Ruchi Soya’s board of directors has approved enhancing synergies with Patanjali Foods. In an interview with CNBC-TV18, Sanjeev Asthana, CEO of Ruchi Soya, said that the plan is to bring Patanjali's entire food portfolio into the company. He, however, clarified that the brands will remain separate. Additionally, there is no intention of bringing Patanjali's non-food business, he shared.

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“All the decisions have been made with twin purposes. One, rationalize the product portfolio between effective companies for better clarity for all stakeholders, which means that entire foods’ portfolio will be with Ruchi Soya and non-foods part of the business shall remain with Patanjali,” said Asthana.

Asthana said that he expects to see strong growth from the acquisition of Patanjali’s food business. He added that he anticipates growth in the range of 10-15 percent in the said segment. He highlighted that the company is likely to see an EBITDA ( earnings before interest, taxes, depreciation and amortization) potential of around Rs 4,000 crore from Patanjali’s additional food business.

He said, “We sought an approval from the board last night to make an application for necessary approvals and rename the company to Patanjali Foods Limited, but that is subject to all the necessary approvals that would be required before we can move ahead in that direction.”

“We are anticipating a growth rate between 10 percent and 15 percent on an overall basis and for the foods business also,” said Asthana.

Also Read: Ruchi Soya surges nearly 15% post listing of FPO shares

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First Published:Apr 11, 2022 10:53 AM IST