MUMBAI: The board of Patanjali Foods (earlier known as Ruchi Soya Industries) has approved the acquisition of the home and personal care business of parent Patanjali Ayurved for Rs 1,100 crore, the company said on Monday.
The acquisition will add to Patanjali Food’s product portfolio which, at present, largely consists of edible oils. Patanjali Ayurved’s HPC business covers dental care, skin care, home care and hair care.The deal will be completed by way of a slump sale and the payment will be made in five tranches, Patanjali Foods said in an exchange filing.
“The acquisition will bring along with it key synergies in terms of brand equity and enhancements, product innovations, cost optimisation, infrastructure & operational efficiencies and positive impact on market share,” the company said.
The firm and Patanjali Ayurved have agreed to enter into a deal permitting Patanjali Foods to use the trademarks and associated IP rights owned by the latter and that relate to the product portfolio of the HPC business. “A 20-year licensing agreement for a 3% turnover-based fee along with other conditions has been agreed between the company and Patanjali Ayurved,” it said. The Baba Ramdev-led company held a 32.4% stake in Patanjali Foods as of FY24.