Patanjali Foods to acquire Patanjali Ayurved’s home and personal care business at Rs. 1100 crore valuation

Patanjali Foods on June 1, said that it will be buying its parent Patanjali Ayurved’s home and personal care business at a valuation of Rs. 1100 crore.

Patanjali Food’s board has granted approval to the company’s proposal of the acquisition.

In an exchange filing, the company said, "The board of Patanjali Foods Ltd has approved the proposal of Patanjali Ayurved Ltd's to acquire its Home and Personal Care Business, accelerating the company's transition into a leading FMCG company. The HPC business of PAL currently has a strong brand equity in India's FMCG space and enjoys a loyal consumer base across the country. It presently caters to four key segments, being (i) dental care, (ii) skin care, (iii) home care, and (iv) hair care.”

"The transfer has been mutually negotiated for a lump sum consideration of Rs 1,100 crore, which shall be subject to customary closing date adjustments and on such other terms as set out in the business transfer agreement," the company further stated in the filing.

The acquisition of the home and personal care business will lead to a consolidation of the 'Patanjali' brand’s FMCG products portfolio.

The company shared, "The acquisition will bring along with it multiple key synergies in terms of brand equity and enhancements, product innovations, cost optimisation, infrastructure & operational efficiencies and positive impact on market share.”