After making waves in India’s beverage market, Reliance Consumer Products Ltd (RCPL) is now foraying into the personal care segment, aiming to compete with established players like Hindustan Unilever Ltd (HUL) and Dabur Ltd. The company has relaunched Velvette, a once-popular Tamil Nadu-based brand, positioning it as a flagship in its personal care portfolio.
On Thursday, RCPL officially relaunched Velvette, appointing actress Krithi Shetty as the brand ambassador. The launch was marked with a large dealer meet in Chennai, highlighting the company’s commitment to reviving this legacy brand.
RCPL may use Velvette as an umbrella brand for its personal care offerings, leveraging its historical presence in southern India to scale the segment nationally. In a statement, the company noted:
“In line with RCPL’s vision of promoting heritage brands of India, the widely popular Velvette is now a flagship brand in the company’s personal care portfolio.”
The relaunch of Velvette is aligned with RCPL’s broader goal of scaling its FMCG business to achieve ₹1 trillion in revenue within five years. The company plans an initial rollout in 1,400–1,500 stores in Tamil Nadu, with plans to expand to other southern states where the brand has stronger recognition. There is also potential for extending the Velvette brand into male grooming and other personal care categories.
Founded in the 1980s by C.K. Rajkumar, Velvette became a household name through affordable shampoo sachets, earning Rajkumar the nickname “sachet king.” However, the brand faded amid competition from larger players.
RCPL aims to combine nostalgia with modern marketing and distribution, positioning Velvette as a key player in its personal care portfolio. The current product line includes:
Soaps
Shampoos and conditioners
Shower gels and body lotions
Talcum powders
Velvette’s products are priced for mass-market consumers:
8 ml shampoo sachet: ₹2
185 ml shampoo bottle: ₹150
340 ml shampoo bottle: ₹290
Competitors like HUL’s Sunsilk occupy similar price ranges, offering sachets as low as ₹1. Dabur’s Vatika shampoos are priced lower than Velvette, while soaps (40 g at ₹10; 100 g at ₹35) are comparable to Godrej Cinthol.
India’s beauty and personal care market was valued at $28 billion in 2024, with projected annual growth of 11.5% until 2030, according to Deloitte India. However, personal care remains a challenging segment due to high brand loyalty and intense competition.
Velvette will face established players like HUL, ITC, Godrej Consumer Products, RHS Global, and emerging brands such as Mamaearth and Plum. Analysts note that while the category is tougher than beverages or food, Velvette’s legacy appeal in southern markets can give RCPL a competitive edge.
Abneesh Roy, Executive Director at Nuvama Institutional Equities, said:
“Personal care is a tougher category for new entrants. Velvette has brand recall in some southern markets, and Reliance can scale it up via distribution and marketing. However, taking it pan-India will be challenging.”
A trade marketing head added that smaller local brands may feel pressure from Velvette’s rollout:
“They will eat the local players first; while they can build brands in each category, it’s unlikely they will become market leaders in any category.”
RCPL reported FMCG revenues of ₹11,450 crore for FY25, though its personal care distribution remains limited. By contrast, HUL’s personal care segment—including soaps, shampoos, deodorants, and body washes—generated ₹9,168 crore last fiscal, highlighting the potential opportunity for RCPL to grow in this segment.
Conclusion
The relaunch of Velvette marks Reliance Consumer’s strategic entry into India’s personal care market, leveraging nostalgia, affordable pricing, and modern marketing. With targeted expansion in southern markets and plans for pan-India growth, Velvette aims to challenge HUL, Dabur, and other established brands while supporting RCPL’s ambitious revenue targets in the FMCG sector.