TIL Desk/Business/New Delhi/ Baba Ramdev-led Patanjali Ayurved Ltd will sell its food retail business to group firm Ruchi Soya Industries Ltd for Rs 690 crore as part of its strategy to focus on non-food, traditional medicine and wellness business. Patanjali Ayurved Ltd had acquired Ruchi Soya through an insolvency process.
In a regulatory filing, Ruchi Soya informed that it has entered into a “Business Transfer Agreement” with Patanjali Ayurved Ltd to acquire the food retail business of the latter as a going concern on a slump sale basis. The food retail business consists of manufacturing, packaging labelling and retail trading of certain food products along with manufacturing plants located at Padartha, Haridwar, and Newasa, Maharashtra.
The transaction shall consist of the 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 of Patanjali Ayurved.
The proposed acquisition falls under the related-party transaction. The amount of consideration for the acquisition agreed upon under the agreement is Rs 690 crore, subject to certain adjustments. The board also approved the change in the company’s name from ‘Ruchi Soya Industries Limited’ to ‘Patanjali Foods Limited.
