In an exclusive interview with Anil Singhvi, Managing Editor, G Business, Patanjali Ayurveda founder Yoga Guru Swami Ramdev confirmed that Patanjali Ayurveda, which will run herbal cosmetics and medicine business, will be a non-food company. He said the company would also be listed on the domestic exchange.
He said the company would launch an initial public offering (IPO) in the near future.
Yoga guru Ruchi Soya Industries has also decoded the reason behind renaming Patanjali Foods and revealed that they will soon launch a public offer of Patanjali Ayurveda.
According to Swami Ramdev, Patanjali’s brand value is much higher than Ruchi Soya. He added that more than eight divisions of the food business would be shifted to Ruchi Sowa through a recessionary sale of around Rs 690 crore.
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In the last two years, Ramdev said, “We have not only turnaround Ruchi Soa, but also doubled Ruchi Soa’s overall turnover, increasing its profits 2.5-3 times.” This was largely due to good corporate governance, strong distribution and brand value among others, he said.
Citing the DRHP / RHP paper as a promise, Ramdev added, “We are looking for investor benefits as promised and we want to move our consumer and retail base forward.” He said this when Anil Singhvi wanted to know the reason for shifting business at such a low price.
He confirmed that Patanjali Ayurveda, which will run the herbal cosmetics and mediation business, will be the only non-food company and is considering launching an initial public offering (IPO) soon.
Regarding debt reduction, Ramdev said, “Ruchi Soya has already been made a debt-free company, but we will make Patanjali Ayurveda a debt-free company by the end of this year.”
“As per the rules, we have to dilute more than 6 per cent stake in Ruchi Soya Fund and the collected Patanjali Ayurveda will be used for debt relief,” he explained.
“Patanjali will play a key role in promoting Prime Minister Narendra Modi’s self-reliant India,” Ramdev said, referring to two business associations in the food and herbal cosmetics sector. The company is working in the same direction and will take Patanjali Foods (Ruchi Soya) to a new level. ”
“We are planning a turnover of around Rs 5,200 crore and EBITDA is moving ahead with new entity Patanjali Foods for around Rs 800 crore,” he said.
Ruchi Soya Industries announced the name change at a board meeting on Wednesday, May 18. According to the board, Patanjali Foods will be renamed Ruchi Soya Industries Limited.
The board has approved a business transfer agreement with Patanjali Ayurveda Limited to acquire food retail business, which includes manufacturing, packaging, labeling and retail of some food products, Ruchi said in a regulatory filing on Wednesday.