Ayurveda major Patanjali Group-owned Ruchi Soya Industries will become debt-free by next month. The company, that currently has some Rs 3,300 crore of debt from commercial lenders, will repay the entire amount in April, said Baba Ramdev while addressing the media today.
Through its Further Public Offer (FPO), the company is aiming to raise Rs 4,300 crore starting today. It has raised Rs 1,290 crore from institutional investors that includes fund houses like Kotak and UTI and Aditya Birla Sunlife Trustee, among others. According to Ramdev, the proceed will be used to repay Ruchi Soya’s debt apart from using it for the company’s expansion.
Earlier in late-2019, the Haridwar-based Patanjali Group had acquired the Nagpur-headquartered Ruchi Soya against Rs 4,350 crore offer. The company is currently paying Rs 1 crore in interests daily.
According to Ramdev, after the successful re-listing of the company, the group management is now planning to list Patanjali Ayurved and other entities like the Divya Pharmacy that owns its herbal-natural medicines business.
Additionally, to improve operational efficiencies and remove any internal competition, all the group’s packaged foods and other consumable businesses are being placed under Ruchi Soya. While, the non-foods portfolio, ayurvedic medicines and healthcare business will be under Patanjali brand.
“We are making sure there is no overlap in the different businesses of the group. This is a marriage between Patanjali and Ruchi Soya. There is now a non-compete agreement between the group firms," Ramdev said. This will further boost its business and help it become the largest consumer goods company in next few years, he added.
In FY21, after adding Ruchi Soya in 2020, Patanjali Group managed to cross the Rs 30,000-crore revenue mark for the first time. Of the multiple group firms, Ruchi Soya’s Rs 16,318 crore sales contributed 54 per cent towards Patanjali’s total revenue. The firm had posted Rs 13,118 crore revenue in FY20. Patanjali Ayurved, the group’s flagship entity till recently, grew its business by 8 per cent and posted Rs 9,784 crore revenue in FY21, said Ramdev. Patanjali Agro emerged as the third largest entity in the group with Rs 1,600 crore revenue, followed by Divya Pharmacy, the group’s medicine making arm.
According to Patanjali’s management, the group extended its distribution network significantly in the recent past. From less than 10,000 distribution points in 2018, its current reach stands at 55,751, including 100 sales depots and over 6,000 distributors. And its total retail reach has crossed 450,000 outlets.
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