Ruchi Soya is set to acquire Patanjali Ayurved’s food retail business, to accelerate its transition to a leading FMCG company. This will include Patanjali-owned manufacturing units situated in Padartha district, Haridwar in Uttarakhand and Newasa unit in Maharashtra, transfer of employees and its distribution networks.

Baba Ramdev’s Patanjali Group had acquired Ruchi Soya through an insolvency process in 2019.

“The acquisition is valued at a fair market value (Net) of ₹690 crore based on all the fixed assets of food division & respective current assets on slump sale basis,” it said in a BSE filing. Patanjali’s food business comprises of 21 major products including ghee, honey, spices, juices and atta among others. The acquisition is expected to be completed by July 15. Post the acquisition, the name of Ruchi Soya will also be changed to Patanjali Foods.

The proposed acquisition falls under the related-party transaction. “With this acquisition, the company also informed that it has reaffirmed its position to be a strong FMCG company in its journey towards becoming a major player in the FMCG space as committed to its shareholders at the time of its maiden FPO,” the company added.

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It added that the Board of Directors of Patanjali Ayurved has also approved this transfer of food business to Ruchi Soya Industries’ with effective date May 9. “This strategic initiative for acquisition of food business shall strengthen its food product portfolio with array of brands and also contribute to the growth in terms of revenue and EBIDTA,” it stated.