Reliance Consumer Products Limited (RCPL) said it will acquire 51% in Lotus Chocolate Company for Rs 74 crore and will also buy another 26% in an open offer.
The capital infused by the FMCG arm of Reliance Industries 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, it said in a statement.“
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,” Isha Ambani, executive director of Reliance Retail Ventures Limited, said. “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.”
RCPL would make a public announcement to the public shareholders of Lotus to acquire up to 33.38 lakh equity shares of Lotus representing 26% of the equity share capital of Lotus in accordance with the SEBI Takeover Regulations, it said.
The chocolate company posted sales of Rs87 crore during the year ended March 2022 with net profit of Rs6 crore. “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,” Abhijit Pai, Founder-Promoter of Lotus, said.