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Patanjali Foods weighs a proposal to buy non-food business from Patanjali Ayurved
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
The initial proposal from Patanjali Ayurved Ltd was discussed by the board of directors of Patanjali Foods on Friday, April 26.
Patanjali Foods Limited received a proposal to buy the non-food business from Patanjali Ayurved Limited (PAL).
The board of directors of Patanjali Foods discussed the initial proposal on Friday, April 26, which it received from Patanjali Ayurved Limited.
“The Board accorded its in-principle approval for evaluating the most efficient mode of enhancing synergies with PAL’s non-food portfolio in any manner on an arm’s length basis,” the company said in a release.
To expand its product portfolio, the company acquired the biscuit business of Patanjali Natural Biscuits Private Limited for ₹60.03 crore in May 2021. The company also acquired the noodles and breakfast cereals business for ₹3.50 crore in June 2021 and the food business in May 2022 for ₹690 crore from Patanjali Ayurved Limited.
Patanjali Foods said that the proposal from Patanjali Ayurved may offer synergies to the company’s product portfolio with a variety of brands. It may also contribute to the growth of the company in terms of revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA).
Additionally, Patanjali Foods Ltd registered single-digit growth in revenue in the quarter ended March 2024 compared to the previous quarter. During the March quarter, the company said the prices of edible oils in India remained stable and rebounded from the low levels witnessed in the previous quarter.
The company’s edible oil segment’s volume during the fourth quarter grew mid-single-digit from the year-ago period. Overall, for the 2024 fiscal year, double-digit growth was reported.
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