Reliance Consumer Products Limited (RCPL), the FMCG arm of Reliance Retail Ventures Limited, said on Thursday it will acquire a 51% controlling stake in Lotus Chocolate.
On Thursday, definitive agreements were signed by RCPL, Lotus Chocolate Company Limited, Prakash P Pai, Ananth P Pai, and other members of the present promoter and promoter group of Lotus. Here are the terms of the deal
RCPL would also make an open offer to acquire up to 26% more of Lotus Chocolate.
“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,” said Reliance Retail in a statement.
Isha Ambani, Executive Director of Reliance Retail Ventures Limited, said: “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 boosting indigenously developed daily use of 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.”
Abhijit Pai, Founder-Promoter of LOTUS, said: “We are delighted to enter into this partnership with Reliance. We have the 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.”