After business acquisition, Ruchi Soya will become Patanjali Foods, with a nearly 8% share increase.

According to Ruchi Soya, subject to statutory and regulatory approvals, the company's board has resolved to change the name from "Ruchi Soya Industries Limited" to "Patanjali Foods Limited." Business Transfer Agreement ("BTA") with Patanjali Ayurved Limited ("PAL") to acquire the food retail business undertaking of PAL as a going concern on a slump sale basis subject to shareholder approval, according to the regulatory filing. The undertaking consists of manufacturing, packaging, labeling, and retail trading of specific food products as well as manufacturing plants located in Padartha, Haridwar, and News, Maharashtra.

The company announced in a filing that it will take over Patanjali Ayurved Limited's food retail operation. Ruchi Soya's shares increased 7.84% to Rs 1,168.70 in the afternoon session.

The company stated in an exchange filing that the transaction would involve the transfer of employees, assets (excluding Patanjali's brand, trademarks, designs, and copyrights), current assets (excluding debtors, vehicles, cash, and bank balance), contracts, licenses and permits, distribution network, and customers related to the Patanjali Ayurved Food Retail Business Undertaking.

Before listing its FPO, Patanjali Ayurved made clear that it intended to transfer all of its food-related operations to Ruchi Soya. In a previous conversation with Moneycontrol, the company's founder and yoga guru Baba Ramdev discussed ambitions to combine the food operations of two different companies and produce a dominant FMCG powerhouse.

We decided to move the whole food business to Ruchi Soya because we believe it will be challenging to make Ruchi Soya the leading FMCG firm in the food and FMCG industry based on its current offers. Our food portfolio sells based on brand trust and has very significant brand equity. We have well-known goods like chyawanprash, medicinal drinks, and so on," Ramdev had previously told Moneycontrol.

One of the biggest branded oil packaged food companies is Ruchi Soya. Because Ruchi Gold is India's best-selling palm oil brand and Nutrela is one of the country's first and biggest soy food manufacturers, it holds a dominant position in the market.

With a strong portfolio of brands in different types of cooking oils under categories like palm, soybean, mustard, sunflower, cottonseed, etc., the company is recognized as one of the largest branded oil packaged food companies. Its brands include "Ruchi Gold," "Mahakosh," "Sunrich," "Ruchi Star," and "Ruchi Sunlight."

In 2019, Patanjali Ayurved purchased Ruchi Soya in an insolvency process for Rs 4,350 crore. At the request of Standard Chartered Bank and DBS Bank, the National Company Law Tribunal (NCLT) ordered the beginning of bankruptcy proceedings against Ruchi Soya in December 2017. Patanjali Ayurved owned a 39.37 percent stake in Ruchi Soya as of March 31. One of the Ruchi Soya's promoters and chairman, Acharya Balkrishna, owns 98.5% of Patanjali Ayurved's paid-up equity share capital.

To raise Rs 4,300 crore, the business issued a follow-on public offer (FPO) of Ruchi Soya earlier this year. The majority (80–85%) of the FPO's revenues will go toward paying off Ruchi Soya's debt.

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