Ruchi Soya said that its board has decided to change the name of the company from “Ruchi Soya Industries Limited” to “Patanjali Foods Limited” subject to statutory and regulatory approvals. “Business Transfer Agreement (“BTA”) with Patanjali Ayurved Limited (“PAL”) to; acquire the food retail business undertaking of PAL which consists of manufacturing, packaging, labeling, and retail trading of certain food products along with manufacturing plants located at Padartha, Haridwar, and Newasa, Maharashtra (“Food Retail Business Undertaking”), as a going concern on a slump sale basis subject to the approval of shareholders,” the filing said.
The company, in a filing, said that it will be taking over the food retail business of Patanjali Ayurved Limited. Shares of Ruchi Soya were up 4.88 percent at Rs 1,136.70 in the afternoon trade.
“The transaction shall consist of transfer of employees, assets (excluding Patanjali’s brand, trademarks, designs, and copyrights), current assets (excluding debtors, vehicles, cash, and bank balance) contracts, licenses and permits, distribution network, customers related to the Food Retail Business Undertaking of Patanjali Ayurved,” the company informed in an exchange filing.
Ruchi Soya is recognized among the largest branded oil packaged food company. Its ‘Ruchi Gold’ brand has a market leadership position, on account of being India’s highest-selling palm oil brand and also the pioneer and largest manufacturer of soya foods in India under the brand name of “Nutrela’.
The Company is recognized among the largest branded oil packaged food company with a strong portfolio of brands in various types of cooking oils under categories such as palm, soybean, mustard, sunflower, cottonseed, etc. with a robust brands portfolio of “Ruchi Gold”, “Mahakosh”, “Sunrich”, Ruchi Star and Ruchi Sunlight.
Ruchi Soya was bought by Patanjali Ayurved for Rs 4,350 crore in the year 2019 under an insolvency process. Now the board of Ruchi Soya has changed the name of the company to Patanjali Foods. The company says that the directors have done this to enhance synergy with the food portfolio of Patanjali Ayurved Limited. Recently, the company has also entered the segment of flour and honey.
