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Ruchi Soya Industries has entered into an agreement with Patanjali Ayurved Limited (PAL) to acquire the latter's food retail business undertaking which consists of manufacturing, packaging, labelling and retail trading of certain food products, along with manufacturing plants located at Padartha in Haridwar, and Newasa in Maharashtra, subject to approval of shareholders and other authorities.
Ruchi Soya said that the acquisition will result in expansion of its existing product portfolio. The amount of consideration for the acquisition is Rs 690 crore on a slump sale basis and the indicative time period for completion of the acquisition is 15 July 2022.
"The transaction shall consist of transfer of employees, assets (excluding Patanjali's brand, trademarks, designs and copyrights), current assets (excluding debtors, vehicles, cash and bank balance) contracts, licenses and permits, distribution network, customers related to the Food Retail Business Undertaking of Patanjali Ayurved," Ruchi Soya Industries said in an exchange filing on Wednesday.
Ruchi Soya said that its board has decided to change the name of company from "Ruchi Soya Industries Limited" to "Patanjali Foods Limited" subject to statutory and regulatory approvals.
Ruchi Soya is recognized amongst the largest branded oil packaged food company. Its ‘Ruchi Gold' brand has a market leadership position, on account of being India's highest selling palm oil brand and also the pioneers and largest manufacturers of soya foods in India under the brand name of 'Nutrela'. It has launched its nutraceuticals under the joint branding of 'Patanjali and Nutrela'.
Net profit of Ruchi Soya Industries rose 2.92% to Rs 234.07 crore on 40.65% rise in net sales to Rs 6280.46 crore in Q3 December 2021 over Q3 December 2020.
Shares of Ruchi Soya Industries surged 9.59% to Rs 1186.85 on the BSE.
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