Mukesh Ambani eyes a market worth Rs 31,000 crore, which could boost the fortunes of big companies

India's leading pet food company Reliance Consumer Products (RCPL) is preparing to enter India's rapidly growing pet food market. 

People familiar with the matter said the company will offer its products at half the price of major companies like Nestle, Mars, Godrej Consumer Products, and Emami. 

An official said Reliance has informed distributors and trade channels that it is pricing its brand Veggies 20-50 percent lower than existing players, similar to its strategy in the cola sector.

Focus on these cities

Reliance Retail's consumer products arm, Campa Cola, is using its previous entry strategy to challenge incumbents in the pet care sector, which has grown due to rising pet ownership and a wave of premiumization. 

According to the official cited above, pet foods will be made available in general merchandise stores and semi-urban stores in tier-2 centers. However, no official statement has yet been issued by RCPL. Notably, the Indian pet food market is currently estimated to be worth over ₹31,000 crore.

Goods will be available across the country by 2027

The company sells its brands across all categories, including cold drinks, juices, energy drinks, water, and staples, at prices 20-40 percent lower than existing competitors, leading many competitors to either intensify consumer promotions, offer higher business margins, or introduce smaller, lower-priced packs. However, none of its brands are yet available nationally.

T Krishnakumar, director of Reliance's consumer products division, told ET in an interview in June that the company wants to "ensure that its consumer portfolio is available nationally by March 2027."

Krishnakumar, the former head of Coca-Cola, said RCPL is working on a strategy to focus on 600 million common consumers and work closely with them by offering "margins on today's cost to neighbourhood stores."

31 thousand crore market

A recent report by RedSeer Strategy Consultants stated that India's pet care market is projected to double to $7 billion by 2028 from the current $3.5 billion. 

The report states that the number of pets in Indian households will increase from 26 million in 2019 to 32 million in 2024. The report states that a key trend driving the market is premiumization and subscription services that offer delivery of food, beauty products, and healthcare services. 

Major brands in the pet care category include Pedigree, Purina, Supertails, and Royal Canin, while prominent startups include Heads Up for Tails and Drools.