Reliance Consumer Products (RCPL), a subsidiary of Reliance Retail Ventures Ltd, has recently made a significant acquisition by acquiring the confectionery business of Ravalgaon Sugar Farm. The acquisition aligns with RCPL’s strategy of acquiring established Indian brands and relaunching them. This move allows RCPL to tap into the confectionery segment and compete with other FMCG companies for a larger market share.
Ravalgaon Sugar Farm owns several iconic confectionery brands, including Mango Mood, Coffee Break, Tutty Fruity, Paan Pasand, Choco Cream, and Supreme. These brands have a strong presence in the market and enjoy a loyal customer base. By acquiring these brands, RCPL gains access to a diverse range of products and expands its offerings in the confectionery segment.
Ravalgaon Sugar Farm has faced challenges in recent years, leading to the decision to sell its confectionery business. The company has struggled to sustain its sugar-boiled confectionery business due to increased competition from both organised and unorganised players in the industry. Additionally, rising raw material, energy, and labour prices have impacted profitability, making it difficult for Ravalgaon to pass on these cost increases to customers beyond a certain price point.
With the acquisition of Ravalgaon’s confectionery brands, RCPL aims to strengthen its competition against other major players in the confectionery segment, such as ITC, Parle Products, and DS Group. RCPL already operates in the confectionery segment with two acquired brands, Lotus Chocolate and Toffeeman. This acquisition provides RCPL with an opportunity to expand its market share and leverage the popularity of Ravalgaon’s brands to drive growth.
RTM Watch’s Take
The acquisition of Ravalgaon’s confectionery brands by Reliance Consumer Products marks a strategic move to expand its FMCG portfolio and strengthen its position in the market. By acquiring established Indian brands, RCPL can tap into the confectionery segment and compete with other FMCG giants. This acquisition aligns with RCPL’s growth strategy and provides an opportunity to leverage the popularity of Ravalgaon’s brands to drive growth in the confectionery market.
