May 7: Yoga guru Ramdev’s Patanjali has emerged the front runner in the race to acquire debt-ridden FMCG company Ruchi Soya. Patanjali has reportedly made the highest bid for acquiring Ruchi Soya, which is undergoing resolution under the IBC law.
Ruchi Soya entered into Corporate Insolvency Resolution Process (CIRP) during December last year. The company was identified in the second list of the Reserve Bank of India with an outstanding of about Rs 10,000 crore. The company has become one of the hottest debt-ridden companies, attracting major players from the FMCG industry for the bid. Godrej Agrovet, Adani Wilmar, and Emami Agrotech are also eyeing the acquisition of Ruchi Soya apart from Patanjali Ayurved.
Patanjali’s bid is in line with its aim to become a major player in the edible oil segment. The company is said to be keen on acquiring all of Ruchi Soya assets that includes brands like Nutrela, Sunrich, Ruchi Star and Ruchi Gold. Patanjali is also said to be having a particular interest on setting a strong foothold in the soybean oil segment. Ramdev’s Patanjali Ayurved is already in a tie-up with Ruchi Soya for edible oil refining and packaging.
In addition to expanding its territory in the edible oil segment, the acquisition, if taking place, could also accelerate the growth of the company. The company is targeting to surpass the turnover of FMCG major HUL in the coming years.
Patanjali Ayurved CEO Acharya Balkrishna had said in a separate statement recently that the company was growing at a faster pace this year compared to the previous year. With a target of beating HUL’s turnover in 3-4 years, Patanjali could well fuel its growth with the possible acquisition of Ruchi Soya.