fbpx

Add Your Heading Text Here

Add Your Heading Text Here

Why Patanjali And Adani Wilmar Are Fighting Over Ruchi Soya

| Published on August 28, 2018

Patanjali Ayurved has approached the NCLT a day after lenders of Ruchi Soya voted in favour of Adani Wilmar. Patanjali has said that the process was not properly followed by lenders during Rs 6,000 crore takeover bid. Now let’s know why both these companies are eying for Ruchi Soya?

Current condition of Ruchi Soya

Why Patanjali And Adani Wilmar Are Fighting Over Ruchi Soya
Source

Ruchi Soya is under debt of about Rs 12,000 crore. The company has many manufacturing plants with leading brands including Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold under its belt. Lenders will take a lower haircut than expected. Adani Wilmar Ltd is set to acquire Ruchi Soya and this will not increase its market share, but also keep Patanjali Ayurved Ltd from away from ruling the market.

Also Read:How Colgate Is Planning To Regain Its Share From Patanjali

Why Ruchi Soya Picked Adani Wilmar?

Why Patanjali And Adani Wilmar Are Fighting Over Ruchi Soya
Source

Adani Wilmar had offered Rs 5,474 crore, of which Rs 4300 crore would be paid to banks while Patanjali had offered Rs 5,765 crore, of which Rs 4,065 crore was for payment to lenders. Ruchi Soya preferred Wilmar even after getting a better offer from Patanjali in terms of total value but Adani will help the company better in the settlement of current loans.

Why is this deal so important?

Why Patanjali And Adani Wilmar Are Fighting Over Ruchi Soya
Source

Branded packaged edible oils are getting popular in India with a 40% share of total consumption, according to a recent report. Indians are not confident about the quality of loose oils and the shift to packaged oils is occurring at a swift rate. It is expected that packaged edible oil sales will increase by 6-8% annually over the next five years, with soy oil, sunflower oil and blended oils leading growth. Adani currently has a market share of 19% and adding Ruchi Soya’s brands 14% market share, Adani Wilmar will have a third of the market.

Why Patanjali And Adani Wilmar Are Fighting Over Ruchi Soya
Source

Patanjali wanted to acquire Ruchi Soya and achieve the second position in the packaged edible oils business.

Interested in getting all the latest news from the world of Marketing, Advertising and Startups? Subscribe to our Scoop by Marketing Mind newsletter so that you don’t miss any updates.

Related Posts

Mock
Mock

Latest

Mock