Reliance Consumer buys sachet shampoo pioneer Velvette

Reliance Consumer Products Limited (RCPL) has acquired Velvet, a Chennai-based personal care brand known for pioneering sachet packaging. This acquisition, RCPL’s first in Tamil Nadu, grants the company a perpetual licence for the Velvet brand. The Federal spoke to Ketan Mody, CEO of RCPL, and Arjun Rajkumar, CEO of Velvet, about how this deal will reshape the product’s future.

Reviving heritage brands

RCPL said it was established with a mission to provide global quality products at affordable prices while reviving Indian heritage brands. Velvet is one such brand that RCPL aims to restore to its past prominence.

“We thought we could work towards reviving Velvet to its past glory,” said Ketan Mody. The acquisition is not limited to shampoos and sachets; RCPL plans to introduce a full personal care range under the Velvet brand.

While Velvet has been a Tamil Nadu icon, RCPL is set to take it pan-India. The company will introduce new product lines and packaging formats, ensuring a diverse range beyond sachets.

“We are not just focusing on one form of packaging. We will launch an entire personal care range across India,” Mody confirmed.

Rising rural demand

Research reports indicate that rural demand is rising, whereas urban areas are witnessing sluggish growth. RCPL sees an opportunity in providing quality products at affordable prices, targeting a wider consumer base.

“The Finance Minister’s recent budget is expected to boost consumption, increasing demand for personal care products,” Mody added.

The sachet market

Concerns over shrinking sachet sizes due to inflation and cost-cutting measures were addressed by RCPL. The company said its focus remains on honest pricing without compromising quality. “We don’t believe in cutting corners, especially in quality. Honest pricing is our core principle,” Mody said.

For Velvet’s leadership, this acquisition marks a return to prominence in the market. Arjun Rajkumar, CEO of Velvet, said the move helps the brand reconnect with Indian consumers.

“Velvet pioneered the sachet revolution. We felt this was the right move to bring it back into the minds and hearts of consumers,” said Rajkumar.

Future of product line

Velvet’s last major production was during COVID, when it introduced sanitizers alongside its existing shampoo line. Now, under RCPL, Velvet will expand into body wash, soaps, talcum powder, and herbal hair products.

“Velvet will not be limited to shampoos. It will enter a wide variety of personal care categories,” Rajkumar confirmed.

With RCPL’s backing, Velvet is set for a nationwide expansion, entering new product categories.

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