Ruchi Soya to change name to Patanjali Foods, acquire its food retail business

Ruchi Soya Industries Limited has decided to change its name to “Patanjali Foods Limited”.

The company, in a filing, said that it will be taking over the food retail business of Patanjali Ayurved Limited.

"Business Transfer Agreement (“BTA”) with Patanjali Ayurved Limited (“PAL”) to ; acquire the food retail business undertaking of PAL which consists of manufacturing, packaging, labelling and retail trading of certain food products along with manufacturing plants located at Padartha, Haridwar, and Newasa, Maharashtra (“Food Retail Business Undertaking”), as a going concern on a slump sale basis subject to approval of shareholders," the filing said.

The change in the name, however, is subject to approval of members, the Ministry of Corporate Affairs and other regulatory authorities.

The transaction is done on a slump sale basis for a consideration of Rs 690 crore.

The deal includes transfer of employees, several assets like contracts, licenses, permits, distribution network and customers of the Food Retail Business. However, Patanjali’s brand, trademark, copyrights, vehicles, debtors, cash and bank balance still remains with PAL.

Patanjali Ayurved Limited’s turnover for the last fiscal year accounted for 10,605 crore (approx.) The objective of this acquisition is to expand the existing product portfolio of the company and come out as a big player in the FMCG sector of India.