Patanjali Foods gains on getting CCI’s nod for acquisition of home & personal care business of Patanjali Ayurved

Patanjali Foods is currently trading at Rs. 1710.45, up by 3.50 points or 0.21% from its previous closing of Rs. 1706.95 on the BSE.

The scrip opened at Rs. 1722.95 and has touched a high and low of Rs. 1722.95 and Rs. 1696.75 respectively. So far 4216 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 2030.00 on 04-Sep-2024 and a 52 week low of Rs. 1170.10 on 04-Jun-2024.

Last one week high and low of the scrip stood at Rs. 1722.95 and Rs. 1593.00 respectively. The current market cap of the company is Rs. 61884.83 crore.

The promoters holding in the company stood at 72.81%, while Institutions and Non-Institutions held 13.34% and 13.86% respectively.

Patanjali Foods has received Competition Commission of India's (CCI’s) approval for its proposed acquisition of the home and personal care (HPC) business of Patanjali Ayurved (PAL), for Rs 1,100 crore.

The approval shall accelerate the Company’s transition into a leading FMCG company. The HPC business comprising of dental care, skin care, home care and hair care has a strong brand equity in India’s FMCG space. It enjoys a loyal consumer base across the country and the acquisition shall strengthen the company’s existing FMCG product portfolio with an array of marquee brands and is expected to contribute positively to growth in revenue and EBITDA.

The shareholders of the Company have already approved the acquisition on August 04, 2024 pursuant to approval of the Board of Directors of the Company. The HPC Business of PAL is being acquired on a going concern basis and includes all the assets and liabilities attributable to the business, relevant employees, distribution network, contracts, licenses, permits, consents, and approvals integral to this operation (hereafter referred to as the ‘Business Undertaking’). Further, the Company also acknowledges the value of the intellectual properties of the HPC Business’ product portfolio and its market importance. Accordingly, the Company and PAL have also agreed to enter into a licensing agreement permitting the Company to use the trademarks and associated intellectual property rights, owned by PAL, that relate to the product portfolio of the HPC Business.

The acquisition will lead to a consolidation of ‘Patanjali’ brand FMCG products portfolio as part of growing business of Patanjali Foods. The acquisition will bring along with it multiple key synergies for the Company in terms of brand equity and enhancements, product innovations, cost optimisation, infrastructure & operational efficiencies and positive impact on market share. This is the company’s fourth acquisition in last 3 years. With this acquisition, the company has reaffirmed its position to be a strong FMCG company in its journey towards becoming a major player in the FMCG space.

Patanjali Foods, erstwhile Ruchi Soya Industries, sells its products under brands like Ruchi Gold, Mahakosh, Sunrich, Nutrela, Ruchi Star and Ruchi Sunlight.