Reliance Consumer to Acquire Ravalgaon Sugar Farm, Parent of Paan Pasand, in ₹27 Cr Deal

Reliance Consumer to Acquire Ravalgaon Sugar Farm
Reliance Consumer to Acquire Ravalgaon Sugar Farm

by Tanushree Jaiswal Last Updated: Feb 12, 2024 - 04:49 pm 567 Views
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Reliance Consumer Products Ltd (RCPL), a subsidiary of Reliance Retail Ventures Ltd (RRVL), is set to acquire the iconic brands owned by Ravalgaon Sugar Farm. The deal valued at ₹27 crore includes well known names such as Coffee Break and Paan Pasand, among others. This acquisition highlights RCPL's ambition to establish itself as a key player in the fast moving consumer goods (FMCG) segment.

Background and Deal Details

Ravalgaon Sugar Farm established in 1933 by Walchand has a rich heritage in the confectionery business. Over the years it introduced beloved treats like Pan Pasand, Mango Mood, Coffee Break, Tutty Fruity, Supreme Toffee and Choco Cream becoming favorites among generations of consumers. Despite its storied history the company has faced challenges in recent times struggling to maintain market share amidst increased competition and rising costs of raw materials, energy and labor.

The acquisition by RCPL includes the transfer of trademarks, recipes and all intellectual property rights associated with Ravalgaon's brands, the agreement does not involve the sale of all assets and liabilities of Ravalgaon Sugar Farm. The company will retain ownership of assets such as property, land, plant, building, equipment and machinery, ensuring continuity in its operations beyond the transaction.

For RCPL, this acquisition aligns with its vision to expand its presence in the FMCG sector. Earlier this month the company introduced its own consumer packaged goods brand, 'Independence,' signaling its intent to capture market share and offer diverse product offerings. Moreover, Reliance had previously acquired the home grown soft drink brand Campa further emphasizing its commitment to growth and innovation in the consumer goods space.

As RCPL integrates Ravalgaon's brands into its portfolio consumers can expect continued access to their favorite confectionery treats. As per the company with a focus on quality and authenticity Ravalgaon's products known for being 100% vegetarian and made with genuine ingredients like coffee powder, mango pulp and fresh milk are poised to resonate with discerning consumers in the market.

Final Words

The acquisition of Ravalgaon's sugar confectionery brands by Reliance Consumer Products Ltd marks a development in the FMCG industry. While Ravalgaon Sugar Farm continues to retain key assets, including property and machinery, this strategic move highlights RCPL's commitment to innovation and growth in the competitive consumer goods landscape. As the integration progresses, consumers can anticipate exciting offerings from RCPL building on the legacy of beloved brands like Coffee Break and Paan Pasand.

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.

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