A hoarding with an image of Baba Ramdev is seen inside a Patanjali store in Ahmedabad.
Credit: Reuters Photo
New Delhi: Patanjali Foods Ltd, which is mainly into edible oils, on Friday said it will evaluate a proposal to acquire the non-food business of promoter group Patanjali Ayurved, led by Baba Ramdev.
In a regulatory filing, Patanjali Foods informed that its board has discussed the initial proposal received from Patanjali Ayurved Ltd for a sale of the latter's non-food business undertaking to the company.
"The board accorded its in-principle approval for evaluating the most efficient mode of enhancing synergies with Patanjali Ayurved non-food portfolio in any manner on an arm's length basis," the filing said.
The board also authorised officials to carry out due diligence, appoint professionals, negotiate the terms and conditions of the proposal, and report the findings to the Audit Committee and the board for further consideration.
To strengthen its product portfolio, Patanjali Foods acquired the biscuits business of Patanjali Natural Biscuits Pvt Ltd for Rs 60.03 crore in May 2021.
The company also acquired the noodles and breakfast cereals business for Rs 3.50 crore in June 2021 and the food business in May 2022 for Rs 690 crore from Patanjali Ayurved.
The proposal received from Patanjali Ayurved "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", Patanjali Foods said.
Incorporated in 1986, Patanjali Foods Limited (formerly known as Ruchi Soya Industries Ltd) is one of the leading FMCG players.
The company operates in edible oils, food & FMCG and wind power generation segments via a bouquet of brands like Patanjali, Ruchi Gold, Nutrela, etc.
Deccan Herald is on WhatsApp Channels | Join now for Breaking News & Editor's Picks