NCLT Mumbai approves Reliance Retail’s consumer brands restructuring

New Delhi: The Mumbai bench of the National Company Law Tribunal on Thursday, November 6, approved a scheme of amalgamation to transfer Reliance Retail’s consumer brands business undertakings to New Reliance Consumer Products, as per the news report. 

The scheme provides for the transfer and vesting of fast-moving consumer goods (FMCG) brands from Reliance Retail to Reliance Retail Ventures on a slump sale basis, along with the amalgamation of Reliance Consumer Products with Reliance Retail Ventures.

The tribunal noted that Reliance Consumer Products will be dissolved without winding up. As part of the scheme, the name of New Reliance Consumer Products. will be changed to 'Reliance Consumer Products' or another available name approved by the relevant authority.

Reliance Retail Ventures serves as the holding company for various retail businesses of the Reliance Industries group. Reliance Consumer Products, a wholly-owned subsidiary of Reliance Retail Ventures, handles manufacturing, distribution, marketing, and sales of multiple FMCG products. Reliance Retail, another wholly-owned subsidiary of Reliance Retail Ventures, also manages FMCG brand operations.

According to the scheme, the consumer brands business was not part of the retail operations and will now be housed under a direct subsidiary of Reliance Industries, which is New Reliance Consumer Products. 

“Accordingly, this composite scheme is being undertaken as part of internal restructuring of companies in RIL group to house the consumer brands business in New RCPL (Reliance Consumer Products) and will have RIL and other investors of RRVL (Reliance Retail Ventures) holding the same percentage shareholding as in RRVL,” the scheme said.

Shares of Reliance Industries ended 1.6% higher at INR 1,496.10 on the National Stock Exchange on Thursday.