Reliance Consumer Products in Advanced Talks to Acquire Majority Stake in Udhaiyams Agro Foods

Reliance Industries’ consumer products arm is reportedly in advanced negotiations to acquire a majority stake in Chennai-based Udhaiyams Agro Foods, a fast-growing packaged food company. The potential deal signals Reliance’s continued push to expand its footprint in India’s staples, snacks, and ready-to-cook food segments.

Reliance Eyes Majority Control in Udhaiyams Agro Foods

Reliance Consumer Products Ltd (RCPL), the FMCG arm of Reliance Industries, is said to be in advanced discussions to acquire a controlling stake in Udhaiyams Agro Foods, according to people familiar with the matter. While the deal value has not yet been disclosed, the talks are understood to be at a mature stage.

Udhaiyams Agro Foods reported revenues of approximately ₹668 crore, making it a sizeable regional player in the packaged food space.

About Udhaiyams Agro Foods

Founded and headquartered in Tamil Nadu, Udhaiyams Agro Foods has built a strong presence in South India with products spanning:

• Staples such as rice and flours

• Snacks

• Ready-to-cook and breakfast mixes

The brand is particularly known for its deep distribution network across southern states and its focus on mass-market, value-driven food products.

Strategic Fit for Reliance Consumer Products

The potential acquisition aligns with Reliance’s broader strategy of scaling regional food brands nationally using its extensive retail and supply-chain infrastructure. Over the past few years, Reliance has actively expanded its FMCG portfolio across categories like beverages, packaged foods, and daily essentials.

Industry observers note that Udhaiyams’ strong regional recall could help Reliance strengthen its position against established players such as MTR Foods, iD Fresh Food, and Tata Consumer Products in the ready-to-cook and staples segments.

Promoters Likely to Retain Minority Stake

Sources indicate that Udhaiyams’ promoters are expected to retain a minority shareholding post-transaction, ensuring continuity in operations and brand management. However, final deal terms, including valuation and stake size, are still under discussion.

India’s Packaged Food Market Draws Big Bets

The talks come at a time when India’s packaged and ready-to-cook food market is witnessing strong growth, driven by urbanisation, rising incomes, and demand for convenience foods. For Reliance, the acquisition could accelerate its ambitions of becoming a dominant FMCG player across food categories.

While the deal has not been officially announced, a successful acquisition would mark another significant milestone in Reliance Consumer Products’ expansion journey. If concluded, the move could reshape competition in the staples and ready-to-cook food space, particularly in southern India, before scaling nationally.

Frequently Asked Questions (FAQs)

Q1. Is Reliance acquiring Udhaiyams Agro Foods?
Reliance Consumer Products is in advanced talks to acquire a majority stake, but the deal has not yet been officially confirmed.

Q2. What does Udhaiyams Agro Foods manufacture?
The company produces staples, snacks, and ready-to-cook breakfast and meal mixes.

Q3. What is Udhaiyams Agro Foods’ revenue?
Udhaiyams Agro Foods has reported revenues of around ₹668 crore.

Q4. Has the deal value been disclosed?
No, the transaction size and valuation have not been made public yet.

Q5. Why is this acquisition important for Reliance?
The deal would strengthen Reliance’s FMCG portfolio and help scale a strong regional food brand across India.