RS Sodhi joining the behemoth Reliance has raised expectations. The former GCMMF (Amul) MD will join Reliance Retail Ventures (RRVL) to reportedly help the Isha Ambani-led business grow in India’s grocery space with a focus on fruits and vegetables.
While that is the official version, the joining of Sodhi has raised expectations from Reliance in the dairy space, given his credentials as the head of Amul.
Reliance entered dairy in 2007 and sold the business to Heritage Foods. In the dairy market dominated by cooperatives and strong regional brands, can Reliance establish dominance?
Seamless integration of procurement to market
Reliance retail has been very aggressive with ambitious growth plans. Mr Sodhi will certainly contribute to fuel that growth using his four decades of experience. As far as the dairy sector is concerned, success of private and cooperative dairies is due to seamless integration of procurement to market, Reliance still has a long way to go in that space.
Also, Reliance Retail’s core activity is to source products and offer consumers at a competitive price.
– Dr. K Rathnam, CEO, Milky Mist Dairy
Reliance will get a ‘Taste’ of Sodhi in consumer products
He has led one of the largest consumer brands, in India, very well across many years. Now, Reliance will get a ‘Taste’ of him and his experience in consumer products. A person of his background deserves a lot of respect and he will contribute positively in his new role. Certainly, a new chapter in his ‘diary’ of achievements!
– Jagdeep Kapoor, Founder, Chairman and Managing Director, Samsika Marketing Consultants
Reliance may enter dairy organically or through an acquisition
As India’s largest retailer, Reliance has huge ambitions for its retail arm, and there are various aspects to it. They already have over 16,500 stores, across various formats – grocery, electronics, fashion plus the other formats, Jiomart, Ajio, and online including Netmeds. Reliance already has a very large consumer play in retail and given those ambitions they are actually getting into the next stage.
A year back they acquired Campa Cola, a legacy brand in beverages. Similarly, in consumer durables, they acquired legacy brands BPL, Kelvinator as part of this strategy. They are putting all the building blocks.
Getting someone like former Amul head RS Sodhi, is another step in this direction. His experience will be invaluable as they over time broadbase their play in beverages to foray into dairy. In the refreshment beverage space, they have already launched Campa Cola to go head on head with Pepsi and Coke.
Last year they launched their own consumer goods brand, ‘Independence’, with a whole range from edible oils, and commodities. Mr. Sodhi’s deep experience will be invaluable having been with Amul for the last 30 years. They would use his deep expertise and knowledge in building distribution and running the world’s largest milk cooperative.
The dairy business is a very competitive space with Amul being dominant, and other key player like Danone, Mother Dairy, Britannia and Parag. In time Reliance may enter the category either organically or through an acquisition of an existing player. We will need to watch their next move closely.
– Lloyd Mathias, Business Strategist and Angel Investor
Brings vast experience dealing with farmers and cooperatives
From what I have read Mr Sodhi is joining as advisor in the fresh produce vertical, not dairy. He brings vast experience dealing with farmers and cooperatives. That will be great to tap into for a retail major.
I don’t think Mr Sodhi will act against the interest of Amul even if he advises the company on dairy.
– Ambi Parameswaran, Brand Coach, Brand Strategist, and Founder Brand-Building.com
With the right consumer insight and working regionally on setting up distribution it can be done.
– Devndra Chawla, MD & CEO, GreenCell Mobility (has extensively worked with FMCG brands like Coca Cola and retailers like Walmart and Nature’s Basket)
