Reliance Consumer Products Limited (RCPL) is going to buy 51% of Lotus Chocolate Company for Rs. 74 crores, along with 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 the industrial and consumer market spectrum.
Isha Ambani, executive director of Reliance Retail Ventures Limited, said that the company is happy to partner with Lotus, which has created a strong cocoa and chocolate derivatives business through sharp business intelligence and determination.
“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,” she said.
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.
During the fiscal year ended March 20, 2022, the chocolate company reported sales of Rs. 87 crore and a net profit of Rs. 6 crores. “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,” said Abhijit Pai, Founder-Promoter of Lotus.