To strengthen its position in the FMCG sector, Ruchi Soya, a well-known edible oil producer, has struck a deal with Baba Ramdev’s Patanjali Biscuits business. The acquisition work will be completed in the next two months.
Ruchi Soya will acquire Patanjali Biscuit business
Ruchi Soya, a company known as the largest producer of edible oil in India, will soon take over Baba Ramdev’s Patanjali Biscuits business. For this, Ruchi Soya Industries has signed a deal with Patanjali Natural Biscuits Private Limited (PNBPL) on Tuesday for 60.02 crores. In this, the Board of Directors of the company has approved the signing of the Business Transfer Agreement (BTA) regarding this agreement with PNBPL. The acquisition will be completed in the next two months.
The purpose of the acquisition is to expand the product portfolio of the company’s existing business. Soya Industries is interested in this, saying that this deal will help the company to strengthen its position in the FMCG sector. This is a deal between Ruchi Soya and PNBPL for a non-competitive arrangement. Under this, PNBPL and its related affiliates including Patanjali Ayurved Limited cannot directly or indirectly enter into any competitive business of biscuits in India.
Payment will be made in two installments
Payment under the agreement will be in two installments. The first Bhagutan total purchase consideration of 15 crores will be made on or before the closing date as payment. While the remaining 45.01 crore will be paid within 90 days. The turnover of PNBPL has been Rs 448 crores in the year 2019-20.
In 2019, Patanjali Ayurved bought Ruchi Soya
This interest is one of the largest producers of soy production in India. It has many major brands of its own including brands like Nutrilla, Mahakosh, Ruchi Gold, Ruchi Star and Sunrich. Ruchi Soya was once in debt. In such a situation, it was bought by Pantjali Ayurveda in the year 2019. For this, Patanjali himself had to take a loan of Rs 3200 crore. Patanjali had borrowed Rs 1,200 crore from SBI, Rs 400 crore from Syndicate Bank, Rs 700 crore from Punjab National Bank, Rs 600 crore from Union Bank of India and Rs 300 crore from Allahabad Bank.
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