New Delhi: Baba Ramdev-led Patanjali Ayurved has decided to sell its home and personal care business to listed group firm Patanjali Foods Ltd for Rs 1,100 crore.
The acquisition will help edible oil firm Patanjali Foods to become an FMCG company. In a regulator filing, Patanjali Foods informed that the board has approved the “acquisition of the entire non-food business undertaking i.e. hair care, skin care, dental care and home care carried out by Patanjali Ayurved, including but not limited to all movable assets, immovable properties, contracts, licenses, books and records, employees and certain assumed liabilities of PAL through a slump sale arrangement on a going concern basis”.
This is subject to the approval of shareholders, lenders and other necessary approvals. The deal will accelerate the company’s transition into a leading FMCG company, Patanjali Foods said. The home and personal care business of Patanjali Ayurved currently has strong brand equity in India’s FMCG space and enjoys a loyal consumer base, the filing said. Presently, it caters to four key segments – dental care, skin care, home care, and hair care.