Ruchi Soya acquires Patanjali Ayurved's food business for Rs 690 crore

To pay 1% of turnover of products as annual royalty under transfer agreement

Edible oil major Ruchi Soya has announced it’s  acquiring the food business of Patanjali Ayurved for around Rs 690 crore. This is expected to fast-track Ruchi Soya’s shift to the fast-moving consumer goods (FMCG) category.

The name of Ruchi Soya Industries Ltd will be changed to Patanjali Foods Ltd after regulatory approvals.  

The acquired food business consists of 21 products including ghee, honey, spices, juices and flour.

Ruchi Soya will pay an annual royalty to Patanjali Ayurved, estimated at 1 per cent of the gross turnover of the products under the transfer agreement, according to a company source.

It’s a debt-free transfer and Ruchi