Mukesh Ambani’s masterplan, invest Rs 10000000000 in…, will give BIG challenge to Coca-cola and Pepsi in…
Reliance Consumer Products Ltd (RCPL), the FMCG arm of Mukesh Ambani-led Reliance Industries and owner of the soft drinks brand Campa Cola, is going to establish a new bottling plant in Bihar. It is spread across 35 acres in Begusarai district and an amount of an investment is around Rs 1,000 crore.
The Bihar Industrial Area Development Authority (BIADA) confirmed the development via a post on the social media platform ‘X,’ stating that the land has been allocated to EPIC Agro Product Ltd, the company responsible for producing and distributing Campa Cola.
This new facility will combine bottling and manufacturing operations. It is part of Campa Cola’s plan to strengthen its presence in eastern and northeastern India. A similar plant was announced in Assam just two months ago.This year in February, RCPL inaugurated a new plant in Guwahati, Assam, strengthening the presence of Campa Cola in Northeast India.
It will also have a major impact on its competitors like Coca-cola and Pepsi. Recently Campa-cola has crossed revenue of over Rs 1000 crores and around 10% market share in some of the states. After launching more plants in different states Campa-cola can pose bigger challenges to its competitors in the beverage market.
Reliance, which entered into the fast-growing beverage market in August 2022 after acquiring Campa Cola, is expanding its presence across the country by setting up required infrastructure as supply chain, logistics network and bottling plants.
Campa, which is directly competing with Coca-Cola and PepsiCo, leading players in the cola segment, has disrupted the segment with its aggressive pricing and higher margin to retailers. It has forced players to reduce prices in the select markets where it is available.
On January 16, in its Q3 results, Reliance, which has ambitions to become a relevant player into the FMCG segment, said its Campa brand is projected to cross Rs 1,000 crore turnover in FY25.
Commenting on the development, Nuvama Institutional Equities Executive Director (Research) Abneesh Roy said this indicates Campa is now getting more aggressive in the eastern and northeastern parts of the country.
” We expect these investments to continue and expect that eventually Campa will have a pan-India manufacturing and distribution presence,” he said.
Under the Campa brand, RCPL has launched a range of beverage variants including cola, orange, lemon, and energy drinks. It has also broadened its beverage portfolio with Raskik, a fruit-based rehydration drink, and Spinner, a performance-oriented sports drink.
To support this scale-up, Reliance has established multiple manufacturing plants across the country. Campa has also made its international debut in the UAE and is gearing up to expand into other Middle Eastern markets, Asian countries, and the African continent.
Last month, SLMG Beverages, which is setting up a new plant in Bihar at Buxar with an investment of Rs 1,500 crore, said it has plans to open one more similar plant with an additional investment of Rs 1,500 crore.
Ladhani Group, which owns SLMG Beverages, is the largest bottler of Coca-Cola.
(With inputs from PTI)
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