Reliance enters biscuit market, launches new products under Independence brand

Mukesh Ambani's company, Reliance, has taken a major step into India's biscuit market. After challenging large companies in the telecom sector with Jio and in the soft drink market with Campa, Reliance Consumer Products Limited (RCPL) has now entered the biscuit business. The company has introduced a new range of biscuits under its new 'Independence' brand.

According to a report by TV9 Gujarati, Reliance has launched 9 types of variants and 28 SKUs (various pack sizes or versions) simultaneously under this new brand. The prices of these products start at just ₹5. In addition to daily consumption biscuits, the company has placed special focus on products featuring cream and chocolate flavours. Currently, the company has launched these products in Tamil Nadu, where it is also increasing its production capacity and plans to expand into other markets in the future.

Reliance's strategy is to attract customers through low prices and small packs, thereby strengthening its position in household consumption through larger packs later. However, established giants such as Britannia, Parle, and ITC dominate this market. According to Motilal Oswal's estimates for financial year 25, Britannia and Parle together hold more than half of the market share. While market share figures may vary in different research reports, these two companies are the primary players.

Britannia owns popular brands like Good Day, Marie Gold, Milk Bikis, Tiger, and NutriChoice, targeting various consumers ranging from glucose biscuits to premium cookies. On the other hand, Parle-G is a strong player due to its low price, long-standing brand identity, and wide availability from small towns to rural villages. ITC also has a strong presence in the market with products like Dark Fantasy, Marie Light, and Mom's Magic under its 'Sunfeast' brand. Additionally, brands like Priyagold, Anmol, and Dukes also make the competition intense.

Achieving success in this market could prove challenging for Reliance. While Campa Cola adopted a low-price strategy against Coca-Cola and Pepsi in the soft drink market, the situation in the biscuit market is different. During the 'earnings call' held on 6 November, Britannia's CEO and MD Rajnit Kohli stated that the ₹5 and ₹10 price points are already strongly established in the biscuit market. He added that it is difficult to bring about a major change in the market based solely on price, as was possible in the cola industry. Therefore, Reliance will have to provide better value to customers in addition to selling just cheap biscuits.

Reliance Consumer Products Limited is the FMCG arm of the Reliance Group, operating in various consumer goods sectors. The company has previously attempted to challenge large companies by entering the market with brands like Campa Cola.