Patanjali Foods Limited (PFL), part of Baba Ramdev’s Patanjali Group, has received approval from the Competition Commission of India (CCI) to acquire the home and personal care (HPC) business of Patanjali Ayurved Limited (PAL) for Rs. 1,100 crore. This deal marks a significant step in expanding Patanjali Foods’ presence in the fast-moving consumer goods (FMCG) sector.
The acquisition will help Patanjali Foods enhance its existing portfolio, which already includes several well-known products in the market. The company’s shareholders had already given their consent for this acquisition in August 2024, and the deal is now set to be finalized following the regulatory nod.
Expansion in FMCG Products
The HPC business includes popular categories like dental care, skin care, hair care, and home care products. These products have strong customer loyalty across India and are well-recognized in the FMCG space. With this acquisition, Patanjali Foods aims to strengthen its brand presence and diversify its offerings, leading to improved revenue and profitability.
Patanjali Foods stated, “This acquisition will enhance our FMCG portfolio with recognized brands and will have a positive impact on both revenue and EBITDA.” The company is also looking forward to leveraging product innovation, cost optimization, and operational efficiencies, which will ultimately help increase market share.
Key Terms of the Acquisition
Under the agreement, Patanjali Foods will take over all assets, liabilities, employees, and the entire distribution network related to the HPC business. Additionally, Patanjali Foods and Patanjali Ayurved have agreed to a licensing arrangement that allows the use of trademarks and intellectual property rights related to the acquired product portfolio.
As per the agreement, Patanjali Foods will pay a fee of 3% of the turnover for the use of these trademarks, among other terms.
Fourth Major Acquisition by Patanjali Foods
This is the fourth acquisition by Patanjali Foods in the past three years, underscoring its commitment to becoming a leader in the FMCG sector. With this move, the company is set to enhance its market position and continue its rapid growth trajectory in the industry.
