Mukesh Ambani signs his first business deal of 2023, acquires 50% stake in Gujarat-based beverages firm Sosyo
By Lokmat English Desk | Published: January 4, 2023 01:40 PM2023-01-04T13:40:47+5:302023-01-04T13:40:47+5:30
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Reliance Consumer Products Ltd (RCPL), the fast-moving consumer goods arm of Reliance Industries Ltd, will acquire a 50 per cent stake in Gujarat-based carbonated soft drinks (CSD) and juices maker Sosyo Hajoori Beverages Pvt Ltd (SHBPL) for an undisclosed amount.
This acquisition will "enable RCPL to enhance its beverage portfolio", Reliance Retail Venture Ltd (RRVL) said in a statement on Tuesday. The Hajoori family, the existing promoters of the 100-year-old beverage maker, will continue to own the remaining stake in SHBPL.
"With this joint venture, Reliance will further strengthen its portfolio in the beverage segment having already acquired the iconic brand Campa. In addition, Sosyo’s expertise in formulations can be leveraged to develop a unique value proposition for the product portfolio and consumers," it added.
RCPL is the FMCG arm and subsidiary of the country's leading retailing firm RRVL. Established in 1923 by Abbas Abdulrahim Hajoori, the company is one of the leading players based out of Gujarat and operates its beverage business under the flagship brand ‘Sosyo’.
SHBPL has a manufacturing plant in Gujarat. It has distribution spread across Gujarat and neighbouring states through its franchises and distributor network. It also caters to overseas markets through its exports to the US, UK, Canada, Australia and others.
RRVL Executive Director Isha Ambani said, "This investment helps us take forward our vision of empowering local heritage brands and presenting them with new growth opportunities."
SHBPL Chairman Abbas Hajoori said, "We are delighted to enter into this partnership with RCPL, a strong and willing partner that can help Sosyo rapidly scale up its reach. Combining our relative strengths, we would make the unique tasting beverage products of Sosyo accessible to all the consumers in India."
RRVL Director Isha Ambani had on August 29 announced the launch of its FMCG goods business during the AGM of Reliance Industries. The company is creating a portfolio through acquisitions and by launching new brands.
देशातील ब्रँड आणि स्थानिक उद्योगांना गती देण्याचं काम आम्ही करत आहोत. रिलायन्स जाईंट वेंचरमध्ये आम्ही सोस्योसोबत भागिदरी करत असल्याचं ईशा अंबानी यांनीही सांगितलं.
"We welcome the desi power of century-old Sosyo’s heritage beverage brands to our consumer brand portfolio and are confident that our know-how, consumer insights and retail distribution strengths will help accelerate the growth momentum of Sosyo," she added. Last month, it announced acquiring a controlling stake in Lotus Chocolate, which manufactures chocolates, cocoa products and cocoa derivatives. Earlier in December, it launched its consumer-packaged goods brand 'Independence'. Under this brand, the company will offer a range of products in several categories, including staples, processed foods and other daily essentials.
