Reliance Consumer Products Establishes Maiden Food Park in Andhra Pradesh with ₹768 Crore Investment

Reliance Consumer Products Limited (RCPL), the fast-moving consumer goods division of Reliance Industries, has secured approval to establish its first integrated food park in Andhra Pradesh with an investment of ₹768 crore. This flagship facility represents the initial phase of an ambitious ₹40,000 crore expansion plan to develop integrated food parks across India over the next three years.

Strategic Location and Infrastructure Development

The food park will be established in Brahmanapalli village within the Orvakal area of Kurnool district, offering strategic connectivity to major South Indian markets. The location provides convenient access, positioned approximately three hours from Hyderabad and five hours from Bengaluru airport by road.

The Andhra Pradesh State Investment Promotion Committee (SIPC) has approved the allocation of 120 acres for the food park development. The facility will be strategically positioned adjacent to a planned RCPL beverages manufacturing unit, which has been allocated an additional 80 acres, creating a comprehensive food and beverages production hub.

Comprehensive Manufacturing Portfolio

The food park will house diverse manufacturing capabilities across multiple consumer categories. The facility will produce chocolates and confectionery items, various snack products, instant noodles, wheat flour (atta), rice products, and spice blends, catering to diverse consumer preferences across different market segments.

This diversified production approach aligns with RCPL's strategy to establish a strong presence across key FMCG categories while leveraging economies of scale and operational synergies within a single integrated facility.

Phased Development and Production Capacity

The project follows a strategic two-phase development approach designed to optimize capital deployment and market responsiveness. The first phase will establish manufacturing capacity for 23,000 tonnes per annum (TPA) of spices, 3,800 TPA of snacks, and 14,400 TPA of noodles and pasta products.

The second phase will significantly expand production capabilities with 32,900 TPA of confectionery and chocolates, 36,500 TPA of rice products, and an impressive 120,000 TPA of wheat flour (atta). This phased approach allows for market validation and operational optimization before full-scale capacity deployment.

Employment Generation and Economic Impact

The food park is projected to generate employment opportunities for approximately 500 individuals across various skill levels and functional areas. These positions will span manufacturing operations, quality control, logistics, administration, and technical support roles, providing diverse career opportunities for the local workforce.

The employment creation extends beyond direct hiring to include indirect economic benefits for local suppliers, service providers, transportation companies, and supporting businesses, generating a multiplier effect for the regional economy.

Competitive Positioning Against Maharashtra

While RCPL recently signed a Memorandum of Understanding with the Maharashtra government to establish an integrated food and beverages facility in Nagpur, Andhra Pradesh has gained the first-mover advantage through expedited approvals and land allocation processes.

The state's proactive approach in facilitating investment approvals has positioned the Kurnool facility as RCPL's inaugural food park, demonstrating the importance of efficient regulatory processes in attracting major industrial investments.

The project awaits final state cabinet approval, expected within the next two weeks, which would formally authorize commencement of construction activities.

Integration with Beverages Manufacturing Strategy

The food park's proximity to the planned beverages manufacturing facility creates operational synergies and supply chain efficiencies. This integrated approach enables shared infrastructure utilization, including utilities, logistics networks, and administrative functions, optimizing overall operational costs.

The combined food and beverages hub positions RCPL to serve as a comprehensive supplier to retail networks while leveraging Reliance's extensive distribution infrastructure across India.

Ambitious Revenue Targets and Market Leadership Goals

The food park investment forms part of RCPL's broader strategic vision outlined by Reliance Retail Ventures Executive Director Isha Ambani during Reliance Industries' Annual General Meeting. The company aims to become India's largest consumer goods firm and achieve ₹1 lakh crore in annual revenue within five years.

This ambitious target reflects confidence in India's growing consumer market and RCPL's ability to capture significant market share across multiple FMCG categories through strategic investments in manufacturing capacity and distribution capabilities.

National Expansion Strategy

The Andhra Pradesh facility represents the foundation of RCPL's comprehensive national expansion strategy. The ₹40,000 crore investment plan over three years indicates the company's commitment to establishing multiple integrated food parks across different regions, ensuring optimal market coverage and supply chain efficiency.

This multi-location approach will enable RCPL to serve regional preferences while maintaining cost-effective logistics and reducing transportation expenses to key markets.

The integrated food park model combines manufacturing efficiency with distribution optimization, positioning RCPL to compete effectively with established FMCG companies while leveraging Reliance's retail network and consumer insights.

As India's consumer goods market continues expanding, driven by rising disposable incomes and changing consumption patterns, RCPL's significant capacity investments position the company to capture emerging opportunities across diverse product categories.

The success of this inaugural food park will likely serve as a template for subsequent facilities, demonstrating RCPL's operational capabilities and market execution strategy to stakeholders and potential partners.

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