Ruchi Soya to evaluate merger of Patanjali’s food portfolio with itself

Baba Ramdev's Ruchi Soya Industries on Monday said it will evaluate the most efficient mode to merge Patanjali Ayurved Ltd's food portfolio with itself and has also decided to change the name of the company to Patanjali Foods Ltd.

Ruchi Soya has recently raised Rs 4,300 crore through its Follow-on Public Offer (FPO).

In a regulatory filing, Ruchi Soya informed that the board, in its meeting held on Sunday, "Accorded its in-principle approval for evaluating the most efficient mode of enhancing synergies with the Patanjali Ayurved Ltd food portfolio in any manner on an arm's length basis." It also authorised officials of the company to negotiate, finalise, execute and deliver the terms and conditions of the proposed transaction.

Last month, Baba Ramdev had announced that: "In the next few months, Patanjali Ayurved will transfer all food business to Ruchi Soya. Patanjali Ayurved would operate in non-food, traditional medicine and wellness space."

Ramdev had said Ruchi Soya would focus on four business verticals - edible oil, food and FMCG, nutraceuticals and oil palm plantation.

Ruchi Soya has developed 57,000 hectares of area under oil palm and the plan is to expand significantly in southern and northeastern regions of the country.

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

Ruchi Soya has developed 57,000 hectares of area under oil palm and the plan is to expand significantly in southern and northeastern regions of the country.