CHENNAI: Fast-moving consumer goods (FMCG) majors Ruchi Soya Industries and Baba Ramdev-backed Patanjali have inked an exclusive sales and distribution arrangement for the entire range of Patanjali edible oil in large packs. Ruchi Soya shares closed the day up 11.69 per cent on the BSE Sensex following the announcement.
According to the companies, under the terms of the MoU, Ruchi Soya will use its own distribution network to sell the complete range of Patanjali edible oils in large packs across India. Ruchi Soya also has exclusive distribution rights for the existing as well as future range of Patanjali edible oils in large packs. Ruchi Soya’s network spans more than 10 lakh outlets across 4,000 towns in general trade, according to the firm.
“Not only will Ruchi Soya’s widespread distribution network ensure availability and sales of Patanjali’s large packs range; this agreement will further lead to better utilisation of Ruchi’s manufacturing capacity and significantly contribute to cost-efficient operations and augment profitability,” said Dinesh Shahra, managing director & CEO, Ruchi Soya Industries.
The arrangement gains significance, according to Satendra Aggarwal, COO, Ruchi Soya Industries. “The significance of this agreement can be ascertained from the fact that Patanjali is eyeing sales of Rs 20,000 crore by 2020. For Ruchi Soya, this will enhance profitability; boost productivity and efficiencies of our sales and distribution system across the country due to enhanced volume throughput,” he pointed out.