Reliance Consumer Products Ltd (RCPL), the fast-moving consumer goods arm of Reliance Retail Ventures Ltd, said it will acquire a 50% equity stake in Gujarat-based Sosyo Hajoori Beverages, which owns and operates a beverage business under the flagship brand 'Sosyo'.
The existing promoters, Hajoori family, will continue to own the remaining stake in the 100-year-old soft drink maker.
The announcement comes days after the FMCG arm of Reliance acquired a 51% stake in Lotus Chocolate Company for ₹74 crore. The Mukesh Ambani-led conglomerate will also make an open offer to acquire another 26% stake in the chocolate maker.
Reliance has been on an acquisition spree. In September, the company acquired the homegrown soft drink brand Campa from Delhi-based Pure Drinks Group for around ₹22 crore. Campa Cola was a market leader in the Indian soft drink market in the 1970s and 1980s until foreign brands Pepsi and Coca-Cola entered the domestic market in 1990s.
India's largest company by market value forayed into FMCG business in December 2022. Reliance Consumer Products launched its FMCG brand 'Independence' for staples, processed foods, beverages and other daily essentials in Gujarat. The brand will be rolled out across India in a few months.
Last month, RCPL parent Reliance Retail Ventures acquired a 100% stake in METRO Cash & Carry India, a wholly-owned subsidiary of German wholesaler METRO AG, for ₹2,850 crore.
Established in 1923 by Abbas Abdulrahim Hajoori, Sosyo has several beverage brands in its portfolio including Sosyo, Kashmira, Lemee, Ginlim, Runner, Opener, Hajoori Soda and S'eau. The Sosyo brand boasts a loyal customer base in Gujarat.
"This investment helps us take forward our vision of empowering local heritage brands and presenting them with new growth opportunities. We welcome the desi power of century-old Sosyo's heritage beverage brands to our consumer brand portfolio and are confident that our knowhow, consumer insights and retail distribution strengths will help accelerate the growth momentum of Sosyo," says Isha Ambani, executive director, Reliance Retail Ventures.
With this joint venture, Reliance plans to further strengthen its portfolio in the beverage segment having already acquired the iconic brand Campa. In addition, Sosyo's expertise in formulations can be leveraged to develop a unique value proposition for the product portfolio and consumers, the company says.
"We are delighted to enter into this partnership with Reliance Consumer Products, a strong and willing partner that can help Sosyo rapidly scale up its reach. Combining our relative strengths, we would make the unique tasting beverage products of Sosyo accessible to all the consumers in India. It is a defining moment in our near 100-year journey in beverages," says Abbas Hajoori, chairman, Sosyo Hajoori Beverages Pvt Ltd.
