Patanjali Acquisition: Patanjali to Acquire Non-Food Products Parent Firm

Mumbai: The board of Patanjali Foods (formerly known as Ruchi Soya Industries) has approved the acquisition of the home and body care business of parent company Patanjali Ayurved for Rs 1,100 crore, the company said on Monday. The acquisition will expand Patanjali Food’s product portfolio, which currently largely consists of edible oils. The HPC Patanjali Ayurved business includes dental, skin, home and hair care. The transaction will be completed through a sale of inheritance and the payment will be made in five tranches, Patanjali Foods said in a stock exchange filing. “The acquisition will bring key synergies in terms of brand equity and enhancements, product innovation, cost optimisation, infrastructure and operational efficiencies and a positive impact on market share,” the company said. The company and Patanjali Ayurved have agreed to enter into an agreement to allow Patanjali Foods to use the trademarks and related intellectual property rights of the latter relating to the company’s HPC product portfolio. “A 20-year license agreement at a 3% turnover-based royalty along with other terms and conditions has been agreed between the company and Patanjali Ayurved,” the company said. The Baba Ramdev-led company held a 32.4% stake in Patanjali Foods since FY24.

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