RIL to spin off consumer goods brands

The company will introduce the facial fitness and skincare brand in India through its beauty platform Tira

- PR SANJAI & SHRUTI MAHAJAN

RELIANCE INDUSTRIES IS transferring all its consumer goods brands to a new wholly-owned subsidiary as the oil-to-telecom conglomerate readies for an initial public offering (IPO) for its retail business.

The brands — spanning apparel, fashion, food, personal care and beverages — currently housed under Reliance Retail, Reliance Retail Ventures, and Reliance Consumer Products will be moved to the so-called New Reliance Consumer Products or RCPL, a National Company Law Tribunal (NCLT) order dated June 25 said.

"This is a large business by itself requiring specialized and focused attention, expertise and different skill sets as compared to retail business," the Reliance firms said in their filing to the NCLT.

The move will allow the capital-intensive consumer goods business to attract a different set of investors, the filing added. It will also give a sharper focus to the retail business which is preparing for a public offering (IPO).