Patanjali Foods to acquire Patanjali Ayurved’s home, personal care business for ₹1,100 crore

Patanjali Foods to acquire Patanjali Ayurved's home and personal care business for ₹1,100 crore, aiming to become a leading FMCG company.

Edible oil major Patanjali Foods Ltd on July 1 said it will acquire Baba Ramdev-led Patanjali Ayurved's home and personal care business for ₹1,100 crore, as part of its efforts to become a leading FMCG company.

Patanjali Ayurved Ltd (PAL) is one of the promoters of Patanjali Foods. The acquisition falls under related party transactions being undertaken on a fair value and arms' length basis.

In a regulator filing, Patanjali Foods informed that the board has approved the "acquisition of the entire non-food business undertaking i.e. hair care, skin care, dental care and home care carried out by PAL, including but not limited to all movable assets, immovable properties, contracts, licenses, books and records, employees and certain assumed liabilities of PAL through a slump sale arrangement on a going concern basis".

This is subject to the approval of shareholders, lenders and other necessary approvals. The company will have to get approval from the Competition Commission of India.

"The consideration for the acquisition shall be ₹1,100 crore, payable by the company to the seller in tranches...," it added.

Patanjali Foods will pay the entire amount in five tranches.

Patanjali Foods CEO Sanjeev Asthana said the company would fund this deal through internal cash reserves.