The board of Patanjali Foods Limited has given an in-principle go-ahead to consider a proposal to acquire the non-food businesses run by the Patanjali Ayurved Limited at its meeting held on Friday.
The board gave the nod to evaluate the most efficient mode of enhancing synergies with Patanjali Ayurved Limited’s non-food portfolio in any manner on an arm’s length basis, the company said in a press release. A three-member committee has been formed to study the proposal.
The company notified the Bombay Stock Exchange and the National Stock exchange that it has been authorised to carry out due diligence and appoint professionals to negotiate the terms and conditions of the deal. Once the negotiations are finalised the terms would have to be conveyed to the board for its final approval.
Patanjali Food Limited had acquired the Indore-based Ruchi Soya Industries Limited in 2019 and the new company had in 2021 and 2022 acquired the biscuits, noodles, breakfast cereals and other food business of Patanjali Ayurved Limited spending over Rs. 700crore.
Incorporated in 1986, the company deals with edible oils, food and fast-moving consumer good (FMCG) and also wind power generation.
“The proposal received from PAL may offer synergies to the company’s product portfolio with an array of brands and contribute to the growth in terms of revenue and EBITDA (earnings before interest, taxes, depreciation and amortization),” the stock filing by the company read.
Before the incorporation, Ruchi Soya products were sold under brands like Ruchi Gold, Mahakosh, Sunrich, Nutrela, Ruchi Star and Ruchi Sunlight. The food products from the Patanjali Foods Limited are old under Patanjali, Ruchi Gold, Nutrela and other brand names.
Patanjali Foods Limited is focussed on investing in building brands and expanding its product portfolio. Food products from the company stable are sold across multiple categories, price points and segments to cater to a wide spectrum of consumer preferences.