In a significant move, the Baba Ramdev-led Patanjali Ayurved has agreed to sell its home and personal care business to the listed group firm, Patanjali Foods Ltd, for an estimated value of Rs 1,100 crore. This decision is expected to help Patanjali Foods transition into a full-fledged Fast-Moving Consumer Goods (FMCG) company.
The acquisition involves the transfer of Patanjali Ayurved’s non-food business undertaking, including movable assets, immovable properties, contracts, licenses, employee base, and certain assumed liabilities. This transaction, subject to the approval of shareholders, lenders, and other necessary approvals, will consolidate the ‘Patanjali’ brand FMCG products portfolio.
Patanjali Ayurved’s home and personal care business operates in four key segments: dental care, skin care, home care, and hair care. The company enjoys a strong brand equity and a loyal consumer base in India’s FMCG space.
Post-acquisition, Patanjali Foods and Patanjali Ayurved have also agreed to a licensing agreement, enabling the use of Patanjali Ayurved’s trademarks and associated intellectual property rights.
The acquisition is expected to bring multiple key synergies, including brand equity enhancements, product innovations, cost optimization, infrastructure and operational efficiencies, and a positive impact on market share, according to Patanjali Foods. Following the board’s approval, Patanjali Foods will now proceed with executing definite agreements and applying for necessary approvals required for the transaction.
