Reliance launching the Campa Cola brand has fizzed up the cold beverages markets. After acquiring it for ₹22 crore last year, the conglomerate launched the famous drink to the public last month. The launch has sparked several speculations as to how the entry of the Mukesh Ambani-led Reliance’s Campa Cola will impact the cola market. So, in this article, we try to find out what’s all the fizz about and how you as an investor can get in on the action.
The Nostalgia Factor
Campa Cola was one of the most popular brands in the country in the 70s and the 80s after the Indian government asked cold beverages giant Coca-Cola to leave the country. It was launched by Pure Drinks which used to manufacture and distribute Coca-Cola in India. The exit of the Coke behemoth did make things a little easier for the homegrown brand but it still faced competition from Thums Up and the state-owned ‘sarkari drink’ Double Seven 77. However, soon its orange-flavoured drink won over the people and the cola market which it would continue to dominate for almost 15 years.
Why Campa Cola Closed?
The company however could not keep up with the increased competition that came in the 90s as India opened its doors to foreign players. The Manmohan Singh-led economic liberalisation saw beverage giants Coca-Cola and Pepsico entering the market and subsequently conquering it. The homegrown Campa Cola wasn’t able to compete and had to shutter most of its operations in 2000 before completely vanishing from the Cola scene.
The Campa Cola Resurgence
When India’s richest man Mukesh Ambani bought Campa Cola from Pure Drinks, it created waves both on social media and the market. Now, with its launch last month, it is already turning up the heat for its competitors. The retail giant has also priced its drink considerably lower undercutting the competition. While many seem impressed by the launch, some experts and analysts feel that it won’t be easy for the oil-to-telecom giant to sweep away the competition as the FMCG sector is a tricky space.
Now for the question you are looking for
How To Buy Reliance’s Campa Cola Share?
Campa Cola is not a listed entity on the Indian stock exchanges. So it will not be possible for you to buy Campa Cola shares directly or check the Campa Cola share price. But now since Campa Cola is owned by Reliance, you can buy shares of its listed entity Reliance Industries to indirectly invest in Campa Cola shares.
It is worth keeping in mind that Reliance is a gigantic company with a market cap of ₹15.7 trillion at the time of writing. It has a wide variety of holdings ranging from oil to telecom to FMCG. Therefore, campa cola only constitutes a very small portion of the company’s business interests.
If you are someone who isn’t impressed by Reliance’s Campa Cola, then maybe you have an option to invest in Varun Beverages Ltd or VBL’s shares — which is Pepsico’s India Bottler.
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