Workflow
Revival of Legacy Brands
icon
Search documents
From Campa to Kelvinator: Why Reliance is buying old, nostalgic brands
The Economic Times· 2026-01-06 17:30
Core Insights - Reliance is reviving legacy brands such as Campa, BPL, and Kelvinator, aiming to leverage nostalgia and aggressive pricing strategies to capture market share in the FMCG and consumer electronics sectors [1][17] - The company plans to double its distribution network to three million outlets and invest Rs 40,000 crore over the next three years to create Asia's largest integrated food parks [10][11] FMCG Sector - Reliance's FMCG business has shown rapid growth, with sales increasing from Rs 3,000 crore in FY24 to Rs 11,500 crore in FY25, and Rs 5,400 crore in the July to September FY26 quarter [1][17] - The company aims to achieve Rs 1 lakh crore in FMCG revenue within five years, positioning itself as India's largest FMCG company with a global presence [11][18] - Reliance is focusing on tier two and three cities, where competition from global brands is less intense, allowing for significant market expansion opportunities [9][18] Consumer Electronics Sector - The reintroduction of brands like Kelvinator and BPL is part of a strategy to compete against established global brands such as LG and Samsung, which have a strong foothold in the Indian market [4][7] - Industry experts note that the consumer electronics market is highly fragmented, and while legacy brands face challenges, there is potential for success if re-launched with strong value propositions [7][8] - Reliance's strategy includes aggressive pricing, often 20 to 30% lower than competitors, and expanding distribution channels to local retailers and e-commerce platforms [2][6] Competitive Landscape - Competitors in the FMCG sector have acknowledged the disruption caused by Reliance, indicating a heightened awareness and responsiveness to market dynamics [14][18] - The revival of legacy brands and the aggressive push into FMCG and consumer electronics suggest that Reliance is preparing for a long-term presence in these markets, driven by nostalgia and competitive pricing [14][18]