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1. Patanjali Ayurved Ltd To Sell Its Food Retail Business To Ruchi Soya
In a bid to strengthen its position in the fast-moving consumer goods (FMCG) sector, yoga guru and businessman Baba Ramdev’s Patanjali Ayurved Ltd will sell its food retail business to listed subsidiary Ruchi Soya. The transaction is valued at Rs690 crore and will be completed by July 15, 2022, according to a company filing. The acquisition will accelerate Ruchi Soya’s transition into a leading FMCG company, the filing added. The acquisition will involve the transfer of 21 major products, including ghee, honey, spices, juices, and atta. The acquisition will also include employees, contracts, licenses and permits, distribution network, customers, and other assets related to the Food Retail Business Undertaking of PAL.
The move will allow the company to accelerate its growth, and increase revenue and EBIDTA, the company said in a statement. The deal will also help the company to boost its e-commerce business and expand its retail presence in the country. Moreover, the acquisition will help it to reduce inventory costs and enhance its profitability.
Ruchi Soya will acquire the entire business of PAL, including manufacturing, packaging, labeling, and retail trading of certain food products along with the manufacturing plants located at Padartha district in Uttarakhand, Haridwar in Uttarakhand, and Newasa in Maharashtra. The acquisition will also include the transfer of employees, and distribution networks.
In the past year, the company has made several strategic investments. It has partnered with VeChain, a blockchain software developer, to create the world’s first shared ledger for supply chains. It has also acquired stakes in Fyre Media, a technology company that specializes in organizing music festivals for the wealthy, and BitSE, a blockchain platform that allows companies to share information.
The company operates in the following segments: Extractions, Vanaspati, Oils, Food Products, and Wind Power Generation. The Extraction segment offers various types of extractions. The Vanaspati segment provides bakery fats and table spreads. The Oils segment produces crude and refined oils. The Food Products segment offers textured soya protein, soya flour, and fruit juices. The Wind Power Generation segment generates electricity through wind mills. The company was founded in 1989 and is headquartered in Mumbai, India.
2. Ruchi Soya Acquires Food Retail Business Of Patanjali Ayurved
The food retail business of Patanjali Ayurved will be acquired by Ruchi Soya for Rs 690 crore. The deal is expected to be completed by July 15. The acquisition will boost Ruchi Soya’s presence in the FMCG sector, especially in the edible oil and staples category. It also provides access to Patanjali’s extensive distribution network in India.
The move comes as the demand for healthy products continues to rise across India. The growth is driven by increasing household incomes, a rise in food processing and urbanisation rates, and changes in consumer dietary habits. Moreover, the demand for healthier edible oils is boosted by rising awareness of the health benefits of low-cholesterol and organic products.
As a result, the Indian edible oil industry is experiencing rapid expansion. Currently, the market is worth more than $18 billion and is projected to reach $37 billion by 2022. The market is expected to grow at an annual rate of 10 per cent.
In order to capture this opportunity, many companies are investing in new production facilities and expanding their existing ones. As a result, the number of edible oil plants in India has grown rapidly over the past decade. This expansion has been aided by the development of high-capacity refineries, improved technology, and government support.
Earlier this year, the Ramdev-led Patanjali group had raised Rs 4,300 crore through a follow-on public offer (FPO) as part of its plans to become debt-free. A portion of the proceeds from this FPO was used to repay debt, which had accumulated to over Rs 3,300 crore.
The board of Ruchi Soya has approved the acquisition of the food business of Patanjali Ayurved, as per a stock exchange filing. As a result, the company will be renamed as Patanjali Foods Limited. The acquisition will allow the company to benefit from Patanjali’s sourcing capabilities, technical know-how, and strong distribution network in India. It will also leverage the strong promoter pedigree of Patanjali group, which is a leading FMCG and wellness-oriented brand in the country. Moreover, the company will gain access to Patanjali’s experience in manufacturing of FMCG products and in the field of oil palm plantations.
3. Ruchi Soya Acquires Food Retail Business Of Patanjali Ayurved
The acquisition will help Patanjali expand its portfolio of organic and healthy foods. It also aligns with the company’s mission to promote natural and ayurvedic products. The move will strengthen the company’s position in the FMCG industry and improve its financial performance.
The transaction is valued at Rs 690 crore, which includes the transfer of employees, assets (excluding the food business’s brand name, trademarks, designs, copyrights), current assets (excluding debtors, vehicles, cash and bank balance), contracts, licenses and permits, distribution network and customers related to the food retail business. It will be financed through internal accruals and loans from the company’s existing lenders.
In addition, the company is planning to acquire additional agri-based businesses to enhance its presence in the food and consumer goods sector. This expansion will allow the company to strengthen its position in the FMCG industry and increase its revenue.
Previously, the company was engaged in the business of processing oilseeds and refining crude oil for edible use. However, due to a series of controversies and scandals, the company’s financial accounts began showing massive losses. It was also unable to pay its loans, which led to the accumulation of unsurvivable debts. In the last few years, the company has undertaken numerous rebranding operations to reduce expenses and diversify its product range. The company also partnered with Adani and Wilmar to completely revamp its manufacturing processes. The company’s COO stated that the company is reducing expenses and diversifying its portfolio of products to attract more consumers.
The company is undergoing a complete transformation to become a leading FMCG brand in India. It has invested millions of rupees in rebranding and expanding its infrastructure. It has also made strategic partnerships with other renowned companies in the world to bring in technology and best practices. This will help the company to establish itself as a trusted and credible global player. It is also working on a new distribution and imports network for its products. The new network will ensure that the company’s products reach the consumer at an affordable price. The company is also implementing a new supply chain model to reduce costs and improve efficiency.
4. Ruchi Soya Acquires Food Retail Business Of Patanjali Ayurved
The acquisition of the food retail business by Ruchi Soya will boost its presence in the FMCG sector and allow it to compete with more established players. It will also enable it to increase brand recognition and expand its customer base. The acquisition is expected to boost the financial performance of the company. However, it may have some downsides as well.
The transaction will involve the acquisition of the food retail business of Patanjali Ayurved, which includes 21 major products such as ghee, honey, spices, juices, and atta. The deal will be valued at Rs 690 crore on a slump sale basis, according to Ruchi Soya. It will also include the company’s manufacturing plants located in Padartha, Haridwar, and Newasa, Maharashtra. The acquisition is expected to be completed by July 15.
Ruchi Soya’s stock has surged as much as 8 per cent on Monday after the news of the acquisition was announced. The company has also received approval from the Registrar of Companies for changing its name to Patanjali Foods. The name change will be effective from June 24.
The rebranding and acquisition will have significant impacts on the company’s employees and organizational structure. It will likely result in changes to job roles and responsibilities for existing employees, as well as the hiring of new staff to support the transition. The acquisition will also have an impact on suppliers and distributors of Ruchi Soya. It may require them to review their contracts and agreements with the company to ensure they are up to date.
The rebranding and acquisition of the food retail business of Patanjali will have significant impacts on the company’s customers, suppliers, and distributors. It will likely require them to revise their contracts and agreements with the company, which could lead to increased costs and lower profit margins. It will also require them to adapt to the new company’s policies and practices. The acquisition of the food retail business by Ruchi will also have a negative impact on its competitors, as it will reduce competition in the market and limit their opportunities for growth.
