Reliance completes acquisition of Lotus Chocolate

26 May 2023 , 11:59 AM

Reliance Consumer Products (RCPL), the FMCG division of Reliance Retail Ventures (RRVL), said in a press statement on Thursday that it has successfully acquired a controlling interest in Lotus Chocolate Company Ltd.

For a total of Rs74 crore, RCPL completed the purchase of a 51% investment in Lotus Chocolate. For an additional Rs 25 crore, RCPL subscribed for Lotus’ non-cumulative redeemable preference shares.

Additionally, RCPL has finished acquiring equity shares in accordance with the open offer made under the SEBI Takeover Regulations. With effect from May 24, 2023, RCPL assumed complete control of the business, according to its statement.

Late in December, RCPL announced it will pay Rs 74 crore acquiring 51% of Lotus Chocolate Company and another 26% through an open bid.

According to a release, the money from Reliance Industries’ FMCG division would help Lotus grow and expand into a comprehensive confectionery, cocoa, chocolate derivatives, and associated products maker across the industrial and consumer market spectrum.

Isha Ambani, executive director of Reliance Retail, was quoted in the release as stating, ‘The investment in Lotus underlines our commitment to further boost indigenously developed daily use high-quality products, to serve a broad customer spectrum at affordable prices.’

During the fiscal year that ended in March 2022, the chocolate company reported revenues of Rs 87 crore and net income of Rs 6 crore. ‘We are excited to work with Reliance in this cooperation. With the support of top-tier talent and manufacturing capabilities, we have a vision to create a business that sells confectionary items of the highest calibre across all client segments. Through this investment and our strategic cooperation with Reliance, we will expedite Lotus’ transformation and further enable this goal. Promoter and founder Abhijit Pai.

The purchase of Lotus Chocolate is a component of Reliance Retail’s plan to expand its recent debut into the fast-moving consumer goods (FMCG) industry. RIL’s subsidiary will go up against Nestle India and Britannia Industries, two candy manufacturers.

The holding company for all the retail companies under the RIL group is RRVL, a division of Mukesh Ambani-led Reliance Industries.

RIL Chairman Mukesh Ambani had revealed the conglomerate’s intention to enter the burgeoning FMCG industry at the annual general meeting in August 2022.

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