Whalesbook
Nostalgia-Fueled Expansion
Reliance Industries is aggressively pursuing a strategy of acquiring and revitalizing beloved, legacy Indian brands such as Campa, BPL, and Kelvinator. This move targets the fast-moving consumer goods (FMCG) and consumer electronics sectors, banking heavily on consumer nostalgia and deep market penetration. The company sees a renewed sparkle in the adage ‘Old is Gold’ for its consumer venture.
Aggressive Market Play
Reliance's FMCG business saw a remarkable surge, with sales escalating from ₹3,000 crore in fiscal year 2024 to ₹11,500 crore in the following year. The July-September quarter of fiscal year 2026 alone posted a staggering ₹5,400 crore. This revival story is striking a chord, with Campa already being the largest contributor.
The company is injecting fresh life into acquired legacy brands like Ravalgaon in confectionery and Velvette in personal care. Reliance is applying a familiar formula: aggressive pricing, often 20% to 30% lower than competitors, generous trade margins for retailers, and rapid distribution expansion from its own stores to local kiranas and outlets.
Electronics: A High-Stakes Battle
In consumer electronics, Reliance is reintroducing once-staple brands like Kelvinator and BPL. While Campa found success in a category linked to instant gratification, electronics represents a high-ticket, long-term purchase. Marketers question whether younger consumers, spoiled for choice by global brands like LG and Samsung, will opt for Kelvinator refrigerators or BPL TVs.
Industry executives note that electronics will be a tough play against international brands with decades of presence. Companies like LG, Samsung, and Sony have cemented their positions, with newer entrants like Haier and Voltas Beko rapidly gaining ground. Success hinges on re-launching brands with strong value and emotive hooks, beyond just being price warriors.
Deep Pockets, Ambitious Goals
Reliance's deep pockets and strong market presence through its extensive retail stores are significant advantages. Experts believe Reliance has the intent to dominate markets. The conglomerate is approaching these sectors in startup mode, investing heavily, gaining market share, absorbing initial losses, and then driving efficiencies for profit. Isha Ambani, who spearheads the retail and FMCG businesses, has set a bold target of ₹1 lakh crore in FMCG revenue within five years, aiming to become India’s largest FMCG company with a global presence.
Competitors acknowledge the turbulence created by Reliance's aggressive push. However, low penetration levels in electronics, particularly in tier two and three cities, present substantial headroom for growth. Reliance's strategy appears geared for the long haul, leveraging nostalgia, competitive pricing, and distribution muscle.