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Transferring food portfolio of Patanjali to Ruchi Soya which may result in volume of ₹4,000 crore revenue with higher margin of around 20 per cent, sources in industry said on Monday.
This has come on the day when Indore-based Ruchi Soya informed stock exchanges by changing its name to Patanjali Food besides transferring food portfolio. However, the stock prices appeared unfazed by this development as it closed on BSE at ₹921.80 which is 0.74 per cent or ₹6.80 lower than Friday closing prices.
Decoding the move, an industry source pegged the margin approximately at ₹800 crore. “This kind of margin means additional capitalisation of about 30,000 crore as per industry multiplier,” he explained. The company has recently raised ₹4,300 crore through its Follow-on Public Offer (FPO). The share was at ₹938.70 as against issue price of ₹650 witnessing an increase of over 44 per cent. The company has also repaid entire debt of ₹2,925 crore.
Earlier, in its board meeting on Sunday, the Board of Directors of Ruchi Soya Industries accorded their in-principle approval for evaluating the most efficient mode for enhancing synergies with Patanjali Ayurved Limited’s (PAL) food portfolio in an arm’s length basis. In a regulatory filing, the company informed that it also authorised officials of the company to negotiate, finalise, execute and deliver the terms and conditions of the proposed transaction.
Food portfolio
The food portfolio may include the PAL’s products such as Whole Wheat Traditional Chakki Atta, Pulses and Others, Aloevera Juice, Amla Juice, Medicated Juice, Fruit Juice and beverages, Candy, Murabba and Pickle, Spices, Mustard Oil, Rice Bran Oil, cow ghee, jam and ketchup etc.
“The Board of Directors have also decided to change the name of the company from Ruchi Soya Industries Limited to Patanjali Foods Limited or any other name as may be made available by Registrar of Companies, Maharashtra, Mumbai, subject to all other applicable approvals,” the company said in a communication to stock exchanges.
Last month, Baba Ramdev had announced that: “In the next few months, Patanjali Ayurved will transfer all food business to Ruchi Soya. Patanjali Ayurved will operate in non-food, traditional medicine and wellness space.”
Ruchi Soya has developed 57,000 hectares of area under oil palm and the plan is to expand in southern and northeastern regions of the country. Last year, Patanjali had transferred its biscuits business to Ruchi Soya for ₹60 crore
The combined annual turnover of Patanjali Ayurved group and its subsidiary Ruchi Soya is around ₹35,000 crore .Ruchi Soya, which was acquired by the Patanjali group in 2019 for ₹4,350 crore through an insolvency process, had a revenue of nearly ₹16,400 crore in FY21
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