Patanjali Foods mulls acquisition of Patanjali Ayurved's non-food business

Patanjali Foods mulls acquisition: Patanjali Foods Ltd, predominantly known for its edible oils, announced on Friday its intention to assess a proposal to acquire the non-food segment of its parent company, Patanjali Ayurved, led by Baba Ramdev. According to a regulatory filing, Patanjali Foods' board has deliberated over an initial proposal forwarded by Patanjali Ayurved Ltd regarding the potential sale of its non-food division to the former.

"The board has given its preliminary approval to explore avenues for enhancing synergies with Patanjali Ayurved's non-food portfolio in a fair and independent manner," the filing stated. Additionally, the board has empowered officials to conduct thorough due diligence, engage professionals, negotiate terms and conditions, and present their findings to the Audit Committee and the board for further deliberation.

In May 2021, it acquired the biscuits business of Patanjali Natural Biscuits Pvt Ltd for Rs 60.03 crore. Subsequently, in June 2021, it purchased the noodles and breakfast cereals business for Rs 3.50 crore, followed by the acquisition of the food business in May 2022 for Rs 690 crore from Patanjali Ayurved.

Patanjali Foods expressed optimism regarding the potential synergies offered by the proposal from Patanjali Ayurved, anticipating it to enrich their product portfolio with various brands and contribute to revenue and EBITDA growth.

Established in 1986, Patanjali Foods Limited, formerly known as Ruchi Soya Industries Ltd, stands as a prominent player in the FMCG sector. The company operates across edible oils, food & FMCG, and wind power generation segments, boasting a diverse portfolio of brands such as Patanjali, Ruchi Gold, and Nutrela.

(with PTI inputs)