For a total of Rs 74 crore, Mukesh Ambani's Reliance Consumer Products (RCPL) completed the purchase of a 51% stake in Lotus Chocolate.
Mukesh Ambani's Reliance Consumer Products (RCPL), the FMCG division of Reliance Retail Ventures (RRVL), is preparing to acquire another company, almost a month after growing into its coffee business. This time, the company said in a press release on Thursday that RCPL successfully concluded the acquisition of a majority ownership interest in Lotus Chocolate Company Ltd.
For a total of Rs 74 crore, RCPL completed the purchase of a 51% stake in Lotus Chocolate. Additionally, for a total of Rs 25 crore, RCPL agreed for Lotus' non-cumulative redeemable preferred stock. Additionally, RCPL has finished acquiring equity shares in accordance with the open offer done under the SEBI Takeover Regulations.
As of May 2023, RCPL declared in its statement that it had sole control over the business. Late in December, RCPL announced it would pay Rs 74 crore for 51% of Lotus Chocolate Company and another 26% through an open offer.
According to a statement, the money from Reliance Industries' FMCG division will help Lotus grow and expand into a full-service confectionery, cocoa, chocolate derivatives, and associated items producer across the industrial and consumer market range.
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Isha Ambani promises premium products at affordable prices
Isha Ambani, executive director of Reliance Retail, was cited in the release as saying, "The acquisition of Lotus underlines our dedication to further increase locally created everyday goods of superior quality in order that cater to a broad customer spectrum at reasonable costs," The Economic Times reported. During the fiscal year that ended in March 2022, the chocolate company reported sales of Rs 87 crore and net income of Rs 6 crore.
The purchase of Lotus Chocolate is a component of Reliance Retail's plan to expand its recent dive into the fast-moving consumer goods (FMCG) industry. RIL's subsidiary will face off against Nestle India and Britannia Industries, two confectionery manufacturers.All of the retail businesses owned by the Mukesh Ambani-led Reliance Industries group are held by RRVL, an entity of RIL.
Milk chocolate and white chocolate each account for a sizeable portion of the market. In this nation, Cadbury, Nestle, Ferrero Rocher, Amul, Parle, Mars, and Hershey Chocolates are the most popular chocolate brands. Lotus produces chocolate, products made from cocoa, and derivatives of cocoa. In accordance with the share purchase contract, RCPL will acquire 77% of Lotus Chocolate's paid-up share capital.
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