Introduction
With both Reliance and HUL bringing affordable and innovative products to the sports beverages segment, the market is poised for rapid transformation. After shaking up India’s carbonated soft drinks market with the relaunch of Campa Cola, Mukesh Ambani-led Reliance Consumer Products Ltd (RCPL) is making another bold move into the sports beverage segment. According to an Economic Times report, teaming up with former Sri Lankan cricket legend Muttiah Muralitharan, RCPL has introduced Spinner, a new sports drink priced at just ₹10 for 150 ml bottles.
Proactive Moves
These developments by Reliance and Unilever come ahead of an anticipated surge in demand for summer products such as soft drinks, ice creams, air conditioners and cooling talc as temperatures across the country, and especially the Northern markets, are already 6-8 degree above normal according to weather forecaster IMD. RCPL has an existing contract packaging partnership for Campa for cans with Muralitharan’s company Muttiah Beverages. Spinner sports drinks are being bottled at Muttiah Beverages’ plant in Mysore, which also bottles Campa soft drinks, according to one of the executives.
Indian Sports Drink Sector
Currently, the sports drinks market is estimated at about ₹240 crore, but mass price points of ₹10 could catalyse the market multi-fold over five years, analysts say. As per a report by Mordor Intelligence, India’s sports drinks market size is expected to reach $ 103.6 million by 2030, growing at a CAGR of 6.35% during the forecast period (2025-2030). The Indian sports drinks market is experiencing significant transformation driven by evolving consumer health consciousness and lifestyle changes, the report says.
Reliance’s Strategic Move
Spinner sports drinks are being co-created, manufactured, and distributed in partnership with Muttiah Beverages, which also bottles Campa soft drinks at its Mysore plant. The disruptive ₹10 price point for a premium category product has already created a buzz among retailers, with stocks being readied for the upcoming peak summer season. Reliance’s affordable pricing strategy, coupled with higher trade commissions and a focus on PET bottles, mirrors the approach that made Campa Cola a success.
The RCPL’s Strategy Behind
Reliance Consumer Products offers double margins to distributors. The company aims to boost sales of its grocery and daily essentials. RCPL brands are priced lower than competitors. This strategy creates a price war. The company focuses on general trade channels. It offers support for distributor sales forces. New Delhi: Reliance Consumer Products (RCPL) is offering margins of 6-8% to distributors and trade partners that are nearly twice that of the industry average, to incentivise them to stock up and push its portfolio of groceries and daily essentials, executives with direct knowledge of the matter said. Large consumer goods firms such as Britannia, Hindustan Unilever, Reckitt, Coca-Cola, Parle and Nestle offer margins of between 3% and 5% to distributors and trade.
HUL Another Player In Market
Reliance is not alone in betting big on India’s sports beverage market. Hindustan Unilever Ltd (HUL) is preparing to launch Liquid IV, a hydration drink that is a leading global brand in the health and wellness segment. Acquired by Unilever in 2020, Liquid IV has already achieved exponential growth in markets like the US, UK, and China. This move aligns with HUL’s broader strategy to expand its premium product portfolio, which is a key profit driver. The entry of Liquid IV, positioned as a wellness-focused hydration solution, highlights the growing competition in India’s sports and hydration drink market.
Reliance Competition With Coca-Cola & PepsiCo
Coca-Cola and PepsiCo have been in the sports drinks segment for years, with Coca-Cola’s Limca Sportz being a notable example. Launched in 2020 and endorsed by Olympic javelin medallist Neeraj Chopra, Limca Sportz has focused on leveraging local appeal. However, the entry of Reliance and HUL is expected to intensify competition, pushing established players to reconsider their pricing strategies.
Reliance’s aggressive pricing, innovative packaging, and focus on value have already disrupted the sparkling beverage market, forcing Coca-Cola and PepsiCo to evaluate their strategies. A similar shake-up could now unfold in the sports drinks market. As consumer demand for hydration and wellness products grows, these developments could redefine the landscape of sports drinks in India, offering value-driven options to millions of consumers.
Conclusion
In conclusion, the entry of Reliance Consumer Products Ltd (RCPL) and Hindustan Unilever Ltd (HUL) into India’s sports beverage market signals a transformative shift, poised to reshape the landscape. RCPL’s innovative approach with the launch of Spinner, priced at just ₹10, is designed to cater to the mass market, leveraging its strategic partnership with Muttiah Beverages and tapping into the growing demand for affordable hydration solutions. This aggressive pricing strategy, coupled with the company’s focus on high-quality packaging and retailer commissions, positions it to capture a significant share of the sports drink market, currently valued at ₹ 240 crore.
Meanwhile, HUL’s introduction of Liquid IV demonstrates the rising competition in the hydration and wellness segment, as it seeks to expand its premium portfolio in India. This increased rivalry, particularly with established players like Coca-Cola and PepsiCo, will likely lead to price adjustments and innovative strategies across the board. As the market is set to grow rapidly, driven by rising consumer awareness of health and wellness, the competition between these major players will benefit consumers, offering more affordable, convenient, and high-quality options. The coming years could witness significant growth in India’s sports drinks market, altering consumption patterns and market dynamics.
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