Reliance buys paan-like toffee manufacturing company: deal signed for ₹27 crore; Rawalgaon was started in 1933, the company sells candy since 1942.

‘Ravalgaon’, which ruled the hearts of children of the 1990s with its taste, has sold its candy business to Reliance Consumer Products Limited. Reliance’s Fast Moving Consumer Goods (FMCG) company has acquired the trademarks, recipes and intellectual property rights of Rawalgaon. However, things like property, land, plant, building, equipment and machinery will remain with Rawalgaon. This deal has been done for just Rs 27 crore.

It was becoming difficult to stay in the market due to competition.

According to the company, it was finding it difficult to run its sugar boiled confectionery business in recent years. The company said in the filing that due to increasing competition in both organized and un-organized sectors of the industry, we have lost our market share. Apart from this, profits were also affected due to rising prices of raw material, labor cost and energy cost.

The company sells candies like Paan Pasand, Mango Mood and Coffee Break.

Rawalgaon started with orange flavored and hard-boiled sweets. After this, the company expanded its products to include the country’s first paan-flavored candy as well as products like Mango Mood, Coffee Break, Tutti-Frutti, Supreme Toffee, Cocoa Cream.

It started with sugar meal

The company was started by Maharashtra businessman Walchand Hirachand in 1933 from a sugar mill in Rawalgaon village of Nashik district. In 1942, the company started manufacturing candies under the Rawalgaon brand. The company currently has a total of 9 brands like Mango Mood and Coffee Break.