Reliance Consumer Products acquires Ravalgaon's confectionery brands for Rs 27 crore
Reliance Consumer Products (RCPL) has acquired the trademarks, recipes, and all intellectual property rights of sugar-boiled confectionery maker Ravalgaon for Rs 27 crore, according to a stock market disclosure by Ravalgaon Sugar Farm Ltd.
Ravalgaon owns nine confectionery brands such as Pan Pasand and Coffee Break. This fits RCPL's strategy of acquiring old Indian brands which are under distress and relaunching them, like it had acquired the Campa soft drink brand.
The deed was signed between both the parties on Friday. It excludes the slump sale of all assets and liabilities of Ravalgaon. “It is clarified that while 100% of the revenue of the company (Ravalgaon) is ascribed to the intellectual property being sold, the company will continue to hold all other assets such as property, land, plant, building, equipment, machinery, etc. post completion of the proposed transaction,” as per the disclosure.
While the agreement has a no-compete clause for Ravalgaon, the company said it can do third-party manufacturing for other companies including RCPL.
Ravalgaon’s revenue in 2022-23 was Rs 9.66 crore.
With this, RCPL will strengthen its competition against ITC, Parle Products and DS Group amongst others in the confectionery segment where it already operates with two acquired brands – Lotus Chocolate and Toffeeman.Ravalgaon in the disclosure said it has found it difficult in recent years to sustain its sugar boiled confectionery business and has lost market share owing to a surge in competition from both the organized
