In December last year, Reliance Retail announced to acquire a controlling stake in Lotus Chocolate for 740 million rupees ($8,9 mln).
Reliance Consumer Products (RCPL), the FMCG arm of Reliance Retail Ventures (RRVL) has completed the acquisition of a controlling stake in Lotus Chocolate Company Ltd and subscribed to non-cumulative redeemable preference shares of Lotus for an aggregate consideration of 250 million rupees ($3 mln).
The capital infused by the FMCG arm of Reliance Industries 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, it said in a statement.
The acquisition of Lotus Chocolate is part of Reliance Retail’s strategy to build the fast-moving consumer goods (FMCG) business that the firm recently forayed into.
Reliance Industries, led by billionaire Mukesh Ambani, has diversified from its mainstay oil-to-chemical business with a strong focus on retail and telecom.
Reliance Retail, currently India's biggest retailer, had this year set out plans to acquire dozens of small grocery and non-food brands, as it aims to build its own $6.5 billion consumer goods business to challenge foreign giants like Unilever and Nestle.
Sources: Economic Times, Times of India
