Ruchi Soya Industries Limited acquires Biscuits business from Patanjali Natural Biscuits Private Limited

The Board of Directors of Ruchi at its meeting held on 10th May, 2021 approved the signing of the Business Transfer Agreement ("BTA") with PNBPL to acquire its business of manufacturing, packing and labelling of biscuits, cookies, rusk and other associated bakery products. Ruchi has a strong presence in the soya foods and edible oils segment. This acquisition will create a unique opportunity for Ruchi to participate and create value in the biscuit, cookies, rusk and other associated bakery product category in India. This acquisition supports Ruchi's ongoing strategy to consolidate its position as a leading FMCG player. As a part of its product expansion strategy, the Company has successfully launched Honey, High Protein Atta and Ultra-premium edible oil under the Nutrela brand last financial year.

Ruchi's foray into the biscuits, cookies, rusk and other associated bakery product category under a slump sale at Rs 60,02,50,000/- will entail acquisition of business of PNBPL on a going concern basis including the manufacturing facilities The transaction includes certain contract manufacturing agreements alongwith transfer of employees, assets (tangible and intangible), current assets and current liabilities, licenses and permits (excluding certain assets and liabilities of PNBPL as specified under the BTA). The consideration is payable in two tranches - 25% on signing / execution of Business Transfer Agreement and balance within 90 days of the Closing Date (as defined under the BTA).

Patanjali's biscuit portfolio comprises of products with strong market presence and wide reach. The acquisition gives Ruchi extensive range of biscuits such as 'Aarogya', 'Butter', 'Cashews', 'Cream', 'Digestive', 'Milk', 'Crackers', 'Jeera', 'Namkeen', 'Marie', 'Nariyal' , 'Nutty', 'Top Lite', 'Twisty Tasty' etc. under biscuits category and 'Atta Doodh' ,'Suji Elaichi' under the Rusk category.

The acquisition of the business of manufacturing, packing and labelling of biscuits, cookies, rusk and other associated bakery products is not only an excellent fit with Ruchi's existing brand portfolio but underscores its commitment to growing the consumer foods business. It is a natural extension to Ruchi's existing brand portfolio through which it serves its consumer base across the country. Ruchi and PNBPL being related parties have agreed to a Non-Compete arrangement under which PNBPL and its respective affiliates including Patanjali Ayurved Limited cannot enter into any competing business of biscuits in India (including entering into joint ventures, partnerships, associations, consultancy or other relationships (directly or indirectly) for any competing business).

Shares of RUCHI SOYA INDUSTRIES LTD. was last trading in BSE at Rs.730 as compared to the previous close of Rs. 674.55. The total number of shares traded during the day was 36876 in over 3092 trades.

The stock hit an intraday high of Rs. 742 and intraday low of 675. The net turnover during the day was Rs. 26864279.

Source : Equity Bulls

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