Mukesh Ambani’s New Electronics Play: Reliance to Launch ‘Kampa’ Strategy in Consumer Electronics

Under Mukesh Ambani’s leadership, Reliance Electronics is gearing up to make a major move in the consumer electronics market, using the same strategy that worked for them in the beverage sector with Kampa Cola. This formula is now being applied to electronics such as TVs, refrigerators, washing machines, and small home appliances.

New Brands and Strategy

According to a report by Source, Reliance has developed its own electronics brands, including Kelvinator and BPL, which were previously used under licensing agreements. For instance, Reliance had licensed the Kelvinator brand and recently acquired it for around ₹160 crore in the last quarter. Similarly, the BPL brand was initially licensed.

Under these brands, Reliance is now expanding its product line from legacy small appliances to premium electronics, offering a broader range of products across categories.

Aggressive Pricing and Business Margins

Reliance’s strategy focuses on three main pillars:

• Low Prices: Products under Kelvinator and BPL will be priced 20–25% lower than competitive brands like LG or Samsung.

• High Margins: Industry experts estimate the new products will have 8–15% higher margins than established brands.

• Wide Distribution Network: Reliance will not limit sales to its own stores but will also distribute products through multi-brand electronics stores, regional retail chains, and e-commerce platforms.

Domestic and Global Expansion

Reliance has begun exporting Kelvinator and BPL-branded products to South Asian countries such as Nepal and Bhutan. The company plans to expand to Sri Lanka, the Middle East, and eventually Africa. This expansion aligns with their mission to democratize access to technology.

Product Category Expansion

Under the Kelvinator brand, Reliance offers a full range of home appliances including side-by-side premium refrigerators, front-load washing machines, direct-cool refrigerators, and air coolers.

The BPL brand, initially focused on TVs in the mid-to-premium segment, is now expanding into ACs, refrigerators, washing machines, and smaller appliances such as fans and coolers, ensuring presence across all price points and categories.

Why This Strategy Could Work

This approach is promising because while established brands dominate the market, their products are expensive. Reliance has a strong distribution network and retail platform (Reliance Retail) that can quickly scale brand visibility and sales. By entering the global market, the company can capture new markets with less competition, accelerating its growth potential.