To accelerate the company’s transitioning into one of India’s leading FMCG companies, Patanjali Foods has approved the proposal to acquire Patanjali Ayurved’s Home and Personal Care Business, comprising four key segments- dental care, skin care, home care, and hair care, on a slump sale basis for Rs 1,100 crores.
This Business Transfer Agreement of the non-food business undertaking by Patanjali Food from one of its promoters- Patanjali Ayurved is likely to result in the expansion of the product portfolio of the Ram Bharat and Acharya Balkrishna led company.
As part of the approval of this acquisition by Patanjali Foods and Competition Commission of India, Patanjali Ayurved will be payable for 20% of the Purchase Price by Patanjali Foods in the 1st Tranche and 2nd Tranche followed by 45% in the 3rd Tranche, 10% in 4th Tranche and the remaining 5% in 5th Tranche.
This entire acquisition by Patanjali Food includes all the assets and liabilities attributable to the business, relevant employees, distribution network, contracts, licenses, permits, consents, and approvals integral to this operation as well as the value of the intellectual properties of the HPC Business’ product portfolio and its market importance.
Accordingly, Patanjali Foods and Patanjali Ayurved have also agreed to enter into a licensing agreement permitting the usage of trademarks and associated intellectual property rights, owned by Patanjali Ayurved that relate to the product portfolio of the HPC Business for a 3% turnover based fee along with other conditions as agreed mutually by both companies.
