Acharya Balkrishna Appointed Ruchi Soya Chairman And Managing Director, Swami Ramdev To Be Director On New Board
Acharya Balkrishna has been appointed as the chairman and managing director of Ruchi Soya Industries Ltd. and Swami Ramdev as non-executive director on its newly constituted board, according to a BSE filing.
Patanjali Ayurved on Wednesday completed its first big acquisition by paying Rs 4,350 crore to take over soya food brand Nutrela-maker Ruchi Soya through an insolvency process.
Besides, Acharya Balkrishna would also be chairman and Swami Ramdev a member of the corporate social responsibility committee of the board of Ruchi Soya.
The acquisition will help Patanjali acquire edible oil plants as also soyabean oil brands such as Mahakosh and Ruchi Gold.
Sources said Patanjali settled Rs 4,350 crore of dues Ruchi Soya had towards financial creditors by infusing Rs 1,100 crore equity and arranging another Rs 3,250 crore via debt.
The acquisition of Ruchi Soya by Patanjali Ayurveda has been completed, sources said, adding that the amount has been transferred to an escrow account and disbursals to financial creditors are in process.
In December 2017, the National Company Law Tribunal ordered start of insolvency proceedings against Ruchi Soya on application of Standard Chartered Bank and DBS Bank. Shailendra Ajmera, part of consultancy firm EY, was appointed as resolution professional.
Ruchi Soya is the second big insolvency case to be completed this week. World's largest steel maker ArcelorMittal together with Japan's Nippon Steel on Monday completed the acquisition of Essar Steel for Rs 42,000 crore.
Both the companies were taken to insolvency court over unpaid dues of lenders. Their bankruptcy proceedings had been pending for two years. Their resolution will help lenders such as State Bank of India clear a good part of bad loans, sources said.
In April 2019, Patanjali Ayurved had received approval of financial creditors to acquire Ruchi Soya. The NCLT gave its nod to the resolution plan in early September.