Patanjali Foods to acquire Patanjali Ayurved’s non-food biz for Rs 1,100 cr | Company News
The company has also entered a licensing agreement with Patanjali Ayurved for a 3 per cent turnover-based fee
Akshara Srivastava New Delhi
Indian fast-moving consumer goods (FMCG) company Patanjali Foods (formerly Ruchi Soya Industries) announced on Monday its acquisition of the entire non-food business from Patanjali Ayurved.
The listed entity will purchase this business for a total consideration of Rs 1,100 crore, to be completed in five tranches.
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Also, Patanjali Foods has entered into a licensing agreement with Patanjali Ayurved, involving a 3 per cent turnover-based fee.
The non-food business currently serves four key segments within the home and personal care (HPC) category, expanding Patanjali Foods’ product portfolio to include dental care, skin care, home care, and hair care.
“This strategic initiative for acquisition of HPC business shall strengthen the company’s existing FMCG product portfolio with an array of marquee brands that will contribute to significant growth in revenue and earnings before interest, tax, depreciation, and amortisation,” the company said in an exchange filing.
The acquisition is expected to yield synergies in brand equity, product innovation, cost optimisation, infrastructure and operational efficiency, and have a positive impact on market share, it added.
This move by Patanjali Foods follows heightened regulatory scrutiny of the company. Previously, in May 2021, Patanjali Foods acquired the biscuit business of Patanjali Natural Biscuits for Rs 60.03 crore, followed by a noodle and breakfast cereal business for Rs 3.5 crore in June 2021, and a food business for Rs 690 crore in May 2022 from Patanjali Ayurved.
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