Patanjali Foods Mulls Acquisition Of Dental, Personal Care From Parent

Patanjali Foods Ltd. on Friday said that it will evaluate a proposal to acquire the non-food business of promoter group, Patanjali Ayurved Ltd.

While the company did not mention the categories of non-food products it plans to acquire, it will consider acquiring products falling into dental care, household care and personal care categories, according to a person with knowledge of the matter, who spoke with NDTV Profit on the condition of anonymity.

The Ayurvedic division—which includes syrup, tablets and other pharmaceutical products—will remain with the parent company.

The non-food business' sales stood at Rs 3,893.22 crore for the nine-month period ended December 2023, constituting 80% of the promoter's overall turnover, according to filings made with the Registrar of Companies.

"The board accorded its in-principle approval for evaluating the most efficient mode of enhancing synergies with Patanjali Ayurved non-food portfolio in any manner on an arm’s length basis," Patanjali Foods said in a regulatory filing. A potential acquisition may offer synergies to Patanjali Foods' product portfolio and contribute to revenue and Ebitda growth.

A three-member committee has been formed to study the proposal.

The committee has been authorised to carry out due diligence and appoint professionals to negotiate the terms and conditions of the deal. They will submit the report to the board in the next 10-15 days for final approval, the person quoted above said.

In 2021, Patanjali Ayurved transferred its biscuits, breakfast cereals and noodles businesses to its subsidiary for about Rs 65 crore, and then the food business for Rs 690 crore in July 2022.

In September 2022, Baba Ramdev announced that the Patanjali Group plans to list Patanjali Ayurved, Patanjali Wellness, Patanjali Lifestyle, and Patanjali Medicine in the next five years. At present, Patanjali Foods is the only group company that’s listed on the stock market.