New Delhi [India], The board of directors of Patanjali Foods Limited on Monday said it has approved Patanjali Ayurved Limited's proposal to acquire its home and personal care (HPC) business.
In his opinion, this will accelerate the company's transition into a leading consumer goods company.
Patanjali Ayurved's home and personal care business currently has strong brand equity in the Indian consumer goods space and enjoys a loyal consumer base across the country.
It currently serves four key segments: dental care, skin care, home care and hair care.
According to a company statement, this strategic initiative for the acquisition of home and personal care business will strengthen the company's existing FMCG product portfolio with a range of prominent brands and will also contribute to growth in terms of revenue and EBITDA.
According to the statement, Patanjali Foods is preparing to acquire the entire personal and home care business of Patanjali Ayurved on a going concern basis, and includes all assets and liabilities attributable to the business, relevant employees, distribution network , the contracts, licenses, permits, consents and integral approvals of this operation (hereinafter referred to as the "Commercial Commitment").
The statement notes that the closing of the acquisition is subject to the satisfaction of several conditions precedent that are largely regulatory approvals required for the transfer of the business venture.
Accordingly, they also agreed to enter into a license agreement allowing the use of the trademarks and associated intellectual property rights, owned by Patanjali Ayuved, which relate to the product portfolio of the personal and home care business.
The transfer of HPC business has been mutually negotiated between the company and PAL (base valuation exercises carried out by independent valuers) for a lump sum of Rs 1,100 crore, which will be subject to customary adjustments on the closing date and elsewhere. established terms. in the business transfer agreement to be entered into between the Company and PAL.
"The acquisition will lead to a consolidation of the consumer goods product portfolio of the 'Patanjali' brand. The acquisition will bring with it multiple key synergies in terms of brand value and enhancements, product innovations, cost optimization, infrastructure and operational efficiency and positive impact on the market share," the statement added.
Incorporated in 1986, Patanjali Foods Limited (formerly known as Ruchi Soya Industries Limited) is one of India's leading consumer goods players. The company is present in the edible oils, food and consumer goods and wind power generation segments through a set of brands like Patanjali, Ruchi Gold, Nutrela, etc.
In his opinion, this will accelerate the company's transition into a leading consumer goods company.
Patanjali Ayurved's home and personal care business currently has strong brand equity in the Indian consumer goods space and enjoys a loyal consumer base across the country.
It currently serves four key segments: dental care, skin care, home care and hair care.
According to a company statement, this strategic initiative for the acquisition of home and personal care business will strengthen the company's existing FMCG product portfolio with a range of prominent brands and will also contribute to growth in terms of revenue and EBITDA.
According to the statement, Patanjali Foods is preparing to acquire the entire personal and home care business of Patanjali Ayurved on a going concern basis, and includes all assets and liabilities attributable to the business, relevant employees, distribution network , the contracts, licenses, permits, consents and integral approvals of this operation (hereinafter referred to as the "Commercial Commitment").
The statement notes that the closing of the acquisition is subject to the satisfaction of several conditions precedent that are largely regulatory approvals required for the transfer of the business venture.
Accordingly, they also agreed to enter into a license agreement allowing the use of the trademarks and associated intellectual property rights, owned by Patanjali Ayuved, which relate to the product portfolio of the personal and home care business.
The transfer of HPC business has been mutually negotiated between the company and PAL (base valuation exercises carried out by independent valuers) for a lump sum of Rs 1,100 crore, which will be subject to customary adjustments on the closing date and elsewhere. established terms. in the business transfer agreement to be entered into between the Company and PAL.
"The acquisition will lead to a consolidation of the consumer goods product portfolio of the 'Patanjali' brand. The acquisition will bring with it multiple key synergies in terms of brand value and enhancements, product innovations, cost optimization, infrastructure and operational efficiency and positive impact on the market share," the statement added.
Incorporated in 1986, Patanjali Foods Limited (formerly known as Ruchi Soya Industries Limited) is one of India's leading consumer goods players. The company is present in the edible oils, food and consumer goods and wind power generation segments through a set of brands like Patanjali, Ruchi Gold, Nutrela, etc.
