Patanjali Group plans to list 4 group firms over the next 5 years

Patanjali Group plans to list the other four of its group companies in the next five years as it aims to have a market capitalisation of over Rs 5 trillion. 

It plans to list Patanjali Ayurved, Patanjali Wellness, Patanjali Lifestyle, and Patanjali Medicine in the next five years, according to a source. It already has one listed entity — Patanjali Foods — that was earlier called Ruchi Soya Industries. 

The board of Patanjali Ayurved recently approved the transfer of the food business to Ruchi Soya Industries. 

The company will have a press conference on Friday and the agenda includes outlining its vision for 2027 and announcing its listing plans for its companies. The company statement said it also intends “to expose conspiracies and efforts of rumour-mongers who spread false facts and figures with vested motives to disparage Patanjali and its Swadeshi movement in the direction of stronger and healthier India”.

Before changing the name of Ruchi Soya to Patanjali Foods, it announced the acquisition of the entire food business of Patanjali Ayurved for Rs 690 crore in order to accelerate its transition into a leading fast-moving consumer goods company. 

Patanjali Foods got the manufacturing plants located at Padartha, Haridwar, and Newasa in this acquisition.  It includes the transfer of employees, assets, contracts, licenses and permits, distribution network, and customers related to the food retail business undertaking of Patanjali Ayurved.

However, it excludes Patanjali’s brand, trademarks, designs, and copyrights. While the transaction includes current assets, it excludes debtors, vehicles, cash, and bank balance, the company had said in its stock exchange filing. 

The acquired food business consists of 21 products, which include ghee, honey, spices, juices, atta, etc. It also raised Rs 4,300 crore through a follow-on public offer (FPO). 

A bulk of FPO proceeds were used to repay debt and the rest the company said would be to fund incremental working capital requirements of the company.

“Due to the absence of data for these companies, it is difficult to assign a valuation to them. But after looking at the success of Ruchi Soya FPO, Patanjali Group's initial public offerings could gain traction,” said Dinesh Gupta, director, UnlistedZone.

In 2021-22, Patanjali Foods’ revenue from operations stood at Rs 24,205 crore, compared with Rs 16,318.6 crore. Its profit for the year stood at Rs 806.3 crore, in contrast with Rs 680.77 crore in 2020-21.

It recently announced plans to undertake oil palm plantations on 38,000 hectares (ha) of land across nine districts in the state. It already has two nurseries at Pasighat and Holangi and is in the process of setting up three more in Lower Siang District at Khurram, FTC, and Dipa.

According to the company, the move will give fresh impetus to the state’s economy and generate employment, apart from augmenting local farmer income.

Patanjali Foods is one of the largest oil palm plantation firms in India and has access to assets in about 55 districts across 11 states, including Telangana, Karnataka, Gujarat, Odisha, Assam, Mizoram, and Tripura.

The firm works with 43,000 farm families and has 60,000 ha area under palm plantation. It also has 182 farmer information-cum-fresh fruit bunch procurement centres, 22 godowns, and two state-of-the-art oil palm processing mills in Andhra Pradesh.

Moreover, it proposes to undertake large-scale cultivation of oil palm on 500,000 ha under the centrally sponsored scheme, National Mission on Edible Oils-Oil Palm, which has special focus on the Northeast, and the Andaman and Nicobar Islands. 

Dreaming big

1. Baba Ramdev-backed group plans to list Patanjali Ayurved, Patanjali Wellness, Patanjali Lifestyle, and Patanjali Medicine
2. Patanjali Group aims to have a market capitalisation of over Rs 5 trillion in the next five years across all of its five entities
3. Ruchi Soya was recently changed to Patanjali Foods
4. Patanjali Foods, the group’s listed entity, also acquired the entire food business of Patanjali Ayurved for Rs 690 crore