Patanjali Ayurved sells Home and Personal Care biz to Patanjali Foods for Rs 1,100 crore

CHENNAI: Baba Ramdev-led Patanjali Ayurved has announced the sale of its home and personal care business to Patanjali Foods Ltd for Rs 1,100 crore.

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, as per a release.

This acquisition is aimed at transforming Patanjali Foods into a formidable FMCG company.

According to regulations filed by Patanjali Foods, the board has sanctioned the acquisition of the entire non-food business segment of Patanjali Ayurved through a slump sale arrangement, encompassing hair care, skin care, dental care, and home care segments.

The transaction, subject to necessary approvals, is expected to accelerate the company's transition and consolidate its presence in the FMCG sector.

Patanjali Ayurved's home and personal care business currently enjoys strong brand recognition and a dedicated consumer base in India. The business spans four key categories: dental care, skin care, home care, and hair care.

Patanjali Foods and Patanjali Ayurved have also agreed to a 20-year licensing arrangement for a 3 per cent turnover based fee along with other conditions. The acquisition will lead to a consolidation of 'Patanjali' brand FMCG products portfolio, the release said.

This well-negotiated transaction, valued at Rs 1,100 crore based on evaluations by independent valuers, aims to integrate multiple key synergies including brand equity, product innovations, cost efficiencies, and market share growth.

Upon receiving board approval, Patanjali Foods will move forward with executing the final agreements and obtaining the necessary regulatory approvals to complete the acquisition.