Patanjali Foods Ltd, which is mainly into edible oils, said that it will evaluate a proposal to acquire the non-food business of promoter group Patanjali Ayurved, led by Baba Ramdev. Patanjali Foods stated in a regulatory filing that its board reviewed the initial proposal it received from Patanjali Ayurved Ltd to sell the latter’s non-food business endeavour to the company.
“The board granted preliminary approval to explore the most efficient method of enhancing synergies with the non-food portfolio of Patanjali Ayurved, ensuring a fair and independent evaluation,” stated the filing.
The board also authorized officials to conduct due diligence, engage professionals, negotiate proposal terms, and report their findings to the Audit Committee and the board for further consideration.
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In a move to bolster its product lineup, Patanjali Foods purchased the biscuits business of Patanjali Natural Biscuits Pvt Ltd for INR 60.03 crore in May 2021.
In addition, the company acquired the noodles and breakfast cereals division for INR 3.50 crore in June 2021, followed by the food business in May 2022 for INR 690 crore from Patanjali Ayurved.
Patanjali Foods stated that the proposal from Patanjali Ayurved “has the potential to bring synergies to the company’s product range through a variety of brands, thereby enhancing revenue and EBITDA growth.”
Established in 1986, Patanjali Foods Limited (previously recognized as Ruchi Soya Industries Ltd) stands as a prominent player in the FMCG sector.
The company operates in the edible oil, food and FMCG, and wind power generation domains through a portfolio of brands such as Patanjali, Ruchi Gold, Nutrela, and others.
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