Reliance Consumer Products to acquire 51% stake in Lotus Chocolate Company Limited
Mumbai, December 31, 2022
Reliance Consumer Products Limited (RCPL), the FMCG arm and a wholly-owned subsidiary of Reliance Retail Ventures Limited (RRVL), will acquire 51% of the paid-up equity share capital of Lotus Chocolate Company Limited, the company has said.
A press release from RCPL said here on Thursday it had signed definitive agreements in this regard with Lotus Chocolate Company Limited and Prakash P Pai, Ananth P Pai and other members of the current promoter and promoter group of Lotus.
Under the agreements, RCPL will acquire 65,48,935 equity shares of Lotus, representing 51% of its paid-up equity share capital from the current promoter and promoter group of the company at a price per share of Rs. 113.00 aggregating to Rs. 74 crore.
RCPL and certain promoter group entities of Lotus will subscribe to 5,07,93,200 non-cumulative redeemable preference shares of face value of Rs. 10 each at par.
The parties have also executed a shareholder’s agreement governing certain inter se rights and obligations, the release said.
RCPL would make a public announcement to the public shareholders of Lotus to acquire up to 33,38,673 equity shares, representing 26.00% of its equity share capital, in accordance with the SEBI Takeover Regulations.
"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," the release said.
Speaking on the transaction, 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 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.”
Reliance Retail Ventures Limited is a subsidiary of Reliance Industries Ltd and the holding company of all the retail businesses under the RIL group. It reported a consolidated turnover of ₹ 199,704 crore ($ 26.3 billion) and net profit of ₹ 7,055 crore ($ 931 million) for the year ended March 31, 2022.
Listed on BSE, Lotus is one of India's select manufacturers of chocolates, cocoa products and cocoa derivatives. Lotus products are supplied to chocolate makers and chocolate users across the world, starting from local bakeries to multi-national companies.
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