The Competition Commission of India (CCI) has approved the acquisition of Patanjali Ayurved’s home and personal care division by Patanjali Foods for ₹1,100 crore.
In a statement, the CCI noted that the deal involves Patanjali Foods Ltd (PFL) acquiring the non-food Home and Personal Care (HPC) business of Patanjali Ayurved Ltd (PAL).
Patanjali Foods specializes in oilseed processing, refining edible oil, producing oil meal, and creating food products from soya, along with a range of fast-moving consumer goods (FMCG), including biscuits and nutraceuticals. The company is also involved in wind energy generation and product trading.
Patanjali Ayurved manufactures and trades in ayurvedic medicines and HPC products, including dairy items and bulk rice trading. Its HPC division offers products in haircare, skincare, dental care, and home care.
In July, Patanjali Foods announced its plans to acquire the HPC business of Patanjali Ayurved for ₹1,100 crore as part of its strategy to strengthen its position in the FMCG sector.
Patanjali Ayurved is a promoter of Patanjali Foods, and this acquisition is classified as a related party transaction conducted at fair value and on an arm’s length basis.
Patanjali Foods, which entered the market through an insolvency acquisition, reported total revenue of ₹31,961.62 crore in the last fiscal year, a slight increase from ₹31,821.45 crore the previous year.
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