New Delhi [India]: Reliance Consumer Products Limited (RCPL) took a major step to grow its food business by acquiring a majority stake in Udhaiyams Agro Foods Private Limited. This deal brings the popular Tamil Nadu brand called Udhaiyam under the Reliance family. The move allows Reliance to add strength to its collection of branded staple foods, as per a RCPL press release.
According to the joint venture agreement, Reliance now owns the larger part of the company. The previous owners of Udhaiyams will keep a smaller share. This partnership matches Reliance’s “core philosophy of promoting India’s heritage and legacy brands”. It will help them offer high-quality products at prices that are easy for people to afford and make them popular all over the country.
T. Krishnakumar, Director of Reliance Consumer Products Limited, said, “We are very excited to announce this joint venture, as it further strengthens RCPL’s presence in the branded staples space. This initiative also reaffirms our commitment to offering global-quality products to consumers at affordable price points, while promoting India’s legacy.”
He also mentioned that he was sure Udhaiyam would soon grow into a national brand and satisfy consumers across India, just as it earned the trust of millions in Tamil Nadu.
S. Sudhakar, Managing Director of Udhaiyams Agro Foods Private Limited, stated that this partnership with RCPL opened up new opportunities for Udhaiyam. “With RCPL now taking charge of its expansion, we are confident that the goodness of Tamil Nadu and the rich heritage of the land will resonate with consumers across geographies, while adding value to their lives as we increasingly transition towards a healthier lifestyle,” he said.
The previous promoters, S. Sudhakar and S. Dinakar, will stay with the company. They hold a minority stake following the acquisition. With more than 30 years of experience in the staples category and in scaling the packaged pulses business at Udhaiyams, they will continue with the company and support the next phase of growth.
Udhaiyams Agro Foods Private Limited is well-known for its flagship brand Udhaiyam. It has been around for over three decades. The brand is very famous in Tamil Nadu. The brand has established itself in key staple and food product categories, including rice, spices, snacks and idli batter, among others, supported by a wide distribution network. (ANI)
