Reliance Acquires Manna Foods for ₹156 Crore in Health Push

Introduction to the Acquisition

Reliance Consumer Products Ltd (RCPL), the fast-moving consumer goods arm of Reliance Industries Ltd, has acquired a 100% stake in Southern Health Foods Private Ltd (SHFPL). The all-cash transaction, valued at ₹156.42 crore, was completed on February 9, 2026. This deal makes SHFPL, the owner of the popular health food brand 'Manna', a wholly-owned subsidiary of RCPL, significantly strengthening Reliance's position in the health and wellness food sector.

Details of the Transaction

The acquisition provides RCPL complete control over SHFPL, a company incorporated in April 2012. The deal did not require any specific governmental or regulatory approvals and was confirmed not to be a related-party transaction. This move is a key part of RCPL's strategy to build a formidable presence in the Indian FMCG market through both organic growth and strategic acquisitions. The integration of Manna into RCPL's portfolio is expected to create synergies by leveraging Reliance's extensive operational capabilities.

Profile of Southern Health Foods and Manna

For over two decades, Southern Health Foods has established its Manna brand as a trusted name in health foods, particularly in Tamil Nadu and adjacent southern states. The company's product line is diverse, covering millet-based staples, multigrain mixes, breakfast cereals, health drinks, and baby food. Financially, SHFPL reported a turnover of ₹109.40 crore in FY25, following revenues of ₹127.37 crore in FY24 and ₹126.65 crore in FY23. This established market presence and product range make it a valuable addition to RCPL's portfolio.

Strategic Rationale for Reliance

The acquisition of Manna aligns directly with RCPL's ambition to expand its food and staples business. Manna joins a growing list of brands under RCPL, including Udhaiyam, Independence, and SiL. The primary driver for this deal is the rapidly growing consumer demand for healthier, nutrition-focused food options, especially in the millet-based category. T. Krishnakumar, Director at RCPL, stated that the addition of Manna helps the company serve consumers with nutritious food choices. He emphasized that Reliance's strong distribution network, research and development, and supply chain infrastructure will be instrumental in transforming Manna from a regional player into a national household name.

Key Deal Information

Market Context and Competitive Landscape

RCPL is entering a dynamic and competitive health food market. The Indian healthy food market is on a significant growth trajectory, projected to expand substantially as consumer awareness about wellness increases. This acquisition positions RCPL to compete more effectively against established FMCG giants like Hindustan Unilever, ITC, Tata Consumer Products, and Nestle, all of which have a strong presence in the health and wellness space. The move is part of a broader trend where large conglomerates are acquiring niche health brands to capture evolving consumer preferences.

RCPL's Broader FMCG Ambitions

This acquisition is not an isolated event but a component of RCPL's aggressive expansion strategy. The company has been actively acquiring brands across various categories to build a diversified portfolio. With stated goals of achieving ₹1 trillion in revenue within five years and expanding globally, RCPL is positioning itself to become a dominant force in the Indian FMCG industry. The focus on health foods with the Manna acquisition underscores its intent to build a meaningful presence in high-growth segments.

Challenges and Future Outlook

While the strategic fit is clear, RCPL faces challenges. The health food market is increasingly crowded, and successfully scaling a regional brand like Manna to a national level requires significant investment and precise execution. Some analysts have noted that Manna's diverse product range could present integration complexities. However, Reliance's proven ability to leverage its scale, financial muscle, and extensive retail and distribution network provides a strong foundation for success. The company's plan is to make Manna's nutritious offerings accessible and affordable to a wider audience across India, thereby expanding the overall market for health-focused foods.

Conclusion

The acquisition of Southern Health Foods and its Manna brand is a calculated step by Reliance Consumer Products to deepen its engagement with the Indian consumer. By targeting the high-growth health and wellness segment, RCPL is not only expanding its product portfolio but also aligning with long-term consumer trends. The successful integration and national expansion of Manna will be a key indicator of RCPL's ability to challenge established players and achieve its ambitious goals in the FMCG sector.