51% stake in the company acquired for ₹74 crore
Starting from a price of ₹35 per share in September 2021, the company’s shares have currently reached ₹1,807 per share. The company’s shares have seen an increase of 404% in the last four months alone. The surge primarily started when Reliance Consumer Products (RCPL), the FMCG arm of Reliance Retail Ventures Limited (RRVL), acquired 51% stake in the company for ₹74 crore in March 2023.
Impact of Reliance Industries
RRVL, a subsidiary of Mukesh Ambani-led Reliance Industries, controls all the retail businesses. Lotus Chocolate Company manufactures India’s finest selection of high-quality chocolate, cocoa products and cocoa derivatives, which are supplied to chocolate manufacturers and users across the country.
market development
Consumer spending in the Indian chocolate and confectionery industry is estimated to exceed ₹25,000 crore, with chocolate accounting for about two-thirds and confectionery one-third. The industry is likely to reach more than ₹35,000 crore in the coming four years with a compound annual growth rate (CAGR) of 10%.
strategic focus
Demand for premium products in the chocolate category has increased in recent years, creating an opportunity in the affordable segment. This provides a huge opportunity where it can develop high-quality brands at affordable prices, the company said in its FY24 annual report.
In the B2B space, there are huge opportunities for the company with the growing trend of home bakers and increase in consumption of chocolate-based products. The company is trying to take advantage of this, especially in the retail and HORECA (hotels, restaurants and cafes) channels.