In India, Reliance Retail's Private Labels Spook Global Consumer Goods Makers

Products like Snac tac noodles and Yeah! colas are Reliance's private label brands - and billionaire Mr Ambani's not-so-secret weapons as he sets his sights on dominating the grocery market

Inside supermarkets of Reliance Retail, run by India's richest man, Mukesh Ambani, little-known food and home cleaning brands take pride of place on shelves alongside global labels owned by giants Nestle, Unilever and Coca-Cola. Products like Snac tac noodles and Yeah! colas are Reliance's private label brands - and billionaire Mr Ambani's not-so-secret weapons as he sets his sights on dominating a grocery market that's already worth a cool $608 billion and set to grow more than 20 per cent by 2024, according to Forrester Research. These are not just a cheap and cheerful option for urban shoppers in Reliance's own expanding store network. This is Mr Ambani's bet on pitching brands that are basic, yet still aspirational at 'kiranas' - traditional mom-and-pop stores which serve roughly 80 per cent of the retail market in world's second-most populous nation. Already India's biggest retailer, even as a $3.4 billion deal to buy no 2 player Future Retail awaits clearance, Reliance has "immense focus" on private labels, said an industry executive familiar with its strategy. That focus has already made some consumer goods firms in India uneasy, sources say. Reliance plans to keep expanding and promoting its private labels - even in non-food segments - via its own supermarkets and kiranas, the executive said, declining to be identified, like most of the people Reuters interviewed for this story, because of a lack of authorisation to speak with media."It's a worthwhile and high-margin (play)," the person said.