🧠 RIL’s Genius Acquisition Strategy Decoded
RIL has been making a lot of acquisitions lately. And we've noticed a pattern. ReadOn!
The day when Mukesh Ambani doesn't make headlines will be the day when the sun rises from the West.
Yep, that’s just not happening.
So, here we are, bringing to you yet another potential deal by RIL.
RIL is in talks to finalise a deal with Kali Aerated Water Works, the maker of Bovonto, a super popular soda in the South.
What has gotten Mr. Ambani interested this time? And is there a pattern in RIL’s recent acquisitions?
Let’s take a look.
ReadOn!
🤝 RIL's Latest Deal
We'll talk about the latest deal first.
RIL has had its eye on Kali Aerated Water Works for quite some time now.
In fact, before it even bought Campa Cola, it had plans to acquire a majority stake in Kali Aerated Water Works.
While the acquisition deal may have failed, a partnership deal is still on the table.
A partnership for manufacturing and distribution.
This partnership will help RIL distribute Campa Cola in the South.
After all, why build from scratch when you can partner with the best in town and scale faster?
This is RIL’s strategy across industries and across geographies.
It has acquired a 50% stake in Gujarat’s beverage maker, Sosyo Hajoori Beverages.
Looks like RIL has distribution sorted for Campa Cola.
Plus, these regional brands have been growing at double the pace of national brands like Coca-Cola and Pepsi.
So, betting on them makes sense. But there’s another reason RIL is betting on these brands.
You see, after covering so many acquisitions of RIL, we have noticed a pattern.
👀 RIL Has A Type
RIL is on a spree to acquire old and local brands in diverse sectors.
It has acquired Lotus Chocolates, one of the rare Indian chocolate brands.
It has also acquired the licence to manufacture electronics under the BPL brand name.
Reports suggest it also wants to acquire Garden Namkeens, Varalakshmi and Insight Cosmetics.
Now, you may not have heard of these brands.
But RIL has its eyes on them for two reasons:
They’re popular in regional markets
They’re Indian
First, it doesn’t have to spend time and effort to create a brand from scratch. It can just focus on scaling this existing brand.
Second, acquiring Indian brands reinforces the aatmanirbhar angle of RIL, a truly Indian brand.
And why not?
Foreign brands have ruled our markets for a long time.
Be it Coca-Cola or Mondelez or Samsung and Hitachi.
It’s high time we support and promote local brands and boost our economy.
And it looks like RIL’s make-in-India plan is working.
With the launch of Campa Cola, the soda price wars have already begun (you can read more about it here).
RIL’s acquisitions don’t just scare off competitors, but they change the face of the entire industry, be it through pricing or innovation.
But RIL has been entering multiple industries very fast lately.
There’s the FMCG space, where RIL wants to do everything.
There’s the OTT space, where RIL is going to launch over 100 new titles.
There’s the beauty space, where RIL has launched Tira Beauty, a platform for buying beauty and personal care products.
Is RIL biting off more than it can chew?
Only time will tell.
What are your thoughts on RIL’s strategy?
Will the RIL name and the aatmanirbhar angle be enough for RIL to succeed?
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Fascinating article on RIL's acquisition strategy, focusing on regional and Indian brands! This approach boosts local businesses, but do you think RIL's rapid expansion into various industries will pay off or is it a risky move? 🤔
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