Ruchi Soya acquires biscuits business from Patanjali Natural Biscuits; stock shines

Ruchi Soya Industries Limited has signed a business transfer agreement (BTA) with Patanjali Natural Biscuits Pvt Ltd (PNBPL) to acquire its business of manufacturing, packing & labelling of biscuits, cookies, rusk and other associated bakery products. 

This acquisition will create a unique opportunity for Ruchi Soya Industries to participate & create value in the biscuit, cookies, rusk, and other associated bakery product category in India. It supports Ruchi’s ongoing strategy to consolidate its position as a leading FMCG player. Nevertheless, it has a strong presence in the soya foods and edible oils segment. 

Patanjali’s biscuit portfolio comprises products with a strong market presence and wide reach. The acquisition would give an extensive range of biscuits to Ruchi Soya Industries.  

The slump sale is worth Rs 60.02 crore while the acquisition of the business of PNBPL will be on a going concern basis including the manufacturing facilities. The consideration is payable in two tranches – 25 per cent on signing/execution of BTA and the remaining within 90 days of the closing date (as defined under the BTA). 

As a part of its product expansion strategy, Ruchi Soya had successfully launched honey, high protein Atta and ultra-premium edible oil under Nutrela brand during the last financial year. 

Ruchi Soya is India’s largest manufacturers of edible oil in India and it had been acquired by Patanjali Ayurved in 2019.  

At 12.29 pm on Tuesday, the stock of Ruchi Soya had jumped 5.2 per cent making intra-day high of Rs 776.45 from its previous close of Rs 737.75 on BSE.