Reliance Consumer To Acquire 50% Stake In Sosyo Hajoori Beverages

Reliance Consumer Products Ltd. will acquire 50% equity stake in Gujarat-based soft drinks maker Sosyo Hajoori Beverages Pvt.

The Hajoori family, who are the existing promoters, will continue to own the remaining stake in the 100-year-old beverage company.

"With this joint venture, Reliance will further strengthen its portfolio in the beverage segment having already acquired the iconic brand Campa,” the Mukesh Ambani-led conglomerate said in a stock exchange filing on Tuesday.

"In addition, Sosyo’s expertise in formulations can be leveraged to develop unique value propositions for the product portfolio and consumers."

Operated by Abbas Hajoori and his son Aliasgar Hajoori, Sosyo Hajoori Beverages is among the leading players in the domestic soft drinks market.

The company has a strong presence in Gujarat with brands such as Sosyo, Kashmira, Lemee, Ginlim, Runner, Opener, Hajoori Soda and S’eau, having launched over 100 flavours.

Its flagship fizzy fruit juice brand Sosyo was invented in 1923 amid the country's struggle for freedom, according to its website.

Sosya was a 'desi' option to Vimto, a similar drink that was imported from the U.K. and marketed in India by the Hajoori family. It also competed against American Colas. The company boasts over 29% share of this category in Gujarat with sales of around 20 lakh crates annually.

The investment in Sosyo will "help us take forward our vision of empowering local heritage brands and presenting them with new growth opportunities", Isha Ambani, executive director, Reliance Retail Ventures Ltd. said in the release.

“We welcome the desi power of the century-old Sosyo’s heritage beverage brands to our consumer brand portfolio and are confident that our knowhow, consumer insights and retail distribution strengths will help accelerate the growth momentum of Sosyo."

Sosyo has 18 manufacturing units in the country and exports to overseas markets like U.K., U.S., U.A.E, South Africa, Australia, among others.

According to Abbas Hajoori, chairman, Sosyo Hajoori Beverages Pvt., their partnership with Reliance will help Sosyo rapidly scale up its reach. "Combining our relative strengths, we would make the unique tasting beverage products of Sosyo accessible to all the consumers in India."

Reliance Industries has been on a buying spree to fortify its brand portfolio in the $110 billion fast-moving consumer goods sector. It launched Independence, its new brand for consumer staples.

In August last year, the Mumbai-based conglomerate bought Campa Cola, another regional soft drinks brand, in a bid to gain market share from incumbents like PepsiCo and Coca-Cola Co.

Other than its 2,460 grocery stores, including Reliance Fresh and Reliance Smart supermarkets and hypermarkets, the company is creating a distinct and dedicated retail distribution network for its FMCG portfolio by tapping the traditional kirana stores.