Ruchi Soya is one of the top FMCG players in India as a leading manufacturer and marketer of a healthy range of edible oils and a pioneer of soya foods. Through an insolvency procedure, Baba Ramdev’s Patanjali purchased Ruchi Soya in 2019.
“Business Transfer Agreement (BTA) with Patanjali Ayurved Limited (PAL) to acquire PAL’s food retail business undertaking, which consists of manufacturing, packaging, labeling, and retail trading of certain food products, as well as manufacturing plants located in Padartha, Haridwar, and Newasa, Maharashtra (Food Retail Business Undertaking), as a going concern on a slump sale basis, subject to shareholder and other authorities’ approval.”, the company said.
On a slump sale basis, the amount of consideration for the transaction is Rs 690 crore, with an estimated completion date of July 15, 2022. Following the acquisition, the name of Ruchi Soya would be changed to Patanjali Foods.
“Change in the name of the company from “Ruchi Soya Industries Limited” to “Patanjali Foods Limited” subject to the approval of members, the Ministry of Corporate Affairs, and any other applicable legislative/regulatory bodies. Annexure 2 contains a copy of the letter dated April 29, 2022, issued by the Ministry of Corporate Affairs confirming the availability of the name Patanjali Foods Limited “The company also filed an exchange filing.
Employees, assets (excluding Patanjali’s brand, trademarks, designs, and copyrights), current assets (excluding debtors, vehicles, cash, and bank balance), contracts, licences and permits, distribution network, and customers relevant to PAL’s food retail business initiative shall be transferred.
“The proposed transaction is a related party transaction. PAL is one of the Company’s promoters. Furthermore, Ram Bharat, the Company’s Managing Director and one of its promoters, is a Director of PAL. Acharya Balkrishna, one of the Company’s promoters and Chairman, also owns 98.5 percent of PAL’s paid-up equity share capital. The transaction is being carried out at fair value “Ruchi Soya participated in the exchange filing.
Ruchi Soya is one of the top FMCG firms in India as a leading maker and marketer of a healthy range of edible oils and a pioneer of soya foods. Through an insolvency procedure, Baba Ramdev’s Patanjali purchased Ruchi Soya in 2019.