Ruchi Soya to buy Patanjali Food Business for 690 crores

Tags: Economics/Business National News

Edible oil company Ruchi Soya has announced that it will buy the food division of Patanjali Ayurved for Rs 690 crore.

• Ruchi Soya Industries Limited will be renamed as Patanjali Foods Limited after regulatory approval.

• The 21 products from the food industry acquired include ghee, honey, spices, juices and wheat.

• Key points

• According to a company source, Ruchi Soya will pay an annual royalty of 1% of the gross turnover of the items to Patanjali Ayurved under the transfer agreement.

• The Board of Patanjali Ayurved has approved the transfer of the food business to Ruchi Soya Industries.

• Ruchi Soya will receive production units in Padarth (Haridwar, Uttarakhand) and Nevasa (Maharashtra) as part of the agreement.

• Employees, assets, contracts, licences and permits, distribution network and consumers associated with Patanjali Ayurved's food retail business will all be transferred.

• Patanjali Group had acquired Ruchi Soya in 2019 for Rs 4,350 crore through insolvency proceedings.