Insolvency: Ramdev's Patanjali makes over Rs 40-bn bid for Ruchi Soya

FMCG firm Patanjali Ayurveda has put in bid of over Rs 40 billion to acquire bankruptcy-hit edible oil firm Ruchi Soya, according to sources.

Among other suitors that have put in bids to acquire debt-ridden Ruchi Soya are Adani Wilmar, Emami Agrotech and Godrej Agrovet besides Patanjali.

Baba Ramdev-led Patanjali Ayurveda already has a tie-up with Ruchi Soya for edible oil refining and packaging.

Indore-based Ruchi Soya, which is facing insolvency proceedings, has a total debt of about Rs 120 billion. The company has many manufacturing plants and its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.

"Patanjali has bid over Rs 40 billion for Ruchi Soya," a source said.

Last week, a Patanjali spokesperson had said that the company has bid for Ruchi Soya as it aims to be a major player in edible oil segment, particularly soybean oil. It also wants to work for farmers' benefit.

Godrej Agrovet and Emami Agrotech, too, had confirmed that they have put in bids for Ruchi Soya but did not disclose the value.

Sources had said that Adani Wilmar, which sells cooking oil under Fortune brand, also has put in a bid.

In December 2017, Ruchi Soya Industries Ltd entered into the Corporate Insolvency Resolution Process (CIRP) and Shailendra Ajmera was appointed to act as Interim resolution Professional (IRP).

The appointment was made by the National Company Law Tribunal (NCLT) on the application of the creditors Standard Chartered Bank and DBS Bank Ltd, under the Insolvency and Bankruptcy Code.

Emami Agrotech is the edible oil and bio-diesel arm of Emami Group of Companies, the Rs 100 billion, business conglomerate based in Kolkata. It has diverse business interests in segments such as production and distribution of edible oil, specialty fats and bio-diesel.

Godrej Agrovet, part of Godrej group, is into animal feed, crop protection, oil palm, dairy, poultry and processed foods.