Prataap Snacks Ltd has approved the acquisition of 100% equity stake in RLOP Food Processing Pvt Ltd for a cash consideration of up to ₹16.5 crore, as the snacks maker looks to secure land for its proposed greenfield manufacturing facility.
The company’s Board has cleared the acquisition of the entire issued, subscribed and paid-up share capital of RLOP Food Processing from its existing shareholders. The transaction is expected to be completed on or before September 15, 2026.
Land bank drives acquisition
Prataap Snacks said the strategic acquisition is aimed at gaining control of a company that holds government-allotted leasehold land in Madhya Pradesh, which will be utilised for the company’s planned greenfield manufacturing project.
RLOP Food Processing holds leasehold rights over a parcel of land allotted by government authorities through the District Industries Centre (DIC), Madhya Pradesh.
No commercial operations yet
Incorporated on June 24, 2014, RLOP Food Processing was set up to undertake food processing and related activities. However, the company has not commenced commercial operations and has not generated any revenue from operations during the last three financial years.
The acquisition, therefore, is primarily driven by the strategic value of the land asset rather than an operating business.
Not a related-party deal
Prataap Snacks clarified that the transaction does not qualify as a related-party transaction, and none of its promoters, promoter group entities or group companies have any interest in the target company.
The acquisition is expected to strengthen the company’s manufacturing footprint as it prepares to expand production capacity through a new greenfield facility.