Ruchi Soya Industries is planning to acquire the Patanjali Natural Biscuits. The company, in a regulatory filing, stated that its Board of Directors on 10th May gave consent to the signing of a Business Transfer Agreement (BTA) in this regard with the Patanjali Natural Biscuits Private Limited (PNBPL). The acquisition will be finished in the coming two months at a cost of Rs. 60cr.

The consideration is to be paid in two tranches. Around Rs. 15 crores of the total agreed amounts of consideration will be paid on or before the closing date, while the remaining Rs. 45.01 crore will be paid within 90 days from the closing date, as the reports say. The transaction comprises certain contract manufacturing agreements in addition to the transfer of employees, assets (tangible and intangible), current assets and current liabilities, licenses, and permits (excluding certain assets and liabilities of PNBPL as specified under the BTA). The main goal of the acquisition is to broaden the product portfolio of the existing business of the company.

Ruchi Soya Industries informed that this acquisition is in support of the company’s ongoing strategy to consolidate its position as a leading Fast-moving Consumer Goods (FMCG) player. Ruchi and PNBPL being related parties have nodded to a non-compete arrangement under which PNBPL and its respective affiliates including Patanjali Ayurveda Limited cannot step into any competing business of biscuits in India either directly or indirectly, the specifications added.

Founded in 1985, Ruchi Soya Industries Limited (Ruchi Soya) having its headquarters in Madhya Pradesh, has surfaced as an integrated player in the edible oil business segment having its notable presence across the entire value chain, from farm to fork with secured access to palm oil plantations in our country. This company, through its subsidiaries, is known for the production and sale of edible oils, bakery fats, vanaspati, and soya food mainly in India. In addition, the brand also supplies soya chunks, soya granules, and soya flour products to the market.

Author

A Zoophile scrambling the horizon for surreal subtleties, sheer poetic at heart and quite handy with life.

Write A Comment