Isha Ambani, Executive Director, Reliance Retail Ventures Limited, issued a statement saying that this move is part of Reliance’s plan to tap into the market for domestically produced quality products. Because Lotus Chocolate has already established its own track record in the production of chocolate and coca products. From that point of view, through this acquisition, an opportunity will be created to reach a large number of consumers at an affordable price. Isha said, “We look forward to working closely with the experienced management of Lotus. We will then look at the next phase of commercial expansion.”
RCPL will soon announce the purchase of 26% stake in Lotus from the open market. Company sources said that 33.38 lakh equity shares will be bought from the open market as per SEBI norms. According to figures, the respective chocolate manufacturing company posted net sales of Rs 87 crore in March 2022. Net profit is Rs.6 crores. Abhijit Pai, CEO of Lotus, says that they are very excited about this agreement with Reliance. Because, they have always tried to make the company a significant place in the production of chocolate, cocoa products. Where appropriate infrastructure as well as talented staff will be available. Collectively the company aims to create products for customers from all walks of life. According to Lotus officials, it will be possible to reach that target through the agreement with Reliance.
Incidentally, this investment in the FMCG sector of Reliance Industries (Reliance Industries) will increase the presence of Reliance in this sector and will also give Lotus an opportunity to highlight its commercial activities in a new way. Both parties aim to prepare all products like confectionery, coca, chocolate for commercial and consumer market.