India’s retail and FMCG sector continues its dynamic evolution, marked by bold corporate moves and global interest.
Reliance is in the spotlight again, announcing plans to demerge its FMCG business into a standalone entity, and separately acquiring the Kelvinator brand to deepen its presence in consumer durables.
Meanwhile, global retail giant Costco is set to open its first tech centre in India, adding to the country’s growing status as an innovation hub.
Quick commerce continues to surge, with Blinkit now surpassing food delivery in order value, signalling a shift in urban consumption habits. AI is also making quiet but significant inroads, Indian retailers are increasingly relying on smart tech to personalise, optimise, and scale operations.
On the global front, India is gaining favour with major international brands across fashion and beauty, drawn by its young, digital-first consumer base. The future of Indian retail is fast, tech-led, and increasingly global in ambition.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. Demerger: Reliance Retail to spin-off FMCG business into separate company
Mukesh Ambani's Reliance Industries Limited (RIL) has shared an update regarding the demerger of its FMCG business. In a conference call post Q1 Results FY2025 last week, RIL said that the company working on a plan to carve out its FMCG business from Reliance Retail into a separate firm.
U.S. retailer Costco Wholesale Corp will open its first technology centre in India in Hyderabad, two people familiar with the plans told Reuters. The Global Capability Centre, handling technology and research operations and working alongside global teams, will initially employ 1,000 people and scale up, sources said.
3. Blinkit Expands to 10.4 Mn Sq Ft, Eyes 2,000 Stores by Dec 2025
Eternal reported a 67 percent year-on-year growth in consolidated adjusted revenue for Q1FY26, reaching Rs 7,563 crore. The company’s quick commerce business added 243 net new stores during the quarter, driving its Net Order Value (NOV) to Rs 9,203 crore, marking a 127 percent year-on-year increase and overtaking food delivery for the first time. In comparison, food delivery NOV rose by 13 percent during the same period.
4. Reliance Retail buys Kelvinator brand
Reliance Retail has acquired home appliances brand Kelvinator for India from Sweden’s Electrolux as it looks to expand market share in the consumer durables space, stepping up competition against global and local giants such as Samsung and Tata’s Voltas in the market. Reliance Retail has been holding manufacturing and distribution rights for the brand in India since 2019 through a licensing deal signed with its Swedish owner.
5. How India’s Retail Giants Are Wisely Using AI to Think, Predict, and Deliver
Leading Indian retail giants are quietly integrating AI across their operations, not in the spotlight but powering smarter search, customer support, personalization, and logistics using tools like Microsoft Azure and GPT-based assistants. They’re driving real impact, such as boosting customer satisfaction by around 20%, speeding up feature rollouts, and improving long-tail product discovery through backend AI deployments.
From Spanish fast fashion label Bershka to Korean skincare player Sungboon Editor, a host of global names are eyeing India. Despite global economic uncertainties and tariff concerns impacting major markets, India is emerging as a promising destination for foreign brands. Fueled by a young, tech-savvy population and rising disposable incomes, numerous international companies, from fashion to beauty, are entering or expanding their presence in the Indian market.
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