CCI approves Patanjali Foods' Rs 1,100 crore acquisition of Patanjali Ayurved's home and personal care business

In a major development, the Competition Committee of India (CCI) on Tuesday approved the Rs 1,100 crore acquisition of Patanjali Ayurved's home and personal care (HPC) business by Patanjali Foods.

The acquisition, part of a strategic move to strengthen Patanjali Foods' position in the fast-moving consumer goods (FMCG) sector, will bring the HPC segment-comprising haircare, skincare, dental care, and home care products-under its umbrella.

The CCI, in a statement, clarified that the "proposed combination involves the acquisition of Patanjali Ayurved Ltd's (PAL) Home and Personal Care business division (non-food business) by Patanjali Foods Ltd (PFL)." This acquisition is a related party transaction, carried out on a fair value and arms' length basis.

Patanjali Foods, originally acquired by Patanjali Ayurved through an insolvency process, has since grown into a significant player in the edible oil and FMCG sectors. Beyond edible oil processing and refining, the company operates across a wide range of products, including soya-based food items, nutraceuticals, and health products. Additionally, it has ventured into renewable energy, specifically wind power generation.

The acquisition of Patanjali Ayurved's HPC division comes as part of Patanjali Foods' broader vision to expand into FMCG and fast-moving health goods. This move is seen as a natural progression for the company, which posted total revenue of Rs 31,961.62 crore in the last fiscal year, reflecting its growing dominance in the sector.

Patanjali Ayurved, led by Baba Ramdev, remains a key promoter of Patanjali Foods and continues to play a pivotal role in the strategic decisions of the group. The home and personal care business, which includes a wide range of products, is set to bolster Patanjali Foods' market presence in the competitive FMCG space.