Ruchi Soya renamed Patanjali Foods

Patanjali Ayurved will sell its food retail business to group firm Ruchi Soya Industries for Rs 690 crore. The board also approved the change in the company's name from 'Ruchi Soya Industries Limited' to 'Patanjali Foods Limited”.

Earlier, Patanjali Ayurved had acquired Ruchi Soya through an insolvency process.

The company said that this decision has been made as part of its strategy to focus on non-food, traditional medicine and wellness business.

In a regulatory filing, Ruchi Soya wrote that it has entered into a "Business Transfer Agreement" with Patanjali Ayurved to acquire the food retail business of the latter due to the ongoing concern on a slump sale basis.

The acquisition includes Patanjali’s manufacturing, packaging, labelling and retail trading of certain food products along with manufacturing plants located at Padartha, Haridwar, and Newasa, Maharashtra.

The transaction shall consist of the transfer of employees, assets (excluding Patanjali’s brand, trademarks, designs and copyrights), current assets (excluding debtors, vehicles, cash and bank balance) contracts, licenses and permits, distribution network, customers related to the food retail business of Patanjali Ayurved.

Ruchi Soya recently raised Rs 4,300 crore through its follow-on public offer (FPO).

Last year, Patanjali transferred its biscuits business to Ruchi Soya for a nominal consideration of Rs 60 crore.

"We have set a target to make Patanjali Ayurved and Ruchi Soya, India's largest food and FMCG company in the next five years," Ramdev had said.

Ruchi Soya, which was acquired by the Patanjali group in 2019 for Rs 4,350 crore through an insolvency process, had a revenue of nearly Rs 16,400 crore in FY21.

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