Ruchi Soya said that its board has decided to change the name of the company from “Ruchi Soya Industries Limited” to “Patanjali Foods Limited” subject to statutory and regulatory approvals. “Business Transfer Agreement (“BTA”) with Patanjali Ayurved Limited (“PAL”) to ; acquire the food retail business undertaking of PAL which consists of manufacturing, packaging, labeling and retail trading of certain food products along with manufacturing plants located at Padartha, Haridwar, and Newasa, Maharashtra (“Food Retail Business Undertaking”), as a going concern on a slump sale basis subject to approval of shareholders,” the filing said.
The company, in a filing, said that it will be taking over the food retail business of Patanjali Ayurved Limited. Shares of Ruchi Soya were up 4.88 per cent at Rs 1,136.70 in afternoon trade.
“The transaction shall consist of transfer of employees, assets (excluding Patanjali’s brand, trademarks, designs, and copyrights), current assets (excluding debtors, vehicles, cash, and bank balance) contracts, licenses and permits, distribution network, customers related to the Food Retail Business Undertaking of Patanjali Ayurved,” the company informed in an exchange filing.
Ruchi Soya is recognized amongst the largest branded oil packaged food company. Its ‘Ruchi Gold’ brand has a market leadership position, on account of being India’s highest-selling palm oil brand and also the pioneers and largest manufacturers of soya foods in India under the brand name of “Nutrela”.
The Company is recognized amongst the largest branded oil packaged food company with a strong portfolio of brands in various types of cooking oils under categories such as palm, soybean, mustard, sunflower, cottonseed etc. with robust brands portfolio of “Ruchi Gold”, “Mahakosh”, “Sunrich”, Ruchi Star and Ruchi Sunlight.
Ruchi Soya was bought by Patanjali Ayurved for Rs 4,350 crore in the year 2019 under an insolvency process. In December 2017, the National Company Law Tribunal (NCLT) ordered start of insolvency proceedings against Ruchi Soya on application of Standard Chartered Bank and DBS Bank.
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