Reliance to acquire 50% stake in Gujarat-based beverages firm Sosyo

On Tuesday (3 January 2023), Reliance Consumer Products (RCPL) — the FMCG branch of a wholly owned subsidiary, Reliance Retail Ventures (RRVL)– proudly declared its intention to acquire 50% equity in Sosyo Hajoori Beverages (SHBPL). This Gujarat-headquartered company promises to be an outstanding addition to RCPL’s diverse range of products.

Since 1923, Sosyo Hajoori Beverages has proudly owned and maintained its flagship brand ‘Sosyo’, making it one of India’s most iconic heritage brands. With approximately a century-long legacy in carbonated soft drinks (CSD) and juices, the company remains a major player in the domestic soft drink market today.

The family business of Hajoori will remain in possession of the remaining SHBPL shares, according to the announcement.

SHBPL is currently under the leadership of Abbas Hajoori and his son Aliasgar Hajoori, who have an impressive portfolio of multiple popular beverage brands such as Sosyo, Kashmira, Lemee, Ginlim, Runner, Opener. Additionally they boast a strong expertise in formulating over 100 unique flavors for their customers to choose from including the beloved Sosyo which has garnered a dedicated following within Gujarat.

Isha Ambani, executive director of Reliance Retail Ventures, expressed that this investment allows them to realize their objective of empowering local heritage brands and providing those businesses with fresh possibilities for growth. She said-

“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.”

RCPL, a subsidiary of Reliance Industries, has announced its goal of providing Indian consumers with local products and brands that will bring more value to their lives.

RCPL is proud to introduce its newest brand, ‘Independence’, as well as the highly-acclaimed beverage label, ‘Campa’. To maximize our portfolio’s reach and growth potential, RCPL has also designed a specialized retail network that caters exclusively to these two brands. With this innovative distribution channel in place, we expect significant gains across both labels!

Abbas Hajoori, Chairman of Sosyo Hajoori Beverages, proclaimed that their collaborative strengths will make the signature-tasting beverages available to all in India – a milestone after almost 100 years within the world of drinks.

By joining forces with Sosyo, Reliance will continue to fortify its beverage offerings that already include the iconic Campa brand. Moreover, Sosyo’s formulation proficiency can be used to create an exclusive value proposition for products in the portfolio and customers alike; this was communicated by the company in a press release.

On 29 December 2022, Reliance Industries declared that RCPL, its fully-owned FMCG arm and a subsidiary of RRVL will be obtaining 65,48,935 equity shares from LOTUS’ current promoter and promoter group representing 51% of the paid-up capital at an amount equivalent to Rs 113 per share totaling approximately Rs 74 crore.

RCPL and promoter groups of LOTUS will purchase 5,07,93,200 preference shares at par value (Rs 10) each to be held without cumulative interest.

RRVL, a subsidiary of Reliance Industries (RIL), is the official holding company for all retail businesses operating under RIL. Through its subsidiaries and affiliates, RRVL maintains ownership over 16,500 stores while collaborating with more than 2 million merchants in various categories such as Grocery, Electronics, Apparel, Pharmacy, Lingerie Home and Furnishing Beauty and Personal Care.

RRVL’s FMCG subsidiary, Reliance Consumer Products Ltd offers a variety of products under its diverse brand portfolio while operating the largest omni-channel business network through Jio Mart, Ajio, Netmeds and Zivame. With this comprehensive range of offerings at your disposal, you can be sure to find something that matches your every need!

India’s biggest private company, RIL, covers a multitude of activities from oil and gas exploration to digital services. In Q2 FY23 compared to the year before, its consolidated net profit declined by 0.2%, yet their total income increased 37.3% to Rs 23055 crore!

Reliance Industries’ stock prices plummeted by 1.13% to Rs 2,528.05 on the BSE today.

This latest development reflects the company’s commitment to expanding its presence in India and globally. With it, RRVL aims to deliver innovative FMCG products and services to the Indian market.

The move also reflects their objective of empowering local heritage brands and providing those businesses with fresh possibilities for growth.

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