Reliance Retail Ventures to invest Rs 300 crore in FMCG business
Reliance Retail Ventures is pumping Rs 300 crore equity into its newly floated fast-moving consumer goods business entity, Reliance Consumer Products (RCPL), through the optionally fully convertible debentures (OFCD) route, with Rs 277 crore already infused into the business, as per the last fiscal financial statement of RCPL. This is the first major capital infusion by the promoters into the business.
Reliance Retail Ventures is also the holding company for all retail businesses of Reliance Industries.
The allotments happened on February 1 and March 31.
«During the period, the company (RCPL) obtained approval from its shareholders to offer, issue and allot up to 300,000,000 unsecured zero coupon OFCDs of face value of Rs 10 each to its existing holders of equity share on right basis,» said the filing by RCPL. RCPL's authorised share capital is Rs 1 crore, out of which the issued, subscribed and fully paid-up capital is Rs 1 lakh.
The company came into operations from November 30, 2022.
The report also showed that RCPL paid Rs 200 crore for acquiring 50% stake in Gujarat's Sosyo Hajoori Beverages. The joint venture is to expand RCPL's presence in the beverage segment with the Sosyo brand after taking ownership of the Campa brand.
An email sent to RCPL remained unanswered till press time.
An industry executive said Reliance Retail Ventures will pump in more funding into RCPL this fiscal since it wants to scale up the FMCG business nationally.
«The company has aggressive plans to enter each and every category since FMCG is its latest bet,» said the executive, who did not wish to be identified.
