Reliance has already taken over the management, so this is nothing new. Reliance plans to feed its retail / grocery businesses with chocolates, cocoa or other such products using this and undercut the competition. But track record of Reliance to create value in their acquired companies is not great. See businesses such as Hathway, Den Networks, various media companies, Just Dial etc. They only fit in as small pegs in the larger Reliance Gameplan and may not necessarily be a priority for them. So, one must be careful, especially given that the valuation has already run up so much.
Unless there is evidence to show that this time it’s different.
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