Listed Patanjali Foods To Buy Patanjali’s Home & Personal Care Business For Rs. 1,100 Crore

There has been consolidation among the many arms of the Patanjali group.

Publicly-listed Patanjali Foods will buy the home and personal care business of Patanjali Ayurved for Rs, 1,100 crore. The acquisition will help Patanjali Foods, which until now primarily focused on oils, to become an FMCG company. The two companies have also agreed to enter into a licensing agreement, permitting Patanjali Foods to use the trademarks and associated intellectual property rights owned by Patanjali Ayurved. The deal is subject to the approval of shareholders, lenders and other necessary approvals.

“The transfer of the home and personal care business has been mutually negotiated between the company and Patanjali Ayurved (basis valuation exercises conducted by independent valuers) for a lump sum consideration of Rs 1,100 crore only..the acquisition 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,” Patanjali Foods said.

The move allows Patanjali Foods to have an even bigger pie of the overall Patanjali brand. Patanjali Foods had formerly been known as Ruchi Soya. Ruchi Soya had been facing financial difficulties, and was dragged to insolvency court by its creditors. Two companies had bid to buy the struggling business — Patanjali Ayurved and Adani Wilmar. Patanjali won the bid, and acquired Ruchi Soya for Rs. 4,300 crore.

Patanjali Foods is currently primarily in the business of processing of oil-seeds and refining of oil for edible use. It runs oil brands including Ruchi Gold, Mahakosh, Sunrich, Nutrela and Patanjali, and also manufactures the popular Nutrela brand of soya chunks. The company grows its own oil-yielding plants, and is the largest edible oil player in India in terms of cultivated area. Its revenue was Rs. 31,721 crore in FY24, and it reported a profit of Rs. 765 crore.

This company has now acquired the non-food assets of Patanjali Ayurveda. These includes the company’s dental care, skin care, home care, and hair care products. As a result Patanjali’s soaps, shampoos, its popular toothpaste, agarbattis and other products will be a part of the listed Patanjali entity. These products enjoy widespread brand recognition, and will help Patanjali Foods grow its topline.

Patanjali Foods’ stock was up 7.45 percent in trade today.