Mukesh Ambani to compete with Adani firm, plans to invest Rs 3900 crore in...

Mukesh Ambani, Reliance Industries chairman, is planning for a massive capital infusion of Rs 3900 crore in his FMCG arm. The investment will be done through a mix of equity and debt, ET reported. This will be Reliance's highest capital infusion into the FMCG entity since its inception in November 2022. For the unversed, Reliance is India's most valuable company with a market cap of Rs 20.20 lakh crore. It is present in several businesses through its subsidiaries.

With the massive infusion into the FMCG arm, Reliance Consumer Products (RCPL) will compete with Gautam Adani's Adani Wilmar, Hindustan Unilever, ITC, Coca-Cola and others.  As per the ET report, the board of RCPL passed special resolutions to raise capital for 'business operations' at a general meeting held on July 24, RCPL said in its latest regulatory filings to the Registrar of Companies (RoC).

As per RoC filings, RCPL has increased the authorised share capital of the company to Rs 100 crore from Rs 1 crore. It also passed a resolution to borrow up to Rs 3,000 crore in excess of the aggregate of its paid-up share capital, free reserves and securities premium.

Reliance’s FMCG arm operates under brand names like Smart Bazaar. It is part of its broader retail segment, which also includes electronics, fashion, and connectivity products. RCPL clocked Rs 3,000 crore sales in FY24, its first full year of operations, with beverage brand Campa Cola alone contributing Rs 400 crore.