announced a ₹40,000 crore agreement with the government to establish food manufacturing facilities across India. The company reported revenue exceeding ₹11,000 crore in FY25.

Larger, more established players in the consumer sector are facing increasing competition from smaller, more agile local and digital-first brands that compete on price, direct distribution, and quick commerce.

**Small Players Attracting Attention**

Larger rivals and investors are increasingly interested in acquiring these smaller companies. For example, Honasa Consumer, the owner of Mamaearth, recently acquired BTM Ventures, the parent company of men's personal care brand Reginald Men. Godrej Consumer Products acquired male grooming brand Muuchstac last month. Dabur recently announced the launch of Dabur Ventures, a ₹500 crore investment platform to acquire digital-first or regional consumer brands.

Private equity firms such as Apax Partners, Kedaara Capital, and Verlinvest are reportedly in discussions with iD Fresh Food regarding a potential acquisition of a significant minority stake.

According to an Equirus Capital report, the Indian consumer sector saw 115 M&A deals between January and September 2025, the highest number in four years. Food and beverages accounted for the highest percentage of these deals, followed by apparel and accessories. The consumer segment saw deals worth over ₹21,200 crore in the first nine months of the year, with 74% of deals in the F&B segment.

Imarc Group estimates that India’s packaged food market will reach $224.8 billion in sales by 2033, growing at a CAGR of 6.5% between 2025 and 2033, up from $121.3 billion in 2024. This growth is attributed to rapid urbanization, the increasing demand for convenience foods, and the expansion of online food delivery services.