Patanjali Foods Acquires Home & Personal Care Business
Mumbai: Exciting news coming from the board of Patanjali Foods (previously known as Ruchi Soya Industries) as they have approved the acquisition of the home and personal care business of parent company Patanjali Ayurved for a whopping Rs 1,100 crore. This strategic move aims to diversify Patanjali Food’s product portfolio which currently focuses mainly on edible oils.
The acquired HPC business of Patanjali Ayurved covers a wide range of products including dental care, skin care, home care, and hair care, which will be a valuable addition to Patanjali Foods’ offerings. The deal is set to be completed through a slump sale with payment to be made in five tranches according to an exchange filing by Patanjali Foods.
“This acquisition will not only bring key synergies in terms of brand equity, product innovation, cost optimization, infrastructure efficiency, and operational enhancements but also have a positive impact on market share,” the company stated.
As part of the agreement, Patanjali Foods will have access to trademarks and associated IP rights owned by Patanjali Ayurved related to the HPC business. A 20-year licensing agreement for a 3% turnover-based fee has been agreed upon between the two companies.
Patanjali Foods, led by Baba Ramdev, currently holds a 32.4% stake in Patanjali Foods as of FY24. The future looks bright for this dynamic company with the new addition of the home and personal care business to its already impressive product line.