Patanjali’s personal care business: Patanjali Ayurved, led by Baba Ramdev, has announced the sale of its home and personal care business to the listed group firm Patanjali Foods Ltd for Rs 1,100 crore.
The move aims to transform Patanjali Foods from an edible oil company into a major player in the fast-moving consumer goods (FMCG) sector.
In a regulatory filing, Patanjali Foods disclosed that its board has approved the acquisition of Patanjali Ayurved’s entire non-food business, which includes hair care, skin care, dental care, and home care. The acquisition covers all movable assets, immovable properties, contracts, licenses, books and records, employees, and certain assumed liabilities of Patanjali Ayurved through a slump sale arrangement on a going concern basis.
The transaction is pending approval from shareholders, lenders, and other necessary regulatory bodies.
Patanjali Foods stated that the acquisition would accelerate its transition into a leading FMCG company. The home and personal care business of Patanjali Ayurved currently boasts strong brand equity in India’s FMCG market and has a loyal consumer base.
The business caters to four key segments: dental care, skin care, home care, and hair care. Additionally, Patanjali Foods and Patanjali Ayurved have agreed to enter into a licensing agreement, allowing Patanjali Foods to use the trademarks and associated intellectual property rights owned by Patanjali Ayurved.
The transfer of the home and personal care business has been mutually agreed upon by both companies, based on valuations conducted by independent valuers, for a lump sum consideration of Rs 1,100 crore.
The acquisition will consolidate the ‘Patanjali‘ brand FMCG product portfolio and bring key synergies, including enhanced brand equity, product innovations, cost optimisation, infrastructure and operational efficiencies, and a positive impact on market share.
Following the board’s approval, Patanjali Foods will proceed with executing the definitive agreements related to the acquisition and will apply for the necessary regulatory approvals required to complete the transaction.
(With PTI inputs)
