Reliance Industries is in talks to acquire brands such as Garden Namkeens from CavinKare, besides other brands such as Lahori Zeera & Bindu Beverages in a bid to strengthen its fast-moving consumer goods(FMCG) play, people familiar with the development told. They had acquired soft drink brand Campa from Delhi-based Pure Drinks Group in a deal estimated at Rs.22 crore.

According to a person close to the development, Reliance is at an `advanced stage' of negotiations with all three companies. Acquiring more brands in the FMCG space is in line with the company's strategy, the person said. In all three cases, Reliance is currently negotiating deal terms.

According to its website, the launch of packaged drinking water brand Bindu Mineral Water led to the establishment of SG Corporates, the company behind Bindu Beverages. The flagship Bindu Fizz Jeera Masala drink was launched in 2002. Apart from Lahori Zeera, Lahori drinks are available in other flavours such as Nimboo, Kacha Aam & Shikanji. The company states on its website that it was launched with an aim of

introducing traditional Indian flavours with a `zing'. "There will be different structures that will have to be put in place. In certain cases, the brands are owned by larger groups, while in certain cases, some promoters want to retain certain equity", the person said.

Reliance, Bindu Beverages and Lahori didn't respond to queries sent on. CavinKare didn't reply to questions specifically about a possible acquisition but forwarded an email that was a response to a separate a query that read: `We do not want to comment on this type of corporate speculation'. Experts said India could see more consolidation in the consumer space in the next few years.

"The processed foods and consumer foods sector is growing in double digits as India continues to grow and discretionary spending of Indians keeps increasing", said Dinesh Arora, partner, financial advisory services at PwC India. "Any large company that has serious expansion plans in the consumer space would need private brands in their portfolio and while new brands continue to emerge and occupy shelf space, they become ideal targets for larger players who are looking to expand".

Reliance Industries NSE 0.57 percent announced at its 45th annual general meeting (AGM) that its subsidiary Reliance Retail was foraying into the FMCG business. "This year, we will launch our FMCG business", says Isha Ambani, director of Reliance Retail Ventures, had said at the AGM on August 29. The objective of this business is to develop and deliver high quality, affordable products which solve every Indian's daily needs. Estimated to be worth over $100 billion, the FMCG sector is dominated by foreign & Indian companies.