New Delhi [India], April 26 : The Board of Directors of Patanjali Foods Limited, at its meeting held on Friday, discussed the initial proposal received from Patanjali Ayurved Limited (PAL) for a sale of the latter's non-food business undertaking to the former.
The Board accorded its in-principle approval for evaluating the most efficient mode of enhancing synergies with Patanjali Ayurved Limited's non-food portfolio in any manner on an arm's length basis.
In a stock exchange filing, Patanjali Foods said it also authorized officials to carry out due diligence, appoint professionals, negotiate the terms and conditions of the proposal, and report the findings to the Audit Committee and the Board for further consideration.
To strengthen its product portfolio, the company acquired the biscuits business of Patanjali Natural Biscuits Private Limited for Rs 60.03 crore in May 2021. 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.
"The proposal received from PAL may offer synergies to the Company's product portfolio with an array of brands and contribute to the growth in terms of revenue and EBITDA," the stock filing read.
Incorporated in 1986, Patanjali Foods Limited (formerly known as Ruchi Soya Industries Limited) is one of India's top FMCG players. The company operates in edible oils, food and FMCG and wind power generation segments via a bouquet of brands like Patanjali, Ruchi Gold, Nutrela.