Patanjali Plans To Sell 20-25% Ruchi Soya Shares Over Next Two Years
Patanjali Ayurveda Ltd. plans to sell shares of Ruchi Soya, the debt-ridden edible oil maker it acquired in December.
“We look to liquidate 20-25 percent of Ruchi Soya shares in the next 2-2.5 years,” yoga guru Ramdev, founder of the ayurvedic products maker, told BloombergQuint in an interview, adding that he has no plans for listing Patanjali.
Ramdev didn’t specify any reason for selling shares of Ruchi Soya. But this comes after Patanjali Ayurveda raised Rs 3,200 crore from a consortium of lenders to buy the insolvent company.
The maker of Dant Kanti toothpaste and Kesh Kanti shampoo, however, said it expected the combined turnover to be Rs 20,000-25,000 crore in the financial year ended March 2020, of which around Rs 13,000 crore would come from Ruchi Soya alone. Patanjali had reported a provisional revenue of Rs 8,294 crore in 2018-19.
Ramdev said the company was aiming to beat Hindustan Unilever Ltd.—India’s largest fast-moving consumer goods maker—in terms of turnover by the next financial year.
Patanjali, according to CARE Ratings, has migrated from merely selling goods to super distributors to self-inventory or cost net freight stockist model to have better control over supply chain and ensuring availability and choice of products based on regional demand. It’s now aggressively eyeing to increase its market share in the country and plans to ramp-up its product line and increase palm plantation.
“In Nutrela, we are planning to bring three new products that will have a potential to reach Rs 1,000 crore in turnover,” Ramdev said. Its Nutrela Gold refined oil will compete with Marico Ltd.’s Saffola Gold in the premium edible oil market. Patanjali’s other products in the pipeline are Nutrela honey and Nutrela protein atta.
Watch the full conversation with Ramdev here...