Patanjali Foods will acquire Patanjali Ayurved's non-food business for a sum of Rs 1,100 crore

On July 1st, Patanjali Foods announced that its board has approved the acquisition of Patanjali Ayurved's non-food business for Rs 1,100 crore to be paid in installments. The acquisition will be conducted as a slump sale, allowing Patanjali Foods to expand its product range. Patanjali Ayurved's co-founders are Ramdev and Balakrishna who serves as the company's Managing Director.

The non-food business of Patanjali Ayurveda currently includes dental care, skin care, home care, and hair care products. Through this acquisition, Patanjali Foods aims to enhance its Fast-Moving Consumer Goods (FMCG) portfolio with well-known brands, leading to significant revenue and EBITDA growth. As part of the deal, a licensing agreement has been reached, under which Patanjali Foods will pay a 3 percent fee based on turnover among other terms.

The acquisition will result in a consolidation of FMCG products under the 'Patanjali' brand, bringing various synergies such as brand equity improvement, product advancement, cost savings, operational efficiency enhancements, and increased market share. Pending final agreements and necessary approvals, Patanjali Foods is set to proceed with the acquisition. Jefferies India Private Limited provided advisory services to Patanjali Ayurved Limited on this transaction. Jefferies India Private Limited provided advice to Patanjali Ayurved Limited on the transaction.