Mukesh Ambani’s Reliance looks to disrupt dominance of MNCs in consumer electronics, home appliances; wants to replicate JioPhone success

Apr24,2024


Mukesh Ambani-led Reliance Industries Limited (RIL) is gearing up to challenge the dominance of foreign companies in India. consumer Electronics And home appliances In the market with its new indigenous brand, visor, RIL is in the process of finalizing manufacturing contracts with local companies Dixon Technologies and Onida's parent company Mirk Electronics, according to two officials familiar with the company's plans.
Officials told ET's Ritankar Mukherjee that RIL aims to set up its own manufacturing facilities in the future once the brand achieves a significant market share.
Reliance RetailRIL's retail arm recently introduced Vizzr air coolers and intends to expand the product range to include televisions, washing machines, refrigerators, air conditioners, small appliances and LED bulbs. The company plans to develop and design these products internally, as it attempts to build a homegrown brand in a market currently dominated by international labels.

Reliance plans for consumer electronics, home appliances

Reliance plans for consumer electronics, home appliances

Earlier, Reliance Retail had launched a private label brand called Reconnect, which included products manufactured by third-party companies. During RIL's fourth quarter earnings call on April 22, Dinesh Taluja, chief financial officer of Reliance Retail, mentioned the launch of the new brand without giving further details.
According to sources familiar with the matter, Reliance plans to distribute Wyzr products through various channels including its own Reliance Digital stores, independent dealers, regional retail chains and e-commerce platforms like Amazon and Flipkart. JioMart Digital (JMD), the company's B2B electronic products distribution arm, will be responsible for taking Wyzr to other stores. In FY24, JMD experienced 20% growth in its merchant base.
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Wizzer products are expected to be more affordable than established brands like LG, Samsung and Whirlpool, which currently hold dominant positions in categories like TVs, refrigerators and washing machines. In the air conditioner market, Tata-owned Voltas is the leader, followed by multinationals like LG and Daikin.
“Reliance had earlier created a stir in the MNC-dominated feature phone market with its product, JioPhone. It wants to replicate the success in electronics in a sustained manner by riding the Make-in-India wave,” an official said.
In 2022, Reliance acquired 50.1% stake in the Indian unit of US-based manufacturing solutions company Sanmina for Rs 1,670 crore to expand its presence in the electronics manufacturing sector. According to an executive, Sanmina operates a 100-acre campus in Chennai, where it may set up a plant for Vyzer products. However, the official added, “But nothing has been decided yet and the priority right now is to launch the products.”
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Reliance Retail did not respond to queries about their plans to launch their own brand of consumer electronics. Vijay Mansukhani, managing director of Mirk Electronics, declined to comment on the matter, and an email sent to Dixon remained unanswered.
In the past, Reliance Retail had attempted to sell televisions and appliances under the Reconnect brand name, but success was limited as these products were designed and manufactured by partners. The products were sold exclusively through Reliance Digital stores without significant marketing efforts and were intended to compete with Future Group's Koryo and Tata-owned Croma's private label products.
Currently, Reliance continues to use the Reconnect brand for retail accessories. The company had acquired the license for the BPL and Kelvinator brands a few years ago and introduced a limited range of TVs, refrigerators and washing machines without gaining sufficient market share. Local companies such as Dixon, Mirk and PG Electroplast were responsible for the design and manufacturing of these products, while others were imported from China and Indonesia, being produced by TCL, Midea and Toshiba.
“Reliance management felt it needed its own brand, where it could tightly control product design and manufacturing, to win in this market,” said an official.
During the earnings call, Taluja noted that the FMCG business, which has completed its first full year of operations, is “growing well.” He highlighted that brands like Campa in the beverages segment and Independence in the staples segment “had a very strong foothold and received very strong customer acceptance.” Taluja also said that the company is “building the supply chain for these products so that we have a local supply chain in different parts of the country and we are looking at scaling up these businesses.”



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