The makers of Tutty Fruity, Pan Pasand, Coffee Break, Mango Mood and more such products, Ravalgaon Sugar Confectionery, is soon going to be acquired by Reliance Consumer Products.
In a regulatory filing, Ravalgaon Sugar Farm has mentioned that the board has approved the sale, transfer and assignment of its trademarks, recipes and Intellectual Property rights pertinent to the company’s sugar boiled confectionery business to Reliance Retail Ventures’ subsidiary Reliance Consumer Products for a consideration of Rs. 27 crores.
That being said, a deed of assignment by Ravalgaon Sugar’s promoters- Harshavardhan Bharat Doshi, Nihal Harshavardhan Doshi, and Lalan Ajay Kapadi has also been executed.
However, the deal between RCPL and Ravalgaon Sugar does not envisage a sale of all assets and liabilities of the company as Ravalgaon will continue to hold all other assets such as property, land, plant, building, equipment, machinery, etc. after the completion of the proposed transaction.
This development comes after Ravalgaon Sugar has found it difficult to sustain its sugar boiled confectionery business for the past couple years.
As per the filing, Ravalgaon Sugar has lost its market share owing to a surge in competition from both organised and unorganised players in the industry.
“At the same time, its profitability has been affected by the sustained increase in raw material, energy and labour prices, without the ability to effectively pass on the input price increases to its customers beyond the Re 1 price point,” the company added.
With this, the Mukesh Ambani-led Reliance Industries’ Reliance Retail Ventures with its subsidiary, Reliance Consumer Products, has added more gravitas to its ambition of becoming a relevant player in the FMCG segment.
Earlier this month, RCPL had launched its consumer-packaged goods brand ‘Independence’. In September 2022, it had also announced the acquisition of home-grown soft drink brand Campa from Pure Drinks Group and relaunched it in three flavours- Cola, Lemon and Orange in October 2022.
