• June 25, 2024

Rajkotupdates.News : Ruchi Soya To Be Renamed Patanjali Foods Company Board Approves Stock Surges

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Ramdev-led Patanjali Ayurved acquired the food business of Ruchi Soya Industries Ltd on a slump sale basis, it said in an exchange filing. The acquisition will give the company 21 major products, including ghee, honey, spices and juices.

Patanjali Foods To Be Merged With Ruchi Soya

The company is in the process of acquiring Patanjali Ayurved’s food business. The move will help it accelerate its transition into a fast-moving consumer goods (FMCG) firm. It will also boost its reach from fields to plates. Its goal is to become the world’s second largest FMCG firm by 2020.

The deal will include 21 products, including ghee, honey, spices, juices, and wheat. It will also have the rights to use the ‘Patanjali’ name and logo, which will boost its brand image. The deal is expected to be completed by the end of this year. The company will pay for the transaction with internal accruals.

In the long run, the merger will create a global leader in edible oil. It will also give the group a stronger foothold in the fast-growing oil palm plantation industry. It will have 57,000 hectares of land under cultivation, which it plans to expand significantly in the southern and northeastern regions of India. It will also invest in converting those areas into organic farms.

Ruchi Soya will focus on four business verticals — edible oil, food and FMCG, nutraceuticals, and oil palm plantation. It aims to become a zero debt and cash-rich company, according to CEO Sanjeev Asthana. Its food portfolio has been growing rapidly and is expected to reach Rs 4,000 crore in the next few years.

In addition to its oil and soya business, the company also produces dal, atta, and dairy products. Its processing plants are located across India, and it has a total refining capacity of 11,000 tonnes per day. It also has a strong distribution network with 100 sale depots, 4763 distributors, and 457,788 retail outlets.

The company is currently developing new edible oils, including mustard and sesame oil. It has a strong presence in the vegetable oil segment and is one of the leading players in the Indian market. It is also working to reduce its dependence on imports and save foreign exchange. It recently signed a EUR4.5 million deal with Solidaridad, which is aimed at improving India’s production of edible oil.

Ruchi Soya To Repay Debt

The company recently raised Rs 4,300 crore through a follow-on public offer. The proceeds will be used to repay the debt of the company. It is also planning to set up a food processing unit and a wind power plant, which will reduce the dependency on imported oil. It will also increase its revenue to Rs 15,000 crore per year.

Yoga guru Ramdev hopes to make Patanjali and Ruchi Soya the largest food and FMCG company in the country. The two companies will merge in April to achieve this goal. The merger will include the food business, manufacturing plants, employees, and assets. The companies will also share a common distribution network. The new entity will sell products under the brands of Ruchi Gold, Mahakosh, Sunrich, Nutrela, and Ruchi Star. The merger will allow the company to grow faster and increase market penetration.

In 2019, Patanjali Ayurved bought the debt-ridden Ruchi Soya for Rs 4,350 crore through an insolvency process. In FY21, the combined revenues of both companies exceeded Rs 16,400 crore. This was the first time that Patanjali’s revenues had crossed this mark.

However, the company’s debt of Rs 2,925 crore has been written off by the banks. The debt was owed to a consortium of lenders led by State Bank of India. The rest of the lenders included Punjab National Bank, Union Bank of India, Syndicate Bank, and Allahabad Bank.

In order to write off the bad debt, the company will have to meet certain criteria. In addition, the company will have to have an operating income of at least Rs 1,500 crore over the next three years. It will also have to maintain a minimum networth of Rs 500 crore. Moreover, the company must have a good track record in terms of repayment. This is important because if the company fails to meet its requirements, it will have to face regulatory penalties. In such a scenario, it is likely that the company will be forced to sell some of its assets. In addition, the banks will try to recover the debt from the sale of the assets.

Ruchi Soya To Rename

The board of Ruchi Soya has approved the renaming of the company to Patanjali Foods. This is in line with the plans of Patanjali group chief Ramdev to transform his company into one of the largest FMCG firms in India. The move will help the company expand its brand portfolio and gain a greater market share. The renaming of the company will also increase its visibility among consumers and boost the recall value of its products.

The name change will take effect on or after the approval of the Registrar of Companies, the company said in a statement. The new name will reflect the strong linkage between the two entities, the company added. The merger will also enable the company to benefit from the reputation and goodwill earned by Patanjali. The renaming is expected to help the company strengthen its foothold in the edible oil and FMCG markets.

In a filing to the exchanges, the company said it had signed a business transfer agreement with Patanjali Ayurved Limited (PAL) to acquire its food retail business undertaking, which includes the manufacturing, packaging, labelling and retail trading of certain food products and manufacturing plants located at Padartha, Haridwar and Newasa, Maharashtra. The acquisition is valued at Rs 690 crore on a slump sale basis. PAL will retain its non-food businesses, including ayurvedic medicines and home-care procedures.

This move will be a boon for Ruchi Soya, which had faced a number of challenges in the past. For example, the company’s soaring prices led to customer dissatisfaction and lower sales. Moreover, the firm has struggled with high debt levels.

In the past few years, however, the company has made significant improvements. The firm’s current management has restructured the company to reduce debt and improve operating efficiency. It has partnered with foreign investors and refocused its strategy to become more profitable.

With the recent move, the company will be able to focus on improving its operations and reducing costs. This will allow it to compete with top companies in the FMCG industry, such as Nestle, ITC, and Britannia.

Ruchi Soya To Rebrand

The board of Ruchi Soya Industries has approved renaming the company as Patanjali Foods. The company will also evaluate the most efficient mode to merge its food portfolio with that of Patanjali Ayurveda Ltd. The move will strengthen the company’s presence in the FMCG sector and boost its earnings.

The company will be able to leverage the promoter pedigree and brand equity of Patanjali Ayurveda. It will also be able to take advantage of the former’s strong presence and supply chain network in the FMCG sector.

In addition to this, the company will benefit from the latter’s strong sourcing capabilities and technical know-how. It will be able to expand its presence in new markets as well. It will also benefit from the former’s extensive experience in food manufacturing and trading, and its extensive network distribution across India.

Patanjali Foods is a part of Yoga Guru Ramdev’s Patanjali group and is one of the largest companies in the Indian edible oil industry. It is an integrated player in the edible oil sector, with a complete reach from fields to plates. It has secured access to oil palm plantations in India and is the highest exporter of soya meal and lecithin.

Its portfolio includes products such as Ruchi Gold, Mahakosh, Sunrich, Nutrela, and Ruchi Star. The company’s products are sold in 38 countries. These brands are aimed at catering to the needs of consumers, especially those concerned about their health and wellness. Its products are low in cholesterol and organic. They are also a good source of nutrients.

In order to ensure the success of its brands, the company has invested in research and development. It has a state-of-the-art R&D facility, and is continuously working to improve the quality of its products. The company has also launched a number of health campaigns to encourage people to make healthy choices. These campaigns are backed by scientific data and evidence, and they have been successful in motivating consumers to make healthier choices. The company has a highly experienced management team and board of directors. These individuals have decades of hands-on experience in the industry and bring substantial business expertise to the table.

Mostafijur Rahaman

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