Reliance Retail Ventures, a subsidiary of Reliance Industries Limited (RIL), has signed an agreement to acquire a controlling stake in the BSE-listed Lotus Chocolate.
Reliance Retail division - Reliance Consumer Products will acquire a 51 per cent stake in the confectionery maker from the promoter and promoter group entities, and will make an open offer to public shareholders to acquire an additional 26 per cent stake.
According to a regulatory filing from RIL, the promoter group stake will be purchased for Rs 113 per share, amounting to Rs 74 crore.
Reliance Consumer and certain Lotus Chocolate promoter group entities will also subscribe to 5,07,93,200 non-cumulative redeemable preference shares as part of the agreement.
Reliance Retail's investment will help Lotus grow by manufacturing comprehensive confectionery and chocolate derivative products.
“Reliance is excited to partner with Lotus who have created a strong Cocoa & 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. 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,” said Isha Ambani, Executive Director of Reliance Retail Ventures Limited
“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, Lotus.
Lotus is one of India's select manufacturers of fine chocolates, cocoa products, and cocoa derivatives. Lotus products are sold to chocolate makers and chocolate consumers all over the world, from small bakeries to multinational corporations.