Reliance Retail to License Pvt Labels to Consumer Biz

Glimmer, Enzo, Snactac on list of own FMCG brands

- Viveat Susan Pinto

RELIANCE RETAIL, THE country's largest organised retailer, will license its private brands in fast-moving consumer goods (FMCG) to Reliance Consumer Products (RCPL), sources in the know told FE. This is part of its move to hive off its FMCG business into a direct subsidiary of Reliance Industries (RIL), they said.

Reliance Retail owns names such as Snactac (snacks), Puric (hygiene), Enzo (laundry), Glimmer (beauty) and Get Real (personal care) among other private labels in apparel, footwear and electronics, which were launched over the years as part of its private label push into retail.

While private brands as a whole across categories contribute over 65% to Reliance Retail's revenue, FMCG private labels, sources said, contribute around 5% or ₹10,000 crore to Reliance Retail's topline.

Reliance Retail is likely to charge a small licensing fee for the transfer of its FMCG private labels to Reliance Consumer once it is hived off into a direct subsidiary of RIL, they added.