Food and Beverage Business

Reliance Industries announces acquisition of Indian confectioner Ravalgaon

Reliance Industries announces acquisition of Indian confectioner Ravalgaon Reliance Retail Food and Beverage Business

Reliance Industries, an Indian conglomerate, is expanding its FMCG assets by acquiring local confectioner The Ravalgaon Sugar Farm Ltd. The purchase, valued at Rs270m ($3.3m), will be conducted through the Reliance Consumer Products division, a wholly-owned subsidiary of the Reliance Retail Ventures business unit. The sale is pending fulfilment of certain conditions precedent, including shareholders’ approval.

According to a filing on the Bombay Stock Exchange, the transaction covers “the sale, transfer and assignment of the trademarks, recipes, [and] all intellectual property rights”. Ravalgaon will retain ownership of “property, land, plant, building equipment, machinery” following the purchase. The confectioner will also be restricted from engaging in any business activity which deals with the company’s products, as well as certain products associated with the Intellectual Property.

Additionally, under the agreement, Ravalgaon will still be allowed to perform its contract manufacturing duties. The confectionery brands produced by Ravalgaon include Pan Pasand Gold, Cheer, Mango Mood, Coffee Break, Tutty Fruit, Assorted Center, Choco Cream, and Supreme.

Ravalgaon decided to enter into an agreement with Reliance due to difficulties in sustaining its sugar boiled confectionery business in recent years. The confectioner faced challenges such as loss of market share from increased competition, as well as rising raw material, energy labour, machinery, and production costs. Furthermore, the pandemic’s effects on the company led to weak demand for its products.

Reliance’s portfolio already includes brands such as Snactac, Good Life, and Desi Kitchen. In addition to the acquisition of Ravalgaon, Reliance secured a 51% stake in Lotus Chocolate Company in January 2023, with an option to purchase a further 26% of the Hyderabad-based group.

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