Home   »   Business Current Affairs & News   »   Patanjali Food Business will be acquired...

Patanjali Food Business will be acquired by Ruchi Soya for Rs. 690 crore

Ruchi Soya, an edible oil company, has announced that it will buy Patanjali Ayurved’s food division for Rs 690 crore. Ruchi Soya’s transition to the fast-moving consumer goods (FMCG) category is likely to be accelerated as a result of this. After regulatory permissions, the name of Ruchi Soya Industries Ltd would be changed to Patanjali Foods Ltd. Ghee, honey, spices, juices, and wheat are among the 21 products in the acquired food industry.

Buy Prime Test Series for all Banking, SSC, Insurance & other exams

KEY POINTS:

  • According to a company source, Ruchi Soya will pay Patanjali Ayurved an annual royalty estimated at 1% of the gross turnover of the items under the transfer agreement.
  • It’s a debt-free transaction, with Ruchi Soya paying for it with internal accruals.
  • With effect from, the board of Patanjali Ayurved has approved the transfer of food business to Ruchi Soya Industries.
  • In trading, Ruchi Soya’s shares closed 10% higher at Rs 1,192.15 per share.
  • Ruchi Soya will receive the production units in Padartha (Haridwar, Uttarakhand) and Newasa as part of the agreement (Maharashtra).
  • Employees, assets, contracts, licences and permits, distribution network, and consumers associated to Patanjali Ayurved’s food retail business will all be transferred.

About Ruchi Soya:

Ruchi Soya is India’s largest producer of edible oil. Patanjali Ayurved purchased it in 2019. According to a survey issued by Deloitte Touche Tohmatsu, Ruchi Soya was rated 175 among the top 250 consumer products businesses in the Global Powers of the Consumer Products Industry 2012.

Find More Business News Here

Patanjali Food Business will be acquired by Ruchi Soya for Rs. 690 crore_40.1Patanjali Food Business will be acquired by Ruchi Soya for Rs. 690 crore_50.1

Leave a comment

Your email address will not be published. Required fields are marked *