In a market long dominated by Coca-Cola and Pepsi, Reliance has adopted a shrewd, partnership-driven approach to scale its soft drink brand, Campa, without engaging in a direct advertising war. Instead of splurging on traditional marketing battles, Reliance has strategically leveraged partnerships for manufacturing, distribution, and market penetration—both in India and internationally.
An Asset-Light Model in India
Back home, Reliance has adopted a similar strategy of focusing on partnerships rather than a capital-intensive expansion. While Reliance controls wholesale distribution through its vast retail network, it has outsourced bottling operations to various regional players across the country. This asset-light model ensures cost efficiency and speed in scaling operations.
Several key partnerships include:
- Sri Lankan cricket legend Muttaiah Muralitharan’s bottling plant in Karnataka.
- Assam-based Jericho Group’s plant in Guwahati.
- Yash Raj Beverages and Agro Products’ facility in Lucknow.
- Pure Drinks’ bottling plants in Mumbai and Delhi.
These partnerships have allowed Campa to quickly ramp up production and distribution, gaining over 10% market share in multiple states within a short period.
The UAE Expansion: A Partnership-Driven Approach
One of the most notable examples of this strategy is Campa’s expansion into the UAE. Unlike traditional beverage giants that set up their own extensive distribution networks, Reliance has outsourced the heavy lifting to Abu Dhabi-based Agthia Group. This move allows Campa to leverage Agthia’s deep-rooted distribution channels and expertise in the region, particularly among the Indian diaspora.
Agthia, a company majority-owned by the UAE government, has acquired the distribution rights for Campa in the region. By leveraging its existing network, the company has already positioned Campa on the UAE’s largest domestic e-commerce platform, Noon, and its quick commerce arm. This ensures a rapid and cost-effective market entry without Reliance having to build its infrastructure from scratch.
IPL Sponsorship: A Strategic Visibility Play
While Reliance has avoided a direct advertising war, it has made a strategic move by becoming a co-sponsor of the upcoming Indian Premier League (IPL) across both TV and OTT platforms. This association provides immense visibility without the need for a massive standalone campaign. Given IPL’s massive audience, the sponsorship could significantly boost Campa’s brand recall and market penetration.
Reliance’s strategy with Campa showcases how a brand can scale rapidly by leveraging local expertise and existing networks rather than relying on expensive ad spends. By smartly deploying partnerships, maintaining an asset-light model, and securing high-impact sponsorships like the IPL, Reliance has positioned Campa as a formidable challenger in the soft drink market—without engaging in a direct battle with the cola giants.
(With inputs from Jayant Mundra’s post)
