Latest News

Ambani's Reliance spins off India consumer products business into a new unit

Reliance Industries, owned by Indian billionaire MukeshAmbani, said it would spin off its consumer products unit to create a new company to attract additional investors to the business.

Reliance has a consumer business that includes brands like Campa Cola which competes against Coca-Cola and Pepsi. There are also dozens of snacks and confectionery products, such as Mondelez Cadbury chocolates, who fight for shelf space.

According to a June 25 order, which was reported for the first time by Indian media, India's National Company Law Tribunal approved the internal restructuring, under which Reliance would transfer its consumer business, from its retail arm, into a subsidiary directly, New Reliance Consumer Products Ltd.

According to the order, Reliance stated in its application for approval before the tribunal that "this is a very large business requiring special attention and expertise, as well as different skill sets compared to retail businesses."

This business requires large capital expenditures on a continuous basis, and it can attract different investors."

Reliance Industries holds a stake of 83.56% in the entity.

Reliance Retail has been planning its own IPO.

Reliance Retail announced on Thursday a strategic investment in FACEGYM (a facial fitness company and skincare firm based in the UK), without disclosing a specific investment amount. (Reporting and editing by Aditya K. Kalra, Sharon Singleton and Dhwani Paandya)

(source: Reuters)