India’s sachet pioneer’s Velvette brand has a new home: Reliance | Company Business News

New Delhi: Reliance Consumer Products Ltd (RCPL) on Friday announced the acquisition of the India business of personal care brand Velvette, founded by the country’s original “sachet king” C.K. Rajkumar, as the Mukesh Ambani-owned group expands its consumer goods portfolio.

The deal entails acquiring the perpetual brand licence and rights for “Velvette” for the India market, according to a statement. RCPL did not disclose the financial details of the transaction.

Reliance plans to scale Velvette’s reach across India, building on its limited presence, and to introduce new mass-market personal care categories. The acquisition is in line with RCPL’s plans to revive formerly dominant Indian brands across various categories, including beverages, pickles, and packaged foods. It has already shaken up India’s highly consumer competitive market with brands such as Campa Cola.

In the 1980s and 1990s, Velvette shampoo was a household name in Tamil Nadu. Its success was largely attributed to Rajkumar, who introduced affordable sachets, making the product accessible to a much wider population, especially in rural areas.

Rajkumar came from a family of traders in Cuddalore, Tamil Nadu. From its flagship shampoo, Velvette expanded its product range over the years to include other personal care and household items.

Rajkumar’s brother, C K Ranganathan, founded Tamil Nadu-based consumer products company CavinKare.

Rajkumar died in 2020. His son Arjun Rajkumar currently owns Chinni Nambi Enterprises LLP or CNE, which handles the marketing and distribution of other brands such as Nivaran 90, Memory Plus, and Memory Vita.

Breathing new life

“RCPL will help breathe new life into Velvette by expanding its reach and bringing the authentic Velvette products to a broader, modern audience,” Rajkumar’s wife Sujatha Rajkumar and son Arjun said in a statement.

The Reliance group company’s acquisition follows the buyout of condiment and pickle brand Sil. It is part of the VKL Food Solutions Enterprise group, which includes Food Service India Private Limited and Nutriti Foods.

RCPL’s 2022 acquisition of beverage brand Campa has already made a dent in the market. In 2023, the company acquired a controlling stake in Lotus Chocolate Company for ₹74 crore. Other brands under RCPL include Sosyo Hajoori, Maliban biscuits, and candies including Pan Pasand and Mango Mood.

RCPL continues to look for opportunities to serve the evolving needs of the Indian consumer, the company said in its statement Friday.

“We are thrilled to welcome Velvette into the Reliance family,” said Ketan Mody, chief operating officer at RCPL. “Velvette’s incredible legacy of innovation and its pivotal role in making personal care products accessible to millions is truly remarkable. We are excited to build on this legacy, enhance its offerings, and take Velvette to new heights, making it an even more integral part of consumers’ lives.”

In the first nine months ended December, the company crossed ₹8,000 crore in revenues, parent Reliance Industries Ltd said in an exchange filing earlier this month. Campa and Independence are projected to cross ₹1,000 crore in turnover each in FY25.

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