Mumbai: It has been reported that Reliance is planning to buy Kalimark, a famous soft drink company from Tamil Nadu.
Reliance is currently making a foray into the soft drinks market. Reliance Consumer, one of the Reliance Group companies, acquired Campa Cola from Pure Drinks Group in August last year. Campa Cola was a popular soft drink brand in India in the 1970s-80s. After globalization in the 1990s, the market for Campa Cola declined as soft drinks from Coca-Cola and Pepsi invaded the Indian market.
In this case, Campa Cola is now being bought by Reliance Group and is trying to make it India’s premier soft drink brand again.
Currently, Reliance is selling Campa Cola soft drink at 30 percent less than other companies. Because of this Coca Cola and Pepsi companies are under crisis.
In January this year, Reliance acquired 50 per cent stake in Gujarat’s famous soft drink company Sosyo Hajuri, following Campa Cola in an attempt to expand its soft drinks market.
In this case, it has been reported that Reliance has embarked on an attempt to buy a large share of Kalimark Company to solve the problems related to Campa Cola production, distribution and sales and to create a strong foundation for its soft drink market in Tamil Nadu. Final negotiations between Reliance and Kalimark are said to be going on.
Kalimark is a company started in 1916 in Virudhunagar. Pavantho is the company’s famous soft drink. Reliance is said to be planning to buy a majority stake in Kalimark to produce Campa brand soft drink in 8 plants owned by Kalimark while continuing to sell Kalimark’s products including Bavanto and Kalimark Soda.