Home Featured Rajkotupdates.News : Ruchi Soya To Be Renamed Patanjali Foods Company Board Approves Stock Surges

Rajkotupdates.News : Ruchi Soya To Be Renamed Patanjali Foods Company Board Approves Stock Surges

by Mostafijur Rahaman

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Yoga Guru Ramdev-led Patanjali Ayurveda Ltd is selling its food retail business to Ruchi Soya Industries Ltd. The acquisition is valued at Rs 690 crore based on the fair market value of all fixed assets and current assets on a slump sale basis.

Ruchi Soya To Be Renamed Patanjali Foods Company Board

The board of Ruchi Soya Industries limited on Monday gave its approval to change the company’s name to Patanjali Foods. The move comes after the company received an overwhelming response from investors in its follow-on public offering (FPO).

The FPO raised Rs4,300 crore for the company. A large portion of the funds from the FPO will be used to pay off Ruchi Soya’s debt. The company is planning to make its entire business debt-free in the next three to four years, a spokesperson told the media.

Yoga Guru Ramdev-led Patanjali Ayurved had acquired the food business of Ruchi Soya in 2019 for around 4,350 crore rupees on a slump sale basis. The acquisition will help Patanjali expand its product portfolio and enhance its market share.

This acquisition will also help the company gain a foothold in the dairy and staples business, which is a key focus area for them. With this, the company can leverage its existing infrastructure and distribution network. This will result in lower costs and improve the profitability of the business.

The company is also planning to expand its presence in the retail space. They are looking to open several stores in the coming months, which will boost their sales and customer base.

According to a recent report by the media, the company has also diversified its manufacturing facilities to produce a wide range of products. This will ensure that the company remains competitive in the future, especially when the GST rate is lowered to 18%. Currently, the company’s production units are operating at capacity. The new expansion will allow the company to increase the production of these new products and improve its profitability. The expansion will also allow the company to enter the new markets of the US and Canada. The company is also focusing on increasing the quality of its products. This will help it to increase its market share in the global markets. The company is expected to reach double digit EBITDA in the next couple of years. This will help the company to become one of the leading FMCG companies in the country.

Patanjali Ayurved’s Food Business To Be Acquired By Ruchi Soya

Ruchi Soya has agreed to acquire Patanjali Ayurved’s food business for around Rs 690 crore. This will boost the company’s presence in the FMCG segment. It will also allow the company to tap the growing demand for ayurvedic products. It will also evaluate the most efficient mode to enhance synergies with Patanjali’s food portfolio. The acquisition will help the company to achieve its target of becoming India’s largest food and FMCG company in five years.

The deal will see Patanjali Ayurved’s ghee, honey, spices, juices, and flour business being transferred to the company. This will allow the company to tap into a new market and expand its distribution channels.

In addition to this, the company will also have the rights to use the “Patanjali” brand name and its logo in all its operations. The move will make the company a major player in the fast-growing FMCG market. The transaction will also result in an increase in the company’s share capital. The Board of Directors of the company approved this proposal on May 9.

Ram Bharat, Managing Director of Ruchi Soya, said that they would evaluate the best way to enhance synergies with the Patanjali Ayurved’s portfolio. He also added that they will take a holistic approach to the merger, which will benefit both companies in the long run. The company will also seek to increase its presence in the fast-growing e-commerce market, which is a growing segment in the Indian economy.

The company’s shares have surged as much as 8 per cent after the announcement. The stock is trading at Rs 975 on the BSE.

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Ruchi Soya To Evaluate Efficient Mode Of Enhancing Synergies With Patanjali Ayurved’s Food Portfolio

Ruchi Soya’s board has approved the company to evaluate the most efficient mode of enhancing synergies with Patanjali’s food portfolio. The move will help the company to increase its revenues and market share. The acquisition will also boost its research and development capabilities. The company will have access to a large number of consumers. The deal will also benefit the company’s distributors and suppliers. The new product portfolio will be sold through Ruchi Soya’s more than 100 sale depots and 4,700 distributors. These channels reach over 4.5 lakh retail outlets in urban, semi-urban, and rural areas of India. In addition, the company’s products are sold on e-commerce platforms like Flipkart and Amazon.

The acquisition will lead to a rapid growth in sales, especially in the southern and northeastern regions of the country. It will also strengthen its presence in the e-commerce and modern grocery store sectors. The company’s annual turnover is expected to double in the next five years. The combined business of the two companies will be the second largest food and FMCG firm in the country.

Ramdev-led Patanjali Ayurved has a strong distribution network and a high level of brand awareness. Its products are available in more than 2,700 stores and 30,000 pharmacies across the country. The company has a significant presence in the e-commerce sector, and it is the biggest player in the e-commerce space in terms of revenue and market share.

The deal is aimed at strengthening the position of Ruchi Soya as a leading FMCG company, and it will help it to gain a greater foothold in the Indian market. The acquisition will enable the company to take advantage of the huge demand for organic and healthy products. It will also provide an opportunity to acquire technology and scale up production.

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Ruchi Soya To Consider Rebranding

The board of Ruchi Soya Industries Ltd has approved renaming the company as Patanjali Foods. The board also gave its in-principle approval to evaluate the most efficient mode of enhancing synergies with Patanjali Ayurved Ltd’s food portfolio in any manner on an arm’s length basis. The rebranding is expected to strengthen the brand value of the company and enhance its presence across the country. The company also consolidated its FMCG portfolio and placed 17 key products like wheat flour and pulses, fruits juices and beverages, dairy products, snacks, spices, jams and ketchup, cow ghee, honey and chawanprash under the new entity.

The company’s management team consists of professionals with extensive experience in the field of edible oils, palm plantations and soya foods. They have extensive knowledge of the business and its nuances and possess decades of hands-on experience in their respective fields. The company also has a dedicated research and development team.

Ruchi Soya is one of India’s largest branded oil packaged foods companies, with brands such as Ruchi Gold, Mahakosh, Sunrich and Nutrela. The company is also involved in oil palm plantations and renewable energy business.

Yoga guru and health enthusiast Ramdev acquired the company through an insolvency process in 2019. Ramdev’s Patanjali Ayurved has been rapidly expanding its product range and market share, and acquiring other companies is part of this strategy.

Rebranding and acquiring the food business of Ruchi Soya will have implications for the company’s suppliers and distributors, as they may have to change their business strategies. It will also require a change in organizational structure, which could impact the efficiency of teams and departments.

As a result, the company’s shareholders will have to approve the proposed name change. The rebranding is expected to boost the company’s brand image and market share, and will benefit its existing employees. The change will also have a positive impact on the company’s profits and revenue. However, it is important that the company manages this transition carefully to minimize any negative effects on its stakeholders. It is also important to develop a strong communication plan with customers.