Patanjali Foods Ltd, a listed entity under the Baba Ramdev-led Patanjali group, has announced the acquisition of Patanjali Ayurved’s home and personal care business for Rs 1,100 crore. This strategic move aims to transform Patanjali Foods into a prominent player in the FMCG sector, leveraging the strong brand equity and consumer base of the acquired business.
According to a regulatory filing, Patanjali Foods’ board has approved the acquisition through a slump sale arrangement, encompassing all aspects of Patanjali Ayurved’s non-food business. This includes assets, properties, contracts, licenses, and liabilities associated with segments such as hair care, skin care, dental care, and home care.
“The acquisition of the home and personal care business from Patanjali Ayurved will accelerate our transition into a leading FMCG company,” stated Patanjali Foods in its filing. The acquired business currently holds a robust position in India’s FMCG market, enjoying significant brand loyalty across its product categories.
As part of the transaction, Patanjali Foods and Patanjali Ayurved have agreed to a licensing arrangement that allows Patanjali Foods continued use of trademarks and associated intellectual property owned by Patanjali Ayurved.
“The valuation exercises conducted by independent valuers have resulted in a lump sum consideration of Rs 1,100 crore for the transfer of this business,” the filing added, highlighting the mutually negotiated nature of the transaction.
This acquisition is expected to consolidate the ‘Patanjali’ brand’s presence in the FMCG sector, driving synergies in brand equity, product innovation, cost optimization, infrastructure efficiencies, and market share expansion.
Following the board’s approval, Patanjali Foods will proceed with executing definitive agreements and obtaining necessary approvals from shareholders, lenders, and regulatory authorities to complete the transaction.
The move underscores Patanjali’s strategic realignment to focus and strengthen its foothold in key consumer product categories, aligning with broader market trends and consumer preferences in India’s competitive FMCG landscape.