Reliance Consumer Products set to buy SIL's brands to spice up play; plans to compete with HUL, Cremica & Tata

Reliance Consumer Products (RCPL) is set to acquire packaged foods brand SIL, with a portfolio of products such as cooking pastes, jams, mayonnaise, baked beans and Chinese sauces, executives with direct knowledge of the development said.

"The acquisition formalities have been completed. Pune-based SIL Food India operates mainly in Western and Southern markets, and Reliance Consumer plans to scale up distribution nationally, to set up competition directly with players such as HUL, Tata Consumer and Cremica, and strengthen its position in the FMCG sector," one of the executives said.

Reliance Consumer will acquire SIL's brands from its current owner Food Service India. The size of the transaction could not be independently confirmed. SIL has manufacturing facilities near Pune and Bengaluru, according to information on its website.

The 75-year-old SIL Food, originally started as James Smith & Co, was acquired by Marico Industries in 1993. Marico subsequently sold the business to Scandic Food India, a subsidiary of Danish business house Good Food Group. And in 2021, Food Service India, which supplies seasonings, spices and condiments to hotels and restaurants, acquired SIL Foods.

Emails sent to the offices of Reliance Consumer Products and Food Service India remained unanswered till press time on Tuesday.

"Reliance Consumer will continue with its strategy of pricing the products lower than established rivals, offering higher trade margins to retailers and re-introducing legacy brands," the executive mentioned above said. RCPL is acquiring SIL's brands, not the company or manufacturing facility, he added. The company's acquisitions in the past couple of years include Ravalgaon and Toffeeman confectionery, Campa soft drinks, Raskik beverages, Sosyo carbonated drinks and Lotus chocolates.

Last week, RCPL, a wholly owned subsidiary of Reliance Retail Ventures (RRVL), reported a top line of ₹8,000 crore for the first nine months of FY25. Reliance Retail Ventures announced in its December quarter earnings that its Campa and Independence brands are projected to touch ₹1,000 crore by the end of FY25. The company said RCPL witnessed a near 300% year-on-year growth in its network of distributors and merchant outlets in the October-December quarter.

Food Service India reported revenues of '240 crore in FY24.

Recent deals in the packaged foods space include Samara Capital-backed Agro Tech Foods acquiring 100% stake in Del Monte Foods, a joint venture between Sunil Mittal's Bharti Enterprises and Del Monte Pacific of Singapore, for ₹1,300 crore.

Last year also saw food services and contract catering company Compass India Food Services, a wholly owned subsidiary of the $38 billion British Compass Group, buying a majority 70% stake in Delhi-based food catering company ICS Foods.