Reliance Industries Chairman Mukesh Ambani is actively expanding his business and implementing a new strategy that could trigger a price war, ranging from soft drinks to ice cream. This strategy aims to offer food and beverage products at very low prices, posing a serious challenge to large companies that previously held dominant market positions.
Previously, Mukesh Ambani acquired the 50-year-old non-alcoholic beverage brand Campa Cola and began selling its products at reduced prices. Following this, he created a stir in the water markets and is now entering the ice cream market, offering products starting at a price of 10 rupees.
The strategy, which targets middle-class consumers, has proven extremely successful. In 2023, Mukesh Ambani launched शीतल पेय and bottled water under the Campa brand, setting the initial price at just 10 rupees. The company has now introduced Bombay Creamery Ice Cream, also available for 10 rupees.
Reliance's recent entry into the Indian ice cream market is part of this strategy. Reliance Consumer Products entered the segment with Bombay Creamery, setting the starting price for ice cream in cups, cones, and bars at 10 rupees. This has caused unrest among existing market giants, and price competition is expected to begin.
In western India, where Bombay Creamery Ice Cream by Mukesh Ambani was launched, a serious challenge has emerged for market leaders such as Amul, Mother Dairy, Quality Walls, and Vadilal. The impact of this launch on these companies' stocks is already visible; for instance, on the last working day, Wednesday, Quality Walls shares sharply dropped by approximately 3 percent after the announcement of Ambani's ice cream launch.
The deal struck by Reliance Industries Chairman Mukesh Ambani to enter the cola market forced many companies to reconsider their price ranges. By acquiring the famous Campa Cola brand, popular in the 70s, Reliance presented it in a new form with three flavors: orange, lemon, and cola. A 200 ml bottle was priced at 10 rupees. This initiated a price war in the cola market, prompting other manufacturers to lower their prices. For the financial year 26, Campa achieved a net income exceeding 4,700 crore rupees.
After acquiring Campa Cola in 2022 and presenting it in a new, more affordable format, Mukesh Ambani applied the same strategy to bottled water, which also proved successful. The company launched Campa Sure packaged drinking water, for which Bollywood 'king' Amitabh Bachchan was chosen as the ambassador. This brand has become a major player in the bottled water market. A half-liter bottle of water was also priced at 10 rupees, while the two-liter option was priced at 20 rupees.