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.
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.
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