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 because 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.
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. He said Ruchi Soya would pay the acquisition through internal accruals, as it is a debt-free transfer.
“The acquisition is valued at Rs 690 crore on a slump sale basis based on all of the food division’s fixed assets and related current assets,” the business stated in a stock exchange filing.
With effect from May 9, the board of Patanjali Ayurved has approved the transfer of the food business to Ruchi Soya Industries. Ruchi Soya’s shares closed 10% higher at Rs 1,192.15 per share in Wednesday’s trading.
