Ruchi Soya jumps 14% on signing pact with Patanjali; eyes Rs 20,000 crore sales by 2020
Ruchi Soya will manufacture, sell and distribute entire Patanjali's edible oil products across India. The company is expected to be concluded by earlier this year.
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Adani group emerges as highest bidder with Rs 6,000 cr offer for Ruchi SoyaKey Highlights:
- Ruchi Soya shares jump 14%
- Ruchi Soya and Patanjali sign MoU
- Ruchi eyes Rs 20,000 crore sales after pact with Patanjali
Share price of Ruchi Soya climbed by nearly 14% on Thursday after the company signed an memorandum of understanding (MoU) with Yoga Guru Baba Ramdev Ji promoted Patanjali Ayurved Ltd.
At 1210 hours, the shares of Ruchi Soya was trading at Rs 24.40 per piece on BSE above Rs 2.15 or 9.66%.
In a statement to exchange, Ruchi mentioned that it will manufacture, sell and distribute entire range of Pantanjali edilble oils in large packs across India.
Dinesh Shahra, Managing Director & CEO, Ruchi Soya Industries said, " Not only will Ruchi Soya’s widespread distribution network ensure availability and sales of Patanjali’s large packs range; this agreement will further lead to better utilisation of Ruchi’s manufacturing capacity and significantly contribute to cost-efficient operations and augment profitability.”
This MOU will be followed by signing of a detailed service agreement for an initial period of three years, similar to the previous processing and packaging agreements concluded between Ruchi Soya and Patanjali Ayurved earlier this year.
Satendra Aggarwal, COO, Ruchi Soya Industries Limited “The significance of this agreement can be ascertained from the fact that Patanjali is eyeing sales of Rs. 20,000 cr by 2020 from its edible oils range of which large packs will constitute a substantial portion."
He also added,“The edible oil brands of Patanjali and Ruchi Soya (like Mahaksoh and Sunrich) operate in premium and popular segments respectively and hence are non-competitive."
Recently on September 06, Ruchi Soya stated its plan to consider internal restructuring options including creating subsidiaries for individual businesses within the company, and separating businesses into individual entities.
