Reliance Acquires Lotus Chocolate, Completes 51% Investment

Reliance Consumer Products (RCPL), the FMCG division of Reliance Retail Ventures (RRVL), said in a press statement on Thursday that it has successfully acquired a controlling interest in Lotus Chocolate Company.

RCPL completed the purchase of a 51 per cent investment in Lotus Chocolate for a total of Rs 74 crore. For an additional Rs 25 crore, RCPL subscribed for Lotus' non-cumulative redeemable preference shares.

As per the company’s statement, RCPL has also completed the acquisition of equity shares pursuant to the open offer made under SEBI Takeover Regulations. RCPL took sole control of the company with effect from 24 May 2023.

It may be recalled that in late December last year, RCPL had said it will acquire 51 per cent in Lotus Chocolate Company for Rs 74 crore and will also buy another 26 per cent in an open offer.

Reliance Industries' FMCG division stated in a statement that the funds that it has invested will help Lotus grow and expand into a comprehensive confectionery, cocoa, chocolate derivatives, and associated goods maker across the industrial and consumer market spectrum.

“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, the executive director of Reliance Retail, was quoted as saying in the release.

The acquisition of Lotus Chocolate is part of Reliance Retail’s strategy to build the fast-moving consumer goods (FMCG) business that the firm recently forayed into. It will see RIL's arm compete with confectionery makers Britannia Industries and Nestle India.