Patanjali Foods to buy Patanjali Ayurved's non-food business for Rs 1,100 cr
Patanjali Foods to buy Patanjali Ayurved's non-food business for Rs 1,100 cr
Patanajali Foods on July 1 said that its board has approved the proposal to buy its parent company Patanjali Ayurved's non-food business for Rs 1,100 crore in tranches.
The acquisition as a going concern on a slump sale basis will result in expansion of the product portfolio of the company, it said in a regulatory filing.
Patanjali Ayurved is co-founded by Ramdev, while Balakrishna is the Managing Director of the company.
Its non-food business presently caters to dental care, skin care, home care, and hair care. "This strategic initiative for acquisition of s Home and Personal Care (HPC) business shall strengthen the company’s existing FMCG product portfolio with an array of marquee brands that will contribute to significant growth in revenue and EBITDA," Patanjali Foods said.
Separately, a licensing arrangement for a 3 percent turnover based fee along with other conditions has been agreed between the companies.
Patanjali Ayurved owned a 32.4 percent stake in Patanjali Foods as of March 31, 2024
The acquisition will lead to a consolidation of ‘Patanjali’ brand FMCG products portfolio. It will bring along with it multiple key synergies in terms of brand equity and enhancements, product innovations, cost optimisation, infrastructure & operational efficiencies and positive impact on market share, the FMCG company added.
Pursuant to the approval of the Board of Patanjali Foods, the company shall now take necessary steps to execute the definite agreements in connection with the acquisition as well as apply for necessary approvals integral to the transaction.
Patanjali Ayurved Limited was advised by Jefferies India Private Limited on the transaction.
Meanwhile, shares of Patanjali Foods on July 1 closed 6.81 percent higher at Rs 1,699.65 apiece on BSE.