Why Reliance Industries spent Rs. 22 Crore on a Dead Brand Campa Cola? Trending Now!

Reliance Industries Limited (RIL) is ready to kick-start its FMCG business and the first step to do so was to buy dead brand Campa Cola for Rs. 22 crore from Delhi-based Pure Drinks Group, which is cheaper than most RIL acquisitions of the past. However, why the company bought? It will not be a cakewalk surely!

History: In the year 1977, Campa was born when Coca-Cola left India due to our laws. It was a copy of coke and was quickly adopted in the market. In the Year 1993, foreign players, Coca-Cola and Pepsi reentered India and began advertising aggressively which adversely hampered the growth of most homegrown coke alternatives that includes Campa Cola. In the year 1999, Campa Cola shut down its operations. But, it still has the formula for its soda concentrate. In addition, this could be great for RIL's FMCG Business. Entering the cola market is not easy, hence RIL is buying a five-decade-old brand that "is similar in taste to Coke", ruled the market for 15 years besides "it has some mindshare and brand recall".

Some other factors include, RIL has the resources and cash to burn, so was it can sell this soft drink Campa Cola for cheap, nostalgic sweet spot, huge distribution network of the RIL helps in advertisement of the product easily.

Mostly Campa Cola is an Indian Brand, the current enthusiasm around homegrown brands could spell trouble for Pepsi and Coca-Cola.,

Recently, Isha Ambani, director at Reliance Retail Ventures, announced at the company's annual general meeting, "The objective of this business is to develop and deliver high quality, affordable products, which solve every Indian's daily needs." 

So who will win Reliance Industries or the foreign giants Pepsi and Cola?

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