Patanjali buys Ruchi Soya for Rs.4,350 cr.
Patanjali Ayurved, won the approval to take over edible oil firm Ruchi Soya . The committee of creditors (CoC) of the debt-laden firm voted in favour of Patanjali Ayurved’s Rs 4,350-crore bid. Ruchi Soya's leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.
Patanjali Ayurved spokesperson S K Tijarawala said the Haridwar-based firm was now free to move forward to take over Ruchi Soya. "On Tuesday, the CoC voted in favour of us. A formal intimation is expected tomorrow (Wednesday)," he said. According to sources, around 96 per cent of the voters were in favour of Patanjali.
Patanjali's success comes after a failed attempt to acquire Ruchi Soya last year and fierce competition from one of the country's leading edible oil players — Adani Wilmar .The deal, which is the first major acquisition for Patanjali, is expected to boost the firm's fortunes and place it among the top of the pecking order of branded edible oil players in the country.
At present, Patanjali is bringing its on-field operations on track by strengthening its presence in general trade by hiring sales personnel in thousands and adding distributors. A top executive from a bank that has lent to Ruchi Soya, said at the time: "If we get a good deal, we will take Patanjali's offer. Adani Wilmar is also willing to let Patanjali buy Ruchi Soya if the latter can match the offer. Prima facie, if the bid is lucrative for bankers, it shouldn't be a problem."
Ruchi Soya came under the hammer when its lenders began an insolvency auction to recover over Rs 9,345 crore worth of loans. In December 2017, the National Company Law Tribunal (NCLT) had referred Ruchi Soya for insolvency proceedings on the application of Standard Chartered Bank and DBS Bank.Patanjali, the lone player left in the contention after the exit of Adani Wilmar, had last month increased its bid value by around Rs 200 crore to Rs 4,350 crore for Ruchi Soya. This excluded capital infusion of Rs 1,700 crore into the company.
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