Fast-moving consumer goods arm of Reliance Industries Ltd, Reliance Consumer Products Limited has decided to acquire a majority stake in Hyderabad-based chocolate manufacturer, Lotus Chocolate Company. Latest regulatory filings state that Reliance Consumer Products Limited has stricken a deal with promoters of the chocolate manufacturer.
Founded in 1988, Lotus Chocolate is one of the largest supplier of chocolate products in the country. Other than chocolate related items, the company also produces cocoa products and cocoa derivatives.
According to details of share purchase agreement submitted to regulatory bodies, Reliance Consumer Products Limited proposed to acquire 77 per cent shareholding of the chocolate manufacturer through a secondary purchase. A major part of the shareholding will be acquired from Prakash Peraje Pai and Ananth Peraje Pai who are currently promoters of the company. As of quarter which ended on September 2022, both Prakash Peraje Pai and Ananth Peraje Pai owns 57 per cent stake in lotus chocolate company.
In its regulatory filing, Lotus Chocolate said a shareholders’ agreement (SHA) has been executed between RCPL and members of the promoter and promoter group, namely Prakash Peraje Pai, Ananth Peraje Pai, Poornima Pai, Nivedita Pai, Ashwini Pai, Abhijeet Pai, Aman Paiand and Aditya Pai. Director Board of the company has also give green signal for the execution of shareholder’s agreement (SHA) with RCPL.
Following the acquisition of shares from promoters of the company, Reliance Consumer Products Limited will be obliged to conduct a public offer for acquiring shares from public shareholders of the chocolate manufacturing company.
Reliance Consumer Products Limited is a subsidiary company of Reliance Retail Ventures Ltd (RRVL), which is owned by Reliance Industries. Managing Director of Reliance Retail, Isha Ambani had in August 2022 announced the launch of FMCG goods business under Reliance Retail. She made the grant announcement during Annual General Meeting of Reliance Industries.
By making major acquisitions and mergers, RCPL aims to become one of the largest fast moving consumer goods company in the country. A few weeks ago, Reliance acquired the Indian soft drink brand ‘Campa Cola’ from New Delhi based Pure Drinks Group for nearly 22 crore Indian rupees. The company also plans to acquire entities such as acquire Garden, Lahori Zeera and Bindu Beverages.
In the financial year 2022, the company clocked a consolidated turnover of more than 1.99 lakh crore rupees.
