Ruchi Soya Industries has announced that it will buy Yoga Guru Baba Ramdev’s company Patanjali Natural Biscuits Private Limited (PNBPL) incorporated on 04-08-2016 for Rs 60.02 crore. In this context, the company reported to the stock market. The company said that its board of directors had on May 10 approved the signing of a trade transfer agreement with Patanjali Biscuit. The acquisition will be completed in the next two months.
Ruchi Soya will pay the Sum in two instalments to Patanjali Natural Biscuits
Under the business transfer agreement, the acquisition amount has been fixed at Rs 60.02 crore. The amount has been calculated based on declining sales. Ruchi Soya further said that the company would pay the acquisition amount in two instalments. Of this, 15 crore rupees will be given on or before the date of the agreement, while the remaining 45.01 crore rupees will be paid within 90 days of the agreement.
The non-competitive agreement also agreed
Not only this, but the company also said that he and Patanjali Biscuits have also agreed to a non-competitive agreement. Under which, PNBPL and its related affiliates cannot directly or indirectly enter into any of Biscuit’s competitive business in India.
A company buried under debt was interested.
Ruchi Soya is doing business in India with brands like Nutrela (soya chunks), Mahakosh (Refined soybean oil), Ruchi Gold (Pamolein Oil), Ruchi Star and Sunrich. Ruchi Soya was founded back in 1985.
Ruchi Soya was a debt-ridden company in 2019 with a total debt of 4,543.49 crores (as per the balance sheet of 2019).
In 2019, Patanjali Ayurveda bought the company for Rs 4350 crores through an insolvency process. the National Company Law Tribunal ordered an insolvency process in 2017 against Ruchi Soya Ltd on the application by Standard Charted Bank and DBS bank who were the major financer of the group.
For this, Patanjali also took a loan of Rs 3250 crores. So even though one company is seen buying another company on paper but practically both companies belong to Baba Ramdev. Patanjali was started in 2006 by Baba Ramdev and Acharya Balakrishna.