Reliance Consumer Products (RCPL) has made a significant move in the confectionery market by acquiring the trademarks, recipes, and all intellectual property rights of renowned sugar-boiled confectionery maker Ravalgaon for Rs. 27 crores. The announcement came through a stock market disclosure by Ravalgaon Sugar Farm Ltd.
Ravalgaon, known for its popular brands such as Pan Pasand and Coffee Break, fits perfectly into RCPL’s strategy of reviving old Indian brands facing challenges. This acquisition mirrors RCPL’s previous success in relaunching brands like the Campa soft drink.
The agreement, which was finalized recently, includes the transfer of all intellectual property while leaving Ravalgaon with its other assets, such as property, land, and equipment. Additionally, a no-compete clause for Ravalgaon has been stipulated in the agreement, although the company retains the option for third-party manufacturing, including for RCPL.
Ravalgaon reported revenue of Rs. 9.66 crore in the fiscal year 2022–23. The acquisition is expected to bolster RCPL’s presence in the confectionery segment, where it already operates with acquired brands like Lotus Chocolate and Toffeeman. This move intensifies competition against established players such as ITC, Parle Products, and DS Group.
Ravalgaon attributed its decision to sell to difficulties in sustaining its confectionery business amid stiff competition from both organized and unorganized players. Factors such as rising raw material costs and the impact of the COVID-19 pandemic on consumer demand further compounded its challenges.
As RCPL expands its portfolio with this acquisition, it aims to leverage the rich heritage of Ravalgaon’s brands while implementing strategies to rejuvenate and grow their market presence.