Reliance eyes majority stake in Udhaiyams Agro Foods; to take on iD Fresh, MTR: Report
Chennai-based Udhaiyams competes in regional markets against established players such as Tata Consumer Products, iD Fresh Food, and MTR.
- Dec 15, 2025,
- Updated Dec 15, 2025 8:43 AM IST
Reliance's consumer products arm is reportedly in advanced talks to acquire a majority stake in Udhaiyams Agro Foods, a Rs 668-crore staples, snacks and ready-to-cook breakfast mixes maker.
According to a report in The Economic Times, the potential transaction is expected to be mid-sized and is likely to follow the pattern of Reliance's previous acquisitions. The strategy is to initially enter regional markets and later extend the brands nationally, according to one of the executives.
Chennai-based Udhaiyams competes in regional markets against established players such as Tata Consumer Products, iD Fresh Food, and MTR. Its promoters S Sudhakar and S Dinakar will continue to hold minority stakes in the company, the report added.
Udhaiyams Agro Foods was incorporated as an unlisted private entity in July this year by its parent company, Shri Lakshmi Agro Foods, with Sudhakar and Dinakar serving as founding directors.
This development comes on the heels of Reliance Retail transferring its fast-moving consumer goods business into New RCPL, a direct subsidiary of Reliance Industries. The move is part of a broader effort to intensify focus on packaged consumer brands, including beverages, foods, personal care items, and beauty products, the report stated.
Last fortnight, Reliance announced in an exchange filing that it has dissolved Reliance Consumer Products (RCPL) as a subsidiary of Reliance Retail, establishing New RCPL under a scheme of arrangement effective from December 1.
In a related move, Reliance Consumer has entered a Rs 40,000-crore agreement with the government to establish food manufacturing facilities across India. The Mukesh Ambani-backed entity reported revenue surpassing Rs 11,000 crore in FY25.
According to Imarc Group, India’s packaged food market will notch up sales of $224.8 billion by 2033, growing at a CAGR of 6.5 per cent between 2025 and 2033.
Reliance's consumer products arm is reportedly in advanced talks to acquire a majority stake in Udhaiyams Agro Foods, a Rs 668-crore staples, snacks and ready-to-cook breakfast mixes maker.
According to a report in The Economic Times, the potential transaction is expected to be mid-sized and is likely to follow the pattern of Reliance's previous acquisitions. The strategy is to initially enter regional markets and later extend the brands nationally, according to one of the executives.
Chennai-based Udhaiyams competes in regional markets against established players such as Tata Consumer Products, iD Fresh Food, and MTR. Its promoters S Sudhakar and S Dinakar will continue to hold minority stakes in the company, the report added.
Udhaiyams Agro Foods was incorporated as an unlisted private entity in July this year by its parent company, Shri Lakshmi Agro Foods, with Sudhakar and Dinakar serving as founding directors.
This development comes on the heels of Reliance Retail transferring its fast-moving consumer goods business into New RCPL, a direct subsidiary of Reliance Industries. The move is part of a broader effort to intensify focus on packaged consumer brands, including beverages, foods, personal care items, and beauty products, the report stated.
Last fortnight, Reliance announced in an exchange filing that it has dissolved Reliance Consumer Products (RCPL) as a subsidiary of Reliance Retail, establishing New RCPL under a scheme of arrangement effective from December 1.
In a related move, Reliance Consumer has entered a Rs 40,000-crore agreement with the government to establish food manufacturing facilities across India. The Mukesh Ambani-backed entity reported revenue surpassing Rs 11,000 crore in FY25.
According to Imarc Group, India’s packaged food market will notch up sales of $224.8 billion by 2033, growing at a CAGR of 6.5 per cent between 2025 and 2033.