New Delhi, Feb 9 (PTI) Reliance Consumer will acquire Ravalgaon Sugar confectionery's brands, including Coffee Break and Paan Pasand, in a Rs 27 crore deal.
Ravalgaon Sugar Farm, which owns brands such as Mango Mood, Coffee Break, Tutty Fruity, Paan Pasand, Choco Cream and Supreme, has sold its trademarks, recipes, all intellectual property rights to Reliance Consumer Products Ltd (RCPL), as per a regulatory filing.
In the filing, Ravalgaon Sugar Farm said its board "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 RCPL for a consideration of Rs 27 crore".
A deed of assignment by its promoters Harshavardhan Bharat Doshi, Nihal Harshavardhan Doshi, and Lalan Ajay Kapadi has also been executed, it added.
RCPL is a subsidiary of Reliance Retail Ventures Ltd (RRVL), which is the retail arm of Mukesh Ambani-led Reliance Industries Ltd.
The deal "does not envisage a sale of all assets and liabilities of the company", Ravalgon said, adding that it will continue to hold all other assets such as property, land, plant, building, equipment, machinery, etc, after the completion of the proposed transaction.
According to Ravalgaon Sugar, it 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 organised and unorganised players in this 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," it said.
RCPL has ambitions to be a relevant player in the FMCG segment. It had earlier this month launched its consumer packaged goods brand 'Independence'. Before this, Reliance had acquired the home-grown soft drink brand Campa. PTI KRH TRB TRB