afaqs! news bureau

Reliance Retail arm acquires majority stake in Lotus Chocolate for Rs 74 crore

It has also announced an open offer to the public shareholders of Lotus to buy up to 26% stake.

Reliance Retail Ventures' (RRVL) subsidiary has acquired 51% controlling stake in Lotus Chocolate Company.

The FMCG arm and a wholly-owned subsidiary of RRVL, Reliance Consumer Products (RCPL), has acquired Lotus Chocolate company from Prakash P Pai, Ananth P Pai and other members of the current promoter and promoter group of the company for ₹74 crore, Reliance Retail said in its regulatory filing.

Isha Ambani, executive director of Reliance Retail Ventures, 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 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.”

Abhijit Pai, founder-promoter of LOTUS, said, “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.”

It has also announced an open offer to the public shareholders of Lotus to buy up to 26% stake.

"RCPL would make a Public Announcement to the public shareholders of  LOTUS to acquire up to 33,38,673 equity shares of LOTUS representing 26% of the equity share capital of LOTUS in accordance with the SEBI Takeover Regulations," the filing said.

The capital infused 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 and people. 

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