New Delhi: Reliance Consumer Products Ltd (RCPL), a subsidiary of Reliance Retail Ventures Ltd (RRVL), is set to acquire the renowned confectionery brands of Ravalgaon Sugar Farm in a Rs 27 crore transaction, according to a regulatory filing.
The deal encompasses the transfer of trademarks, recipes, and all associated intellectual property rights, including those linked to popular products like Coffee Break and Paan Pasand.
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 the promoters, Harshavardhan Bharat Doshi, Nihal Harshavardhan Doshi, and Lalan Ajay Kapadia, has also been formally executed.
Ravalgaon Sugar Farm clarified that the deal does not encompass the transfer of all assets and liabilities of the company. The company will retain ownership of other assets, including property, land, plant, building, equipment, and machinery, following the completion of the proposed transaction.
Facing challenges in recent years, Ravalgaon Sugar Farm acknowledged difficulties in sustaining its sugar-boiled confectionery business. The company cited a decline in market share due to increased competition from both organized and unorganized players in the industry. Additionally, it noted the impact on profitability caused by continuous rises in raw material, energy, and labor prices, without the ability to pass on these increases effectively to customers beyond the Re 1 price point.
