2024-09-07 01:44:34
New Delhi: Mukesh Ambani-led Reliance Industries, the country’s most valuable company, is preparing to make a big bet in the FMCG sector. Reliance is preparing to infuse a huge capital of up to Rs 3,900 crore in its FMCG unit through equity and debt. Its main competition in this sector is Hindustan Unilever, ITC, Coca-Cola, Adani Wilmar and other companies. The board of Reliance Consumer Products (RCPL) passed a special resolution for this in an extraordinary general meeting held on July 24. The company has said this in its latest regulatory filing to the Registrar of Companies (RoC). This company was set up in November 2022 and since then this will be Reliance’s largest capital investment in this company. According to the filing, RCPL has increased the authorized share capital of the company from Rs 1 crore to Rs 100 crore and has passed a proposal to raise additional capital up to Rs 3,000 crore. The company has also obtained board approval to offer, issue and allot up to 775 million unsecured zero-coupon optionally fully convertible debentures of ₹10 face value in cash, equivalent to ₹775 crore on rights basis in one or more tranches. Mohit Yadav, founder of business intelligence firm AltInfo, said the capital raising move signals the company’s ambitious growth plans.
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He said this strategic move indicates that RCPL is preparing itself for potential acquisitions, major expansions or significant investments in its product portfolio and market presence. RCPL did not respond to emails seeking comment. The company completes its first full year of operations in 2023-24. A source said current proposals have been passed by the RCPL board to raise capital up to a certain amount, but a final decision on how much and when to raise is yet to be taken.
RCPL had received debt capital of ₹792 crore on rights basis from its holding company Reliance Retail Ventures in FY24. In FY23, RCPL had raised ₹261 crore through the same debenture route. Reliance Retail Ventures director Isha Ambani told shareholders at the Reliance Industries AGM last week that the company’s focus in the consumer brands business is to create high-quality products at affordable prices to drive greater consumption across India.