Reliance’s New FMCG Firm Is ‘The First Of Many Steps’, Says Nomura

“However, the actual distribution reach of the Independence brand into kirana stores, acceptance from consumers, its product price points and addressable market, and product innovation will be key before concluding Reliance’s foray will be a headwind for FMCG companies,” Nomura said.

The entry of another large player in staples and packaged foods, according to Nomura, will “aid and accelerate conversion from unbranded to branded products, thus benefiting and growing the staples and packaged foods categories as a whole”.

It expects Reliance Retail to leverage its tie-up with WhatsApp to enable sales of its branded products across a “significant” user base in the coming years.