Reliance Consumer Products Limited, the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures Limited, has acquired 51 per cent stake in Lotus Chocolate Company Limited at a price per share of ₹113.00 aggregating to ₹74 crore.
RCPL would make an open offer to acquire up to 33,38,673 equity shares of Lotus, representing 26 per cent of its equity share capital. “The capital infused by RCPL will help drive the growth and expansion of Lotus into a comprehensive confectionery, cocoa, chocolate derivatives and related products manufacturer across industrial and consumer market spectrum backed by state-of-the-art manufacturing, best in-class processes and people,” said a statement.
Next growth phase
Speaking on this transaction, Isha Ambani, Executive Director of Reliance Retail Ventures Limited, said, “Reliance is excited to partner with Lotus who have created a strong cocoa and chocolate derivatives business through sharp business acumen and perseverance. 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. We look forward to working with the highly experienced management team of Lotus as we further expand the business and drive its next growth phase.”
Abhijit Pai, Founder-Promoter of Lotus, said, “We are delighted to enter into this partnership with Reliance. We have a vision to build a world class confectionery products business across customer segments backed by best-in-class manufacturing capabilities and talent. Our strategic partnership with Reliance, through this investment, will further enable this vision and accelerate Lotus’ transformation.”