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Rajkotupdates.news : ruchi soya to be renamed patanjali foods company board approves stock surges. The name of Ruchi Soya Industries stands changed to Patanjali Foods from June 24. The firm has also received the certificate of incorporation from the Ministry of Corporate Affairs, it said in an exchange filing. In May, Ruchi Soya Industries announced the acquisition of Patanjali Ayurved’s entire food business for Rs 690 crore to accelerate its transition into an FMCG company.
The acquired food business consists of 21 products, such as ghee, honey, spices, juices, and atta, to name a few. The board of Patanjali Ayurved had also approved the transfer of its food business to Ruchi Soya.
Ruchi Soya to be Retitled Patanjali Foods Company
Ruchi Soya to Retitle Patanjali Foods Company Board Favors, Stock Surges India’s Ruchi Soya, the leading manufacturer of edible oils and soya foods, has given board approval to change its name to Patanjali Foods Company. This change comes after Patanjali Ayurved, a consumer goods company that produces natural and Ayurvedic products, acquired Ruchi Soya in 2019. The stock surged 10% after the board approval news, highlighting this development’s significance. Ruchi Soya is an Indian agri-food company specializing in edible oils and soya foods. Founded in 1986, the company has a strong presence in the Indian market and is one of the country’s largest manufacturers of edible oils. Its product portfolio includes a range of cooking oils, vanaspati, and soya foods.
A Brief Overview of Patanjali Foods
Patanjali Ayurved is a consumer goods company that produces natural and Ayurvedic products. Founded in 2006 by Baba Ramdev and Acharya Balkrishna, the company has diversified its product offerings in recent years to include everything from personal care items to food and beverages. Patanjali has gained a significant market share in India and is known for its strong branding and focus on natural products.
Ruchi Soya Acquisition by Patanjali
Patanjali Ayurveda acquired Ruchi Soya in 2019 for around 4,350 crore rupees (approximately $590 million). The acquisition was part of Patanjali’s expansion plans and was seen as an opportunity to diversify its product offerings. The purchase also gave Patanjali a foothold in the edible oil and soya foods market, which Ruchi Soya dominated.
Reasons for Ruchi Soya to Patanjali Foods Company
The Ruchi Soya to Patanjali Foods Company services several purposes. First, it unifies the Patanjali brand under one umbrella, making it easier for consumers to recognize and recall it. Second, it aligns with Patanjali’s expansion plans, which involve diversifying its product portfolio and increasing its market share. Finally, it improves consumer perception of Ruchi Soya’s products by associating them with Patanjali’s trusted and well-established brand.
Benefits of Ruchi Soya to Patanjali Foods
Ruchi Soya to Patanjali Foods Company expect to result in several benefits. First and foremost, it will increase brand recognition and recall for both Ruchi Soya and Patanjali. This will result in better market positioning and an increased customer base. Additionally, the synergy between Patanjali and Ruchi Soya’s products expect to result in cross-selling opportunities and increased revenue for both companies. The Ruchi and Patanjali food collections have several product overlaps (such as ghee, honey, and atta), which could lead to misperception. Ram Bharat, MD, Ruchi Soya says, “We consume a non-compete contract with Patanjali; it will never launch a mealtime cereal or nutraceutical product that will have a conflict of interest with Ruchi.”
Regarding products such as atta, Bharat says that Nutella atta is a protein-enriched variant quite different from Patanjali’s atta. Similarly, Ruchi ghee mixes intimidate and cow milk, whereas Patanjali sells pure cow ghee. “The idea is to ensure that customers remain within the Patanjali fold and don’t go outside looking for different products,” explains Balkrishna.
Impact of the Renaming on Ruchi Soya’s Shareholders
The news of the board’s approval for renaming Ruchi Soya to Patanjali Foods Company. It met with a surge in the company’s stock price. The stock surged 10% after the announcement, indicating investor confidence in the new branding and the potential for increased revenue. Analysts predict that the renaming will result in better market positioning and an increased customer base, resulting in long-term benefits for Ruchi Soya’s shareholders.
Ruchi Soya Surges 8% After Board Of Directors Renames the Company To Patanjali Foods
The board of directors of Patanjali Group-owned Ruchi Soya Limited. It has decide to change the company’s name to Patanjali Foods Limited or any other name as made available by the Registrar of Companies, Ruchi Soya notified in a regulatory filing on Monday. Following the development, Ruchi Soya surged as much as 8 percent. At 12:01 pm, the shares of Ruchi Soya were up 5.5 percent at Rs 975.
According to the regulatory filing, the company will also be evaluating the most efficient mode of enhancing synergies. In with the Patanjali Ayurveda Limited food portfolio in any manner on an arm’s length basis and authorizing officials. And also, The company to negotiate, finalize, execute, and deliver the terms and conditions of the proposed transaction.
How Patanjali’s Technology Innovations are Adding to its Strength?
At the time of the takeover, 12 out of the 23 manufacturing facilities of Ruchi Soya were functional. And also today, that count is 17. And also, “The idea was to brand each plant profitable, and to do that. It was important to optimize the resources deployed there,” says COO Khanna. “We improved production capex. If we ran a refinery at 40-50 percent efficiency, we would have increased it to 60-65 percent. Similarly, if we were working at 30 percent in crushing, we are in the 50 percent bracket now.”
To make this happen, the company introduced skills in multiple areas and focused on compliance. “Our last year’s performance has been the best in the history of Ruchi Soya. In which proves that our strategy was right,” says Khanna. “It helped us in rebuilding and targeting higher throughput as well as bottom-line improvement.”
Ruchi Soya Industries’ board has also approved for evaluation the most efficient mode of enhancing synergies with Patanjali Ayurved Limited. “We at this moment wish to inform you that the Board of Directors of Ruchi Soya Industries Limited had at its meeting held on April 10, 2022. And also, It accorded its in-principal approval for evaluating. In the most efficient mode of enhancing synergies with the Patanjali Ayurved Limited food portfolio in any manner on arm’s length basis (proposed transaction). According to BSE filing by Ruchi Soya Industries Limited.
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