Reliance Retail has completed the acquisition of a majority stake (51%) in Lotus Chocolate Company
Reliance Retail Ventures, the FMCG division of Reliance Retail, acquires a controlling stake in Lotus Chocolate Company Ltd. The acquisition aims to propel Lotus Chocolate's growth as a leading confectionery and cocoa products manufacturer. Explore how Reliance Retail is expanding its FMCG business and serving a diverse customer base with high-quality products.
Reliance Retail’s objective to expand its FMCG business, which it recently entered, includes the acquisition of Lotus Chocolate.
The fast-moving consumer goods (FMCG) division of Reliance Retail Ventures (RRVL), Reliance Consumer Products (RCPL), announced on Thursday that it has successfully completed the acquisition of a controlling stake in Lotus Chocolate Company Ltd.
For a total of Rs 74 crore, RCPL finalized the purchase of a 51% stake in Lotus Chocolate. Additionally, for a total of Rs 25 crore, RCPL subscribed for Lotus’ non-cumulative redeemable preference shares.
According to a statement from the firm, the money from Reliance Industries’ FMCG division will 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 a net profit 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, our strategic cooperation with Reliance will further enable this goal and hasten Lotus’ transition, according to Abhijeet Pai, founder and promoter of Lotus.
The purchase of Lotus Chocolate is a component of Reliance Retail’s strategy to expand the FMCG business it recently entered. Britannia Industries and Nestle India will compete against RIL’s business in the confectionery industry.
Reliance Industries’ subsidiary RRVL acts as the holding company for all RIL retail businesses. It is owned by Mukesh Ambani.
RIL Chairman Mukesh Ambani stated the conglomerate’s intention to enter the burgeoning FMCG industry during the annual general meeting in August 2022.
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