'GST cuts helped us make products more affordable': T Krishnakumar, director at Reliance Consumer Products

MUMBAI: The new GST regime will make products more affordable for consumers, boosting consumption, said T Krishnakumar, director at Reliance Consumer Products (RCPL) which has started production of new packs with a target to roll them out in the market by the end of the month.

"In India, one of the biggest barriers to consumption is affordability. GST reform is a move in the right direction, and it will benefit consumption growth, without a doubt," Krishnakumar told TOI in an exclusive interview ahead of the implementation of the new tax rates. The rejigged tax slabs come into effect from Monday with the onset of Navratri.About 65%-70% of RCPL's portfolio which includes food, beverages, confectionary and personal care will get covered under the new GST rates.

The company, which competes with global giants such as Unilever, Nestle, Pepsico and a host of homegrown players including Dabur and ITC in the market has cut prices across its brands ranging from Maliban cookies, Masti Oye! snacks and Glimmer soaps. For now, it is also slashing prices of small packs given that grammage addition takes time (weight increase may happen in new packs). "Small packs outnumber large packs for us by a substantial margin in all categories except staples," Krishnakumar said, adding that the frequent notifications issued by the govt this time has eased the process of transitioning to the new regime for businesses.

RCPL, he said, didn't face any major issues with inventory management.

"Our stocks tend to last only for 10-12 days on retail shelves, so it hasn't been much of an issue," Krishnakumar said. For RCPL which launched operations in Nov 2022, the geographical reach is still not as expansive as older incumbents. RCPL, which is set to be a direct subsidiary of Reliance Industries recorded revenues of $1.4 billion (over Rs 11,000 crore) in FY25.

A large part of the growth for the business which has expanded its coverage of FMCG has come on the back of acquisitions and joint venture partnerships, a strategy which Krishnakumar said will continue alongside building own brands. The firm has charted a plan to become a national player (across product segments) in three years. "We have started expanding geographies. Our branded staples and beverages portfolio will become fully national by March 2026. We will keep expanding in other categories and in three years' time, we will be a national player across segments. We are just about entering the general merchandise category (brooms, washing kits etc) and this too will be scaled nationally in three years," Krishnakumar said.

RCPL's acquisition strategy has largely been focused around buying old, struggling heritage Indian brands and reviving their growth.