NEW DELHI: Ruchi Soya Industries on Wednesday will buy Patanjali Ayurved’s food retail business to accelerate its transition to a leading FMCG company. The company, in a stock exchange filing said it will change its name to Patanjali Foods. The change in name is subject to approval of members, Ministry of Corporate Affairs and other regulatory authorities.
“Business transfer agreement with Patanjali Ayurved to acquire the food retail business undertaking of Patanjali Ayurved (PAL), which consists of manufacturing, packaging, labelling and retail trading of certain food products, along with manufacturing plants located at Padartha, Haridwar, and Newasa, Maharashtra, as a going concern on a slump sale basis, subject to approval of shareholders and other authorities as may be required,” the company said.
The acquisition is valued at a fair market value (Net) of Rs 690 crore based on all the fixed assets of food division & respective current assets on a slump sale basis. “The strategic initiative shall strengthen its food product portfolio with array of brands and contribute to growth in terms of revenue and EBIDTA,” it said.
The transaction includes transfer of employees, assets (excluding Patanjali’s brand, trademarks, designs and copyrights), current assets (excluding debtors, vehicles, cash and bank balance) contracts, licenses and permits, distribution network, customers related to the Food Retail Business Undertaking of Patanjali Ayurved.