New Delhi: Patanjali Foods Ltd, which is mainly into edible oils, on Friday said it will evaluate a proposal to acquire the non-food business of Baba Ramdev-led promoter group Patanjali Ayurveda.
In a regulatory filing, Patanjali Foods said its board has discussed the preliminary proposal received from Patanjali Ayurved Ltd for the sale of its non-food business venture to the company.
"The board has given its in-principle approval to evaluate the most efficient way to enhance synergy with Patanjali Ayurveda non-food portfolio on an arm's length basis," the filing said.
The board also authorized executives to conduct due diligence, hire professionals, negotiate the terms and conditions of the offer, and report the findings to the audit committee and the board for further consideration.
To strengthen its product portfolio, Patanjali Foods acquired the biscuits business of Patanjali Natural Biscuits Pvt Ltd for Rs 60.03 crore in May 2021.
The company also acquired noodles and breakfast cereals business for Rs 3.5 crore in June 2021 and food business from Patanjali Ayurved for Rs 690 crore in May 2022.
The offer from Patanjali Ayurveda "may offer synergy to the company's product portfolio with a range of brands and contribute to growth in terms of revenues and EBITDA", Patanjali Foods said.
Incorporated in 1986, Patanjali Foods Limited (formerly known as Ruchi Soya Industries Limited) is one of the leading FMCG players.
The company operates in edible oil, food & FMCG and wind power generation sectors through brands like Patanjali, Ruchi Gold, Nutrela etc.
In a regulatory filing, Patanjali Foods said its board has discussed the preliminary proposal received from Patanjali Ayurved Ltd for the sale of its non-food business venture to the company.
"The board has given its in-principle approval to evaluate the most efficient way to enhance synergy with Patanjali Ayurveda non-food portfolio on an arm's length basis," the filing said.
The board also authorized executives to conduct due diligence, hire professionals, negotiate the terms and conditions of the offer, and report the findings to the audit committee and the board for further consideration.
To strengthen its product portfolio, Patanjali Foods acquired the biscuits business of Patanjali Natural Biscuits Pvt Ltd for Rs 60.03 crore in May 2021.
The company also acquired noodles and breakfast cereals business for Rs 3.5 crore in June 2021 and food business from Patanjali Ayurved for Rs 690 crore in May 2022.
The offer from Patanjali Ayurveda "may offer synergy to the company's product portfolio with a range of brands and contribute to growth in terms of revenues and EBITDA", Patanjali Foods said.
Incorporated in 1986, Patanjali Foods Limited (formerly known as Ruchi Soya Industries Limited) is one of the leading FMCG players.
The company operates in edible oil, food & FMCG and wind power generation sectors through brands like Patanjali, Ruchi Gold, Nutrela etc.
