Whenever Reliance Industries makes a move in a new sector, it is proven to give the established players a real hard time. Recently, they have disrupted the soft drink vertical with Campa cola, They are now looking to disrupt the export market with special focus on Africa and West Asia.
They are making their first entrance into the export market with Campa Cola, which entails taking on the two established titans of the industry, Coca-Cola and PepsiCo, along with other major competitors, head-on with cheap pricing strategies and alluring trade margins. The export scenario appears to be quite lucrative.
According to sources, Bahraini retail establishments have already received the initial supplies from India. According to a source, the business now intends to expand into Oman and Saudi Arabia in stages with the goal of progressively improving its availability throughout the area prior to the summer.
As reports indicate that boycotts of American goods, sparked by American backing for Israel in the Gaza crisis, have negatively impacted Coca-Cola and PepsiCo’s sales in the region, Reliance aims to capitalize on the surge of anti-American feeling in West Asia. Alternative brands are becoming more and more popular among local customers, which benefits Campa Cola.
Additionally, Reliance is looking at joint ventures to set up regional bottling plants in important markets like Saudi Arabia and the United Arab Emirates. The business would rely on imports from India for the time being. Because of the geographic advantage, a local bottling base could help Campa Cola enter Africa.
At the 2023 annual general meeting (AGM), Isha Ambani, the CEO of Reliance’s FMCG and retail operations, revealed ambitions to increase Campa Cola’s presence in foreign markets.
With Indian brands already established in Africa, it would be interesting to see how Reliance fares with the two established giants. Coca-Cola, as of now dominates the African market with some reports suggesting that they have a 50 percent hold on the soft drink market in South Africa.
With soft drink, comes soft power, Indian companies should try aggressively to enter new frontiers which will not only open a growth path but also will influence the region’s sentiment towards India in general. With serials already being seen in Africa, the trajectory of Indian soft power in Africa seems upward.
