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Reliance Consumer Products (RCPL), the FMCG arm of Indian retail major Reliance Retail, has announced the acquisition of trademarks, recipes and all intellectual property rights of sugar confectionery maker Ravalgaon for 27 crore INR ($3.7 million), expanding its FMCG portfolio.
Ravalgaon’s portfolio includes the confectionery brands Mango Mood, Coffee Break, Tutty Fruity, Paan Pasand, Choco Cream and Supreme.
In a statement, Ravalgaon reportedly said it had lost market share owing to a surge in competition from both organised and unorganised players, while its profitability had been affected by a sustained increase in raw material, energy and labour prices.
According to sources, the deal does not include a sale of all of Ravalgaon’s assets and liabilities. After completion, Ravalgaon will retain assets such as plant, buildings, and machinery, allowing it to undertake third-party manufacturing for other companies, including RCPL.
The acquisition will augment Reliance’s FMCG portfolio, which already includes brands like Campa, Toffeeman, and Raskik.
The transaction is expected to be completed by March, subject to fulfillment of certain conditions including shareholder approval.
Source: Business Standard / Economic Times / Hindu Business Line
