Patanjali Foods Expands FMCG Portfolio with Rs 1,100 Crore Acquisition of Home & Personal Care Segment

Patanjali Foods operates in the fast-moving consumer goods and health products sectors

Patanjali Foods has received the green light from the Competition Commission of India (CCI) to acquire the home and personal care division of Patanjali Ayurved for Rs 1,100 crore. This strategic acquisition aims to enhance Patanjali Foods' footprint in the fast-moving consumer goods (FMCG) sector. 

The CCI announced on Tuesday that the proposed acquisition involves Patanjali Foods acquiring the non-food business of Patanjali Ayurved Ltd (PAL), specifically its Home and Personal Care (HPC) division. Patanjali Foods focuses on processing oilseeds, refining crude oil for edible consumption, and producing oil meal along with various food products, including soy products and other value-added offerings through both upstream and downstream processes.

Additionally, Patanjali Foods operates in the fast-moving consumer goods and health products sectors, primarily dealing with food items, biscuits, and nutraceuticals. The company also generates power through wind energy and engages in trading a variety of products.

Patanjali Ayurved, a key promoter of Patanjali Foods, is recognized for its manufacturing, trading, and packaging of ayurvedic medicines and HPC products, which encompass haircare, skincare, dental care, and home care items. This acquisition is part of Patanjali Foods' effort to solidify its position as a leading player in the FMCG market.

In July of this year, Patanjali Foods announced its intention to acquire Patanjali Ayurved's HPC business for Rs 1,100 crore as part of its growth strategy. The acquisition is classified as a related party transaction conducted at fair value and on an arm's length basis. Patanjali Foods reported total revenue of Rs 31,961.62 crore for the previous fiscal year, compared to Rs 31,821.45 crore the year before.