Ruchi Soya hits upper circuit on deal with Baba Ramdev's Patanjali
NEW DELHI: Shares of Ruchi Soya hit upper circuit limit of 20 per cent in Monday’s trade after the company said it has signed a deal with Patanjali for refining and packaging of edible oils.
The announcement has offered some relief to Ruchi Soya which owes almost Rs 10,000 crore to banks. The company is also is contesting winding up proceedings initiated by IDFC Bank in Bombay High Court
ET was first to report the story on January 19
Under the terms of the agreements, Ruchi Soya would process the crude oil provided by Patanjali Ayurved and pack the refined oil as per their specifications, the company said in a filing to BSE.
Managing Director of the company Dinesh Shahra said, “We have been looking at opportunities to explore optimal use of unutilised capacities for crushing, refining and packaging edible oils with various parties. The agreement with Patanjali Ayurved is a win-win situation. We will be able to utilise idle capacities, and work with Patanjali to enable them to supply quality refined oils to the Indian market.”
Following the announcement, the stock jumped 20 per cent to hit its upper circuit limit of Rs 30.80. The stock has shot up 53 per cent in the past three months.
Ruchi Soya boasts of having the largest edible oil refining capacity in India of 3.3 million metric tonnes per annum across 13 facilities.
Satendra Aggarwal, COO said, “The agreements for physical refining and packing would cover processing and packing soya, sunflower and mustard oils at our plant in Baran, Rajasthan. In the near future, the processing and packing will be extended to other locations and will include more various varieties of edible oils as well. The tie up will help Ruchi Soya to improve capacity utilisation and enhance productivity, efficiency and profitability.”
The announcement has offered some relief to Ruchi Soya which owes almost Rs 10,000 crore to banks. The company is also is contesting winding up proceedings initiated by IDFC Bank in Bombay High Court
ET was first to report the story on January 19
Under the terms of the agreements, Ruchi Soya would process the crude oil provided by Patanjali Ayurved and pack the refined oil as per their specifications, the company said in a filing to BSE.
Managing Director of the company Dinesh Shahra said, “We have been looking at opportunities to explore optimal use of unutilised capacities for crushing, refining and packaging edible oils with various parties. The agreement with Patanjali Ayurved is a win-win situation. We will be able to utilise idle capacities, and work with Patanjali to enable them to supply quality refined oils to the Indian market.”
Following the announcement, the stock jumped 20 per cent to hit its upper circuit limit of Rs 30.80. The stock has shot up 53 per cent in the past three months.
Ruchi Soya boasts of having the largest edible oil refining capacity in India of 3.3 million metric tonnes per annum across 13 facilities.
Satendra Aggarwal, COO said, “The agreements for physical refining and packing would cover processing and packing soya, sunflower and mustard oils at our plant in Baran, Rajasthan. In the near future, the processing and packing will be extended to other locations and will include more various varieties of edible oils as well. The tie up will help Ruchi Soya to improve capacity utilisation and enhance productivity, efficiency and profitability.”
