RCPL hits sweet spot with Pan Pasand, Mango Mood as it bags Ravalgaon candy biz

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₹27 crore, giving it rights to brands such as Pan Pasand and Mango Mood. "The Board, on the recommendation of the audit committee of the company, inter alia approved the sale, transfer and assignment of the trademarks, recipes, all intellectual property rights, including all rights, interests, and protections associated therewith, relating to the company’s sugar boiled confectionery business to Reliance Consumer Products Limited, for a consideration of Rs27 crore," The Ravalgaon Sugar Farm Ltd said in a filing to the exchanges on Friday. The proposed transaction includes the sale of the intellectual property, and does not envisage a slump sale of all assets and liabilities of the company.

Ravalgaon will continue to hold all other assets such as property, land, plant, building, equipment, machinery, etc. post completion of the proposed transaction, the company said in its filing. The transaction is expected to be completed by the end of March.

The transaction restricts Ravalgaon from directly or indirectly manufacturing, sourcing, marketing, distributing or engaging in any business activity that deals with the products of the company as well as sugar confectionery, jelly confectionery, fruit confectionery, etc. However, the company can continue to contract manufacturing and packaging for third parties as well as RCPL. Ravalgaon was founded in 1933 as part of the Walchand Group but operates independently.

In its filing, the candymaker said the company has found it difficult in recent years to sustain its sugar boiled confectionery business. It has lost market share owing to a surge in competition from both the organized and unorganized players in this industry. At the same time, its profitability has been affected by the