NEW DELHI: Patanjali Group-owned Ruchi Soya will become debt-free by next month, said Baba Ramdev as the company began its further public offer (FPO) on Thursday aiming to raise Rs 4,300 crore.
According to Ramdev, proceeds from the FPO will be used to repay Ruchi Soya’s debt apart from using it for the company’s expansion. Ruchi Soya has about Rs 3,300 crore of debt from commercial lenders.
Ramdev said after the successful re-listing of the Ruchi Soya, the Haridwar-based Group has plans to list Patanjali Ayurved and other entities such as Divya Pharmacy. However, he did not disclose the timeline for it. He added that the Group’s target is to become India’s number one food, FMCG, and agriculture company in the next five years.
“We have set a target to make Patanjali Ayurved and Ruchi Soya, India’s largest food and FMCG company in the next five years…Our combined turnover of Patanjali group, including Ruchi Soya, is over Rs 35,000 crore and it is ranked second in the FMCG and food space, after HUL,” said Ramdev.
HUL (Hindustan Unilever) is India’s leading company in FMCG Company with a revenue of Rs 45,996 crore in FY21, while Patanjali Group, which Includes Ruchi Soya and Patanjali Ayurved, had posted a turnover of around Rs 30,000 crore last fiscal.
Ruchi Soya, which was acquired by Patanjali in 2019 through an insolvency process for Rs 4350 crore, alone had a revenue of nearly Rs 16,400 crore in FY21 while Patanjali Ayurved had posted a turnover of Rs 9,783.81 crore in the same fiscal. Ruchi Soya on Wednesday raised Rs 1,290 crore from anchor investors and believes the FPO would be a huge success.