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Big update on Baba Ramdev’s Patanjali, the issue is worth Rs 1100 crore.

Sagar Patel

By Sagar Patel

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Big update on Baba Ramdev’s Patanjali, the issue is worth Rs 1100 crore.

A big update has emerged on Baba Ramdev’s Patanjali. In fact, Baba Ramdev-led Patanjali Ayurveda has decided to sell its Home and Personal Care business to the listed group company Patanjali Foods Limited for Rs 1,100 crore. The Board of Directors of Patanjali Foods Limited has approved the sale of Patanjali Ayurveda Limited’s ‘Home and Personal Care’ (The Proposed Acquisition of HPC) business has been approved. This will accelerate the company’s transformation into a leading FMCG company.

There are millions of consumers across the country.

The PAL Home Personal Care business currently has a strong brand equity in the Indian FMCG space and has millions of consumers across the country. This HPC business currently includes four core areas – Dental Care, Skin Care, Home Care and Hair Care. This strategic initiative of acquiring the HPC business will strengthen the company’s existing FMCG portfolio with a range of prestigious brands and will also contribute to revenue and EBITA growth.

This is the plan

PFL will acquire the entire HPC business of PAL. This includes all assets and liabilities related to the business, associated employees, distributor network, contracts, licenses, permits, consents and approvals necessary for this transaction. The acquisition is subject to the fulfillment of several conditions precedent which are mainly the regulatory approvals necessary for the transfer of the business enterprise.

Furthermore, the Company also recognises the value of the intellectual property rights of the HPC business product portfolio and its importance in the market. Accordingly, the Company and PAL have also agreed to enter into a licensing agreement allowing the Company to use the trademarks and related intellectual property rights owned by PAL. These pertain to the HPC business product portfolio.

This is the deal amount for the trade transfer.

A lump sum of Rs. 11,00,00,00,000 has been mutually negotiated between the Company and PAL (based on valuation due diligence conducted by independent valuers) for transfer of HPC business. Separate licensing agreements have been agreed between the Company and PAL along with a turnover based fee of 3% and other conditions.

How it became a major player in the consumer goods sector

With this acquisition, the company also affirmed that it reaffirms its position as a strong consumer goods company on its way to becoming a major player in the consumer goods sector, as it committed to its shareholders at the time of its first FPO.

Pursuant to the approval of the PFL Board, the Company will now take the necessary steps to execute definitive agreements in connection with the acquisition, as well as request the necessary approvals for the transaction.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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