The Competition Commission of India (CCI) has given the green light to Patanjali Foods‘ acquisition of Patanjali Ayurved‘s home and personal care division in a deal worth INR 1,100 crore. “The͏͏ proposed͏͏ combination͏͏ involves͏͏ the͏͏ acquisition͏͏ of͏͏ Patanjali͏͏ Ayurved͏͏ Ltd’s͏͏ (PAL)͏͏ Home͏͏ and͏͏ Personal͏͏ Care͏͏ (HPC)͏͏ business͏͏ division͏͏ (non-food͏͏ business)͏͏ by͏͏ Patanjali͏͏ Foods͏͏ Ltd͏͏ (PFL),”͏͏ the͏͏ CCI͏͏ noted͏͏ in͏͏ a͏͏ release.
Patanjali Foods’͏͏ Diverse͏͏ Business͏͏ Portfolio:
Patanjali͏͏ Foods͏͏ is͏͏ involved͏͏ in͏͏ the͏͏ processing͏͏ of͏͏ oilseeds,͏͏ refining͏͏ crude͏͏ oil͏͏ for͏͏ edible͏͏ purposes,͏͏ producing͏͏ oil͏͏ meal,͏͏ and͏͏ creating͏͏ food͏͏ products͏͏ from͏͏ soya,͏͏ along͏͏ with͏͏ value-added͏͏ products͏͏ from͏͏ both͏͏ downstream͏͏ and͏͏ upstream͏͏ processing.
Continue͏͏ Exploring:͏͏ Patanjali Foods to͏͏ acquire͏͏ Patanjali Ayurved’s͏͏ home͏͏ and͏͏ personal͏͏ care͏͏ business͏͏ for͏͏ INR͏͏ 1,100͏͏ Cr
The͏͏ company͏͏ is͏͏ also͏͏ involved͏͏ in͏͏ the͏͏ fast-moving͏͏ consumer͏͏ goods͏͏ sector,͏͏ including͏͏ fast-moving͏͏ health͏͏ products͏͏ primarily͏͏ consisting͏͏ of͏͏ food,͏͏ biscuits,͏͏ and͏͏ nutraceuticals.͏͏ Additionally,͏͏ it͏͏ engages͏͏ in͏͏ power͏͏ generation͏͏ from͏͏ wind͏͏ energy͏͏ and͏͏ trades͏͏ in͏͏ various͏͏ products.
Patanjali͏͏ Ayurved͏͏ operates͏͏ in͏͏ the͏͏ production,͏͏ trading,͏͏ packaging,͏͏ and͏͏ labeling͏͏ of͏͏ ayurvedic͏͏ medicines,͏͏ along͏͏ with͏͏ home͏͏ and͏͏ personal͏͏ care͏͏ (HPC)͏͏ products͏͏ such͏͏ as͏͏ dairy͏͏ items͏͏ and͏͏ the͏͏ bulk͏͏ trading͏͏ of͏͏ rice,͏͏ among͏͏ other͏͏ goods.
The͏͏ HPC͏͏ division͏͏ includes͏͏ products͏͏ in͏͏ the͏͏ haircare,͏͏ skincare,͏͏ dental͏͏ care,͏͏ and͏͏ home͏͏ care͏͏ categories.
Strategic͏͏ Move͏͏ to͏͏ Strengthen͏͏ FMCG͏͏ Presence:
In͏͏ July͏͏ of͏͏ this͏͏ year,͏͏ edible͏͏ oil͏͏ giant͏͏ Patanjali͏͏ Foods͏͏ announced͏͏ its͏͏ acquisition͏͏ of͏͏ Baba͏͏ Ramdev-led͏͏ Patanjali͏͏ Ayurved’s͏͏ home͏͏ and͏͏ personal͏͏ care͏͏ business͏͏ for͏͏ INR͏͏ 1,100͏͏ crore,͏͏ as͏͏ part͏͏ of͏͏ its͏͏ strategy͏͏ to͏͏ establish͏͏ itself͏͏ as͏͏ a͏͏ leading͏͏ player͏͏ in͏͏ the͏͏ FMCG͏͏ sector.
Patanjali͏͏ Ayurved͏͏ is͏͏ a͏͏ key͏͏ promoter͏͏ of͏͏ Patanjali͏͏ Foods.͏͏ The͏͏ acquisition͏͏ is͏͏ classified͏͏ as͏͏ a͏͏ related͏͏ party͏͏ transaction͏͏ conducted͏͏ at͏͏ fair͏͏ value͏͏ and͏͏ on͏͏ an͏͏ arm’s͏͏ length͏͏ basis.
Patanjali͏͏ Foods,͏͏ acquired͏͏ by͏͏ PAL͏͏ through͏͏ an͏͏ insolvency͏͏ process,͏͏ reported͏͏ total͏͏ revenue͏͏ of͏͏ INR͏͏ 31,961.62͏͏ crore͏͏ in͏͏ the͏͏ last͏͏ fiscal͏͏ year,͏͏ compared͏͏ to͏͏ INR͏͏ 31,821.45͏͏ crore͏͏ in͏͏ the͏͏ previous͏͏ year.
