Reliance Cola

Coca-Cola India and Pepsi are all set to face a new competitior. And it’s non other than Reliance. Mukesh Ambani’s Reliance retail plans to launch its own cola which will be retailed through its supermarkets across the country.



The brands owned by the retailers are known as private brands. Reliance has plans to introduce private brand across a range of products. It will enable to sell the product at a cheaper rate. Worldwide the share of private label is 17% in FMCG sector.

Reliance is betting on large customer base. It is going to open its retail store across the whole country. So this strategy adopted by the company is definitely going to work for it if it is selling the right product. It is said that it is in talk with some Chinese company. If the news is correct then it is following the strategy of major retailers like Wal-Mart and Tesco. Many of their products are manufactured in countries like China and India and sold under the private brands. It enables them to sell the product at comparatively lower price.


The existing companies like Coca-Cola and Pepsi will be having tough time. They are already loosing their market because of the political issue of pesticide. This will be another attack to these MNCs.

There is a huge potential in cold drinks market in India. The per capita consumption in India is between 5 to 6 which is very less compared to Chinas per capita consumption of around 20.

Recently it was found that the local brands are doing well in the Retail stores in terms of their sales. So the Reatail chain is a place where the customer has wide range of choice to buy a product in the same category. If the local brands can compete with the established brands then Reliance can have win-win situation.

The present retail chains like Food-World of RPG and Big-Bazar of Future Group (Pentaloon) have their private brands across food products such as Jam, Sauces, Pickles, Ghee, Atta etc. These private brands are preferred because they are of lesser price then the products from HLL and P&G etc. As the Indian consumers are price conscious they choose these products for a trial. If the product is good it gets the preference of the customer.

With the emergence of the private brands the competition will increase. This is definitely good for the customers as they will get quality product at lesser price.

Source: Economic Times