The Competition Committee of India (CCI) has authorised Patanjali Foods' acquisition of Patanjali Ayurved's home and personal care (HPC) business for Rs 1,100 crore, marking a significant move in the industry.
The acquisition will unite the haircare, skincare, dental care, and home care product segments under one roof as part of a calculated strategy to fortify Patanjali Foods' position in the fast-moving consumer goods (FMCG) industry.
The CCI, in a statement, clarified that the "proposed combination involves the acquisition of Patanjali Ayurved Ltd's (PAL) Home and Personal Care business division (non-food business) by Patanjali Foods Ltd (PFL)." This acquisition is a related party transaction, carried out on a fair value and arms' length basis.
Since being bought by Patanjali Ayurved through an insolvency procedure, Patanjali Foods has developed into a major force in the FMCG and edible oil industries. In addition to processing and refining edible oils, the company offers a variety of other products, such as culinary items based on soy, health products, and nutraceuticals. It has also dabbled in renewable energy, notably wind power generating.
A larger goal of Patanjali Foods is to diversify into FMCG and fast-moving health products, and this includes the acquisition of Patanjali Ayurved's HPC division. This action is viewed as a logical next step for the business, which last fiscal year reported total sales of Rs 31,961.62 crore, demonstrating its increasing supremacy in the industry.
Under Baba Ramdev's direction, Patanjali Ayurved is still a major supporter of Patanjali Foods and a major factor in the group's strategic choices. With a large product line, the home and personal care division is expected to increase Patanjali Foods' market share in the cutthroat FMCG industry.
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