The Indian soft drink market has long been dominated by the cola giants Coca-Cola and Pepsi, leaving little room for competition. However, Reliance Industries, which is owned by the richest man in India Mukesh Ambani, is shaking up the soft drink industry with their bold move to relaunch the iconic Campa Cola, which was first launched 50 years ago. They have also partnered with Sosyo Hajoori Beverages, in which Ambani’s daughter has a stake of over 50 percent. With plans to inspire a new generation of consumers and embrace India’s most iconic brands, Reliance is ready to take on the industry’s heavyweights. But can they really disrupt the cola oligopoly and gain a significant market share? The world awaits Reliance’s next move as the battle for the Indian soft drink market heats up.

The Indian soft drink market has been dominated by Coca-Cola and Pepsi since the 1990s when they first entered the market. The market dominance of these cola giants has been a challenge for other companies attempting to enter the market. However, Reliance Industries is now poised to challenge the status quo with its acquisition of Campa Cola. With Ambani’s ambitious plans to position Reliance as a major player in the Indian soft drink market, the longstanding dominance of multinational corporations is likely to be disrupted. The developments at Campa Cola are the focus of attention within the industry for investors and consumers as the Indian soft drink market enters a new phase of competition and innovation.

Reliance’s Strategies to Take Down the Giants

Reliance aims to undertake several strategies to bolster its position within the market. Its first move has been lowering their price compared to Coca-Cola and Pepsi in order to attract price-sensitive consumers looking for a cheaper alternative for existing products. Reliance is betting that many consumers will switch to its cheaper products, increasing the demand for its brand. In a market like India, where the majority of the population is price-sensitive, there is a high chance that they will choose a cheaper alternative even if it means sacrificing some quality. In addition, as more consumers look for products from Campa Cola, its brand recognition may improve, helping it to gain a foothold in the market.

Reliance is not only cutting prices to beat the cola giants. According to India TV, Reliance has also formed a partnership between Campa Cola and Sosyo Hajoori Beverages, a company that specializes in carbonated soft drinks and non-carbonated fruit-flavored drinks. This will allow the expansion of the company’s products and appeal to non-cola drinkers in India. This change is in response to the growing demand for non-carbonated drinks in India, which, according to Statista, is expected to increase annually by 1.71 percent from 2023 to 2027.

The shift in consumer preferences toward healthier and more natural alternatives offers a significant opportunity for Reliance to expand its offerings and appeal to a wider audience. By tapping into the growing market for non-carbonated drinks, Reliance can potentially gain a competitive advantage over its rivals and differentiate itself from the cola giants. This move could help Reliance establish itself as a serious player in the non-carbonated drink segment and secure consumers that are not interested in carbonated soft drinks. This could potentially lead to an increase in brand recognition and overall sales, including for its carbonated products.

Reliance has recently appointed Thirumulai Krishnakumar, a former Coca-Cola India chairman, to its leadership team in the hopes of exploiting his insightful knowledge of the Indian beverage market. His experience with the Indian market and consumer preferences will be a crucial addition to Reliance, especially as the company looks to compete with established players like Coca-Cola and Pepsi. On Krishnakumar’s appointment to Reliance’s leadership team, Professor Tony Garrett (Department of Business Administration) states, “With close to twenty years of working experience with Coca-Cola at the most senior positions, he is in a perfect spot to take on the challenges for Reliance to secure its position in the Indian market.” Krishnakumar’s addition would also guide Reliance’s strategic decisions, paving the way for it to gain a competitive advantage in the Indian beverage market.

Possible Drawbacks

However, even with their efforts, Reliance may face even more significant challenges. Coca-Cola and Pepsi have strong brand recognition and welldeveloped market strategies for India based on their decades of experience in marketing within the country. In contrast, Reliance does not have the same level of recognition; thus, it will need to find a way to spread its name to survive. In particular, there is a need for Reliance to find a distinct method to appeal to the younger generation, who are potentially the main consumers within the Indian beverage market. As Professor Garrett argues, “Younger consumers may like the fact that Coke and Pepsi are an international brand and could be considered ‘cool’ [or trendy]."

To overcome these challenges, Reliance needs to develop a unique value proposition and find ways to further differentiate itself from its competitors. One way to do so is to focus on local flavors and preferences, as well as to tailor its products to the Indian market. Additionally, the company may need to invest in building a robust distribution network to ensure that its products are readily available to consumers across the country. Reliance must also continue to innovate and develop new products that follow emerging trends. Professor Garrett suggests that “this brand could arguably fit into the needs of those consumers who want to buy a product that they perceive is more local.” Hence, advertising the brand’s Indian heritage and emphasizing its pride in being an Indian company may play an important role in attracting patriotic individuals and spreading its brand name throughout the country.

Ambani’s Reliance has taken significant steps to challenge Coca-Cola and Pepsi’s dominance in the Indian beverage market, signaling Ambani’s ambition and determination to diversify the market share and break the cola oligopoly. These movements are expected to shake up the industry and create more competition. As Reliance continues to disrupt the market, the future of the Indian beverage industry remains uncertain, but one thing is clear — Reliance’s efforts will continue to be closely watched by industry experts and consumers alike.