Business India

According to a regulatory filing, Reliance Consumer Products Ltd (RCPL), the FMCG arm of Reliance Industries Ltd, is set to acquire a controlling stake in Lotus Chocolate. The share purchase agreement entails RCPL obtaining 77% of Lotus Chocolate’s paid-up share capital through a secondary purchase from promoters Prakash Peraje Pai and Ananth Peraje Pai, followed by an open offer.

Lotus Chocolate, known for its production of chocolates, cocoa products, and cocoa derivatives, revealed the execution of a shareholders agreement (SHA) between RCPL and members of the promoter and promoter group. The stakeholders include Prakash Peraje Pai, Ananth Peraje Pai, Poornima Pai, Nivedita Pai, Ashwini Pai, Abhijeet Pai, Aman Pai, and Aditya Pai.

As outlined in the share purchase agreement (SPA), Prakash Peraje Pai and Ananth Peraje Pai, jointly holding a 57% stake in Lotus Chocolate as of September 2022, are proposing to sell equity shares to RCPL. The transaction triggers an obligation on RCPL to extend an open offer to the public shareholders of Lotus Chocolate.

RCPL, a subsidiary of Reliance Retail Ventures Ltd (RRVL), is keen on establishing itself as a significant player in the FMCG segment. Recently launching the ‘Independence’ brand, RCPL aims to offer a variety of products, including staples, processed foods, and daily essentials.

The broader ambitions of RRVL, led by Director Isha Ambani, involve expanding its FMCG portfolio. Prior acquisitions include the home-grown soft drink brand Campa, and there have been discussions about potential acquisitions of brands like Garden, Lahori Zeera, and Bindu Beverages.

RRVL, as the holding company for all retail businesses under Reliance Industries, operates an extensive network of over 16,500 stores and collaborates with more than 2 million merchants. Its omnichannel presence is seen through platforms like Jio Mart, Ajio, Netmeds, Zivame, and other online channels. In FY22, RRVL reported a consolidated turnover of Rs 1.99 lakh crore.