Patanjali Foods to acquire Patanjali Ayurved's non-food division for Rs 1,100 crore

In an effort to improve its FMCG standing, the board accepted Patanjali Ayurved's proposal to purchase the personal care and home business.

Patanjali Foods' board has approved Patanjali Ayurved's proposal to acquire its home and personal care business, aiming to boost its position as a leading FMCG company in India.

The HPC business of Patanjali Ayurved is well-established with a strong brand presence in dental care, skin care, home care, and hair care segments, catering to a loyal consumer base nationwide. The acquisition will enhance Patanjali Foods' FMCG product portfolio with brands, driving revenue and EBITDA growth.

The agreement includes all assets, liabilities, employees, distribution network, contracts, and approvals related to the HPC business. The closing of the acquisition is subject to regulatory approvals. The deal involves a lump sum payment of Rs. 1,100 crore and a licensing agreement for using Patanjali Ayuved's trademarks and intellectual property.

The consolidation of Patanjali's FMCG products portfolio is expected to bring synergies in brand equity, product innovation, cost efficiency, infrastructure, operational effectiveness, and market share. Patanjali Foods, previously known as Ruchi Soya Industries, is a player in the Indian FMCG sector, operating in edible oils, food, and wind power generation with brands like Patanjali and Ruchi Gold.