Reliance Consumer revives Velvette, targets HUL and Dabur in personal care
NEW DELHI: After shaking up India’s aerated drinks market, Reliance Consumer Products Ltd (RCPL) is now entering the personal care space and joining Hindustan Unilever Ltd (HUL) and Dabur Ltd. It competes with well-established players such as.
The company on Thursday relaunched Velvette, a once-popular Tamil Nadu-based brand, and signed actress Krithi Shetty as an ambassador.
To celebrate the launch, the company held a grand dealer meeting in Chennai on the same day. RCPL could use Velvette as an umbrella brand for its personal care segment and leverage its heritage in the southern market, people familiar with the plans said.
“In line with RCPL’s vision to promote India’s heritage brands, the hugely popular Velvette is now the flagship brand in the company’s personal care portfolio,” the company said in a statement.
The relaunch of Velvette is in line with RCPL’s broader objective to scale and achieve success in its FMCG business. ₹1 trillion revenue in five years.
Velvette will initially be available in 1,400-1,500 stores in Tamil Nadu and plans to expand to southern markets where the brand has stronger recall. RCPL may also expand Velvette into other categories, such as men’s grooming.
An old brand returns
Velvette was founded in the 1980s by India’s original “sachet king” CK Rajkumar and became a household name thanks to its affordable shampoo sachets. The brand then began to fade due to competition from larger players.
RCPL’s revival aims to combine nostalgia with modern distribution and marketing and position Velvette as the flagship in the personal care portfolio. The product range now includes soaps, shampoos, conditioners, shower gels, body lotions and talcum powders.
Pricing and market
Velvette is priced for mass market consumers. Price of 8 ml shampoo sachet ₹While 2, 185 ml and 340 ml bottles are priced ₹150 and ₹290 respectively.
HUL’s Sunsilk has a similar price range, but also offers: ₹1 sachet. While Dabur’s Vatika shampoos are priced lower than Velvette, the soaps (40g) ₹10; 100g ₹35) Comparable to Godrej’s Cinthol.
According to Deloitte India, India’s beauty and personal care market was valued at $28 billion by 2024 and is projected to grow 11.5% annually until 2030. Analysts note that personal care is a more challenging category than beverages or food, given high brand loyalty and intense competition.
Velvette will compete with established players like HUL, ITC, Godrej Consumer Products and RHS Global and emerging players like Mamaearth and Plum.
“Personal care is a tougher category for new entrants; we will be watching given that it is Reliance. Even ITC has seen good success in food, but its success in personal care has been measured (except deos). Personal care has much higher customer loyalty unlike food,” said Abneesh Roy, managing director of Nuvama Institutional Equities.
“But Velvette is an old brand and has brand recall in some southern markets. Reliance can scale it through distribution and marketing. But unlike Campa, it will be harder to take it to India,” he said.
Others said smaller brands may feel the pinch with the brand’s initial launch.
“They will eat local players first; although they can build brands in every category, they are unlikely to be market leaders in any category,” said another trade marketing manager, speaking on condition of anonymity.
RCPL reported its total FMCG revenues as follows: ₹11,450 crore for FY25, but personal care distribution remains limited. In comparison, HUL’s personal care segment, which includes soaps, shampoos, deodorants and body washes, reported revenue as follows: ₹9,168 crore in the last financial year.
