BPL and Kelvinator goods will be manufactured by Reliance Retail.

Image Credit: The Flame of Truth

The corporation will be able to enter the electrical space as a result of the move.

The licence to manufacture and market consumer durable products under the BPL and Kelvinator brands has been bought by Reliance Retail. Reliance Retail will be able to enter the electrical market as a result of the action.

According to insiders, the contract with BPL will be announced soon, while the deal with Kelvinator is already in the works.

Bringing old brands back to life

BPL's product range, which includes air conditioners, refrigerators, washing machines, and television sets, as well as light bulbs and fans, will be manufactured and sold by Reliance. Reliance has implemented an aggressive marketing and distribution strategy that has the potential to revitalise classic Indian brands. BPL items will be accessible both in-store and online at Reliance.

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They'll also be sold in local electronics stores, as well as retail and internet portals.

According to the sources, the objective is to unveil new products and large ads for the festival season.

Reliance Retail did not respond to a request for comment.

Reliance purchasing the manufacturing rights for these brands, according to Arvind Singhal, Founder, Technopak, is a beneficial move because it will increase the company's reach and maybe strengthen its private label market.

For the elder generation, these brands have a high recall value. But, in order for the brands to succeed, Reliance will have to modernise them, he said.

E-commerce

Despite the fact that the Covid-related restrictions had an impact on Reliance Retail's store operations, the company's net profit increased by 123 per cent to Rs.962 crore in the first quarter ended June 30. Its operating revenue increased by 22% to Rs 38,547 crore.

The consumer electronics division of Reliance Retail has been expanding. The company stated it has increased digital commerce to meet client expectations when releasing its first-quarter results; this sector rose 18.8%.

Revenue was up 1.8x year over year, with the online platform's highest-ever quarterly revenues.

Fashion & Lifestyle and Consumer Electronics boosted the retail company's sector EBITDA to 2,000 crores, up 80%.

It's also concentrating on growing its digital commerce and merchant alliances, which have helped offset some of the business lost as a result of shop closures.

In the first quarter, these streams accounted for 20% of total retail sales.

(Source: Business Line)