Patanjali Foods to acquire Patanjali Ayurved’s non-food Filesadmin.co for Rs 1,100 cr
The move comes amid increased regulatory attention on the company
Indian fast-moving consumer goods (FMCG) company Patanjali Foods will be acquiring the entire non-food business from Patanjali Ayurved, it said on Monday.
The listed entity will acquire the business from Patanjali Ayurved for a total consideration of Rs 1,100 crore. The transaction will be completed in five tranches.
The company has also entered a licensing agreement with Patanjali Ayurved for a 3 per cent turnover-based fee.
The non-food business currently caters to four key segments under home and personal care categories and will help expand its product portfolio. These include dental care, skin care, home care, and hair care. “This strategic initiative for the acquisition of the HPC business shall strengthen the company’s existing FMCG product portfolio with an array of marquee brands that will contribute to significant growth in revenue and EBITDA,” the company said in an exchange filing.
“The acquisition will bring along with it multiple key synergies in terms of brand equity and enhancements, product innovations, cost optimisation, infrastructure and operational efficiencies, and positive impact on market share,” it added.
The move comes amid increased regulatory attention on the company.
Patanjali Foods had acquired the biscuits business of Patanjali Natural Biscuits Private Limited in May 2021 for Rs 60.03 crore. The company also acquired the noodles and breakfast cereals business for Rs 3.50 crore in June 2021 and the food business in May 2022 for Rs 690 crore from Patanjali Ayurved Limited.
First Published: Jul 01 2024 | 6:54 PM IST