Reliance vs. Orkla: Ambani Eyes Chennai Udhaiyams in South India Food Fight

New Delhi, December 15, 2025: Mukesh Ambani’s Reliance Consumer Products Ltd. (New RCPL) is reportedly in advanced discussions to acquire a majority stake in Chennai-based Udhaiyams Agro Foods, a major regional player in the staples, snacks, and ready-to-cook food sector. This strategic move signals Reliance’s aggressive push into India’s fast-growing consumer goods market and sets the stage for a direct regional showdown with established giants, including those under the Norwegian conglomerate, Orkla.

The Regional Power Play

Udhaiyams, with an estimated annual revenue of around ₹668 crore, is a strong, trusted brand, particularly across South Indian markets. It specializes in essential kitchen items like pulses (dhall) and a range of convenience products such as ready-to-cook breakfast mixes.

• Reliance’s Strategy: The proposed acquisition is seen as a classic “regional-first” play by Reliance. Following the pattern of previous mid-sized acquisitions like the Campa soft drinks and Velvette personal care brands, the goal is to first secure a strong foothold in a key regional market—in this case, South India—before using Reliance’s massive distribution network to scale the brand nationally.
• Taking on the Titans: This deal directly pits Reliance against key competitors who have a strong presence in the South Indian market. These rivals include Tata Consumer Products, the rapidly expanding iD Fresh Food, and crucially, the Orkla Group-owned MTR and Eastern brands. Orkla India, which recently merged its MTR and Eastern businesses, has also emphasized its focus on convenience foods and further M&A to return to double-digit growth. The acquisition of Udhaiyams would be a significant tactical strike against Orkla’s dominance in this regional food category.

The Bigger Picture: India’s Food Fight

The race to acquire regional champions like Udhaiyams reflects a major trend in India’s consumer goods (FMCG) sector. Large, national players are now actively seeking out smaller, nimble brands with deep local connections to quickly diversify their product portfolios and capture local tastes.

1. Surging Market: India’s packaged food market is projected to reach over $224 billion by 2033, driven by rising disposable incomes, urban lifestyles, and a growing demand for convenience foods among young professionals and double-income households.
2. M&A Momentum: Investment banker reports indicate that mergers and acquisitions in India’s consumer sector have reached a four-year high, with food and beverages leading the deal activity.
3. Reliance’s Commitment: The move comes shortly after Reliance restructured its FMCG business into a new direct subsidiary, New RCPL, to sharpen its focus. The company has also announced a substantial ₹40,000-crore agreement with the government to set up food manufacturing facilities across the country, underlining the scale of its ambition in the food sector.

Sources indicate that while Reliance will acquire a majority stake, the current promoters of Udhaiyams—S Sudhakar and S Dinakar—are expected to retain minority stakes and continue their involvement, ensuring brand continuity and regional expertise.

As official announcements remain pending, the market is closely watching this high-stakes battle. The acquisition of Udhaiyams would provide Reliance with an invaluable and immediate entry into the lucrative South Indian kitchen, intensifying the competition for consumer wallets across the entire country.