Reliance Consumer Products, under the leadership of Mukesh Ambani, is reportedly preparing for a significant acquisition in the packaged food sector. The company is poised to acquire SIL Food India, a brand known for its wide range of food products, including jams, mayonnaise, cooking pastes, Chinese sauces, and baked beans. Based in Pune, SIL Food India primarily serves markets in the western and southern parts of India.
Key Details of the Acquisition
As per a report by The Economic Times, the acquisition of SIL Food India by Reliance Consumer Products is set to proceed, with all formalities reportedly already completed. With this strategic acquisition, Reliance Consumer Products Limited (RCPL) is set to pose strong competition to other major FMCG giants such as Hindustan Unilever (HUL), Tata Consumer Products, and Cremica. The deal will involve Reliance taking control of the SIL brand from its current owner, Food Service India, but not the company or its manufacturing facilities.
The History Behind SIL Food India
SIL Food India, originally known as James Smith and Company, has a long history in the Indian food industry. The brand was acquired by Marico Industries in 1993, after which it was sold to Scandic Food India, a subsidiary of Denmark’s Good Food Group. In 2021, Food Service India, a company specializing in supplying seasonings, spices, and masalas to the hospitality industry, took ownership of SIL Foods.
RCPL’s Broader Acquisition Strategy
Reliance Consumer Products has been following a clear strategy to keep its product prices competitive, offer higher profit margins to retailers, and breathe new life into well-established brands. The acquisition of the SIL brand, although it does not involve the company’s assets or manufacturing plants, is seen as part of RCPL’s broader plan to expand its footprint in the FMCG sector. Recent acquisitions by RCPL have included brands such as Rawalgaon and Toffyman Confectioneries, Campa Soft Drinks, Raskik Beverages, Sosyo Carbonated Drinks, and Lotus Chocolates.
With this latest acquisition, Reliance Consumer Products continues to position itself as a formidable player in the Indian FMCG market, aiming to challenge established competitors and reach a broader consumer base.