Reliance Retail Ventures Limited, the retail subsidiary of India's largest private sector company, Reliance Industries, has announced its strategic partnership with Ceylon Beverages International, a Sri Lankan beverage processing and filling company. As part of the partnership, Ceylon Beverages International will co-pack the cans for Reliance's newly launched beverage brand, Campa, in India. This partnership will also see the establishment of a manufacturing unit between the two companies in India.
The Background of the Partnership
Mukesh Ambani's Reliance Retail Ventures Limited launched Campa, a new range of carbonated beverages in India in March this year. The brand was previously owned by Pure Drinks Group, and Reliance Retail Ventures acquired it for Rs 22 crore. To cater to the increasing demand for the product, Reliance has partnered with Ceylon Beverages International, owned by Sri Lankan cricketer Muttiah Muralitharan. Ceylon Beverages International has a capacity to fill 300 million beverage cans per year and has partnerships with international, national, and regional beverage companies.
Manufacturing Partnership for Campa
Currently, Reliance is importing Campa cans from Sri Lanka. However, Ceylon Beverages International plans to set up a manufacturing unit for Reliance Consumer Products Limited (RCPL) in India. As a part of the partnership, RCPL may also get distribution rights for certain brands of Ceylon Beverages International in India. This partnership will be beneficial for Reliance as it aims to compete with beverage giants like Coca-Cola and PepsiCo at the national level.
The Benefits of the Partnership
Reliance Retail Ventures Limited is rapidly expanding its reach among small and mid-sized distributors. The company's partnership with Ceylon Beverages International will provide an opportunity to offer an innovative range of beverages to Indian consumers. The partnership will also allow Reliance to enhance its existing supply chain capabilities and improve the distribution network for Campa. The collaboration will benefit Ceylon Beverages International as it seeks to expand its footprint in India, the world's second-largest market for beverages.
Final Thoughts
While there has been no official statement from Reliance Consumer Products or Ceylon Beverages International yet, the partnership with Muttiah Muralitharan's company signals Reliance's intent to further strengthen its presence in the Indian market. The deal with Ceylon Beverages could also help Reliance compete with established brands in the beverage industry and expand its reach across the country. We will have to wait and see how this partnership evolves in the future.
