Reliance FMCG Arm Acquires Controlling Stakes In LOTUS
Reliance Consumer Products Limited (RCPL)—the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL) on Friday announced that it has completed the acquisition of majority stakes in LOTUS Chocolate Company Limited.
“Further to the media release dated December 29, 2022, regarding acquisition of controlling stake in Lotus Chocolate Company Limited (“LOTUS”), Reliance Consumer Products Limited (“RCPL”), the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL) has completed the acquisition of 51 per cent controlling stake in LOTUS for an aggregate consideration of INR 74 crore,” the official statement stated.
According to the release, the company has also subscribed to non-cumulative redeemable preference shares of LOTUS for an aggregate consideration of INR 25 crore. “RCPL has also completed the acquisition of equity shares pursuant to the open offer made under SEBI Takeover Regulations. RCPL has taken sole control of LOTUS with effect from May 24, 2023,” it added.
RCPL had said in December Last year that it is in talks with LOTUS to acquire controlling stakes in the company. Earlier it had also said that RCPL will also make an open offer to buy up to 26 per cent stake.
It had also said that the capital infused by RCPL "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 backed by state-of-the-art manufacturing, best in-class processes & people."
Reliance Consumer Products Ltd aims to provide a wide range of products under a versatile brand portfolio that serve the daily needs of millions of Indians. RRVL reported a consolidated turnover of INR 260,364 crore and net profit of INR 9,181 crore for the year ended March 31, 2023.
Listed on BSE stock exchange, LOTUS is one of India’s select manufacturers of the finest chocolates, cocoa products and cocoa derivatives. It is well known reliable business partner for the supply of cocoa and chocolate products, starting from the sourcing of fine quality cocoa beans to processing of cocoa beans and delivering the finest chocolates.