MUMBAI: Edible oil major c will bring the entire foods business of its promoter Patanjali Ayurved Ltd (PAL) in its fold in next three-four months, subject to regulatory approvals, a top official told TNIE on Monday. The company also said it has proposed to rename itself to Patanjali Foods Ltd or any other name approved by the Registrar of Companies.
“The Ruchi Soya board on Sunday took a number of decisions that included drawing synergies most effectively with the promoter group’s food portfolio and authorising the company officials to complete the transaction following all the due processes,” Sanjeev Asthana, CEO, Ruchi Soya said, adding that the proposed rechristening reflected the company’s ownership.
When asked about the cost of integration, Asthana said the process of appointing merchant bankers and valuing the business would be undertaken in due course. “We are confident of securing the necessary regulatory approvals and bringing the food portfolio in our fold over the next three to four months,” Asthana added.
Ruchi Soya acquired the noodles, breakfast cereals and biscuits business from Patanjali last year. The merger of the PAL’s foods business underscores Patanjali group’s vision of becoming a serious contender in the FMCG foods segment comprising rivals like Nestle , Britannia , ITC , HUL, etc. PAL acquired Ruchi Soya for Rs 4,350 crore through the insolvency process in 2019. Some of the well-known foods being sold by PAL that will move to Ruchi Soya include Chyawanprash, aloe vera juice and physically refined oils. Non-foods businesses like ayurvedic medicines, home-care and personal-care procedures will continue to vest with Patanjali Ayurved.
The company’s stock surged as much as 8% on the news before closing flat at Rs 918 as the market declined sharply in the last 30 minutes of trade. Ruchi Soya had posted a net profit of Rs 234.07 crore on revenue of Rs 6,301 crore in Q3FY22. Currently, 80% of its revenues come from edible oils. Asthana said the company aimed at growing the foods portfolio at a CAGR of 10-15% each year. Recently, Ruchi Soya had raised Rs 4,300 crore through follow on public offer to meet market regulator Sebi’s minimum public shareholding norm of 25%.