Reliance relaunches Campa in India: Is this its next disruptor
Reliance is known for being a market disruptor. The company first disrupted the telecom sector with Jio. Its new target is the aerated drinks market dominated by PepsiCo and Coca-Cola, and it has the perfect product to do so: Campa. The company has (re)launched Campa, India's own iconic soft drink brand that became a household name in the late '70s and '80s.
Why does this story matter?
- Fast-moving consumer goods (FMCG) is the fourth-largest sector in the Indian economy. The market is expected to reach $220 billion in value at a CAGR of 14.9% by 2025.
- The sector is dominated by companies such as ITC, Hindustan Unilevel, Marico, and Nestlé India, among others. Reliance wants a piece of this lucrative pie, and it is making its intention known.
Reliance acquired Campa for Rs. 22 crore
At Reliance Industries Limited's (RIL) 45th annual general meeting, chairman Mukesh Ambani introduced his daughter Isha Ambani as the new leader of the conglomerate's retail business. "This year, we will launch our FMCG goods business," she said at the meeting. A couple of days after the meeting, the company acquired Campa from Pure Drinks Group for about Rs. 22 crore.
Reliance possibly has big plans for Campa
The acquisition of Campa is only the beginning of Reliance's plans to disrupt the FMCG sector. The company also plans to launch its beauty platform Tira very soon. Campa is a brand known to Indians, and that makes its acquisition very special. Many believe Reliance is thinking big if it spent Rs. 22 crore to acquire the brand.
Reliance can take on PepsiCo and Coca-Cola
Campa retreated from its home turf after failing in front of PepsiCo and Coca-Cola's deep pockets. Despite its will to compete against the global giants, the local company had no answer to its rivals' aggressive advertising and robust network. Reliance will be a completely different beast in this regard. It has the financial muscle to go toe to toe with the two giants.
Reliance has aggressively priced Campa
Reliance is pushing Campa through its own retail stores. The company is selling Campa 2-liter drinks for around Rs. 60, undercutting PepsiCo and Coca-Cola by around Rs. 20. The same strategy that worked for Jio could work for Campa too. Both PepsiCo and Coca-Cola have to think about their brand when it comes to quality, but Reliance takes over markets by slashing prices.
Campa is available in three flavors
We will see how Reliance approaches this market soon enough. In the meanwhile, let's take a look at what the company is offering. The Campa line-up initially includes Campa Cola, Campa Lemon, and Campa Orange. The product is available in 200ml, 500ml, 600ml, 1,000ml, and 2,000ml bottles. "The Great Indian Taste" will be back with Campa, said Reliance Consumer Products Limited.
