Patanjali Foods: CCI approves purchase of personal care business of Patanjali Ayurveda

The Competition Commission of India has approved the proposal by Patanjali Foods to purchase the home and personal care business of Patanjali Ayurveda. This deal is worth Rs 1100 crore. The Competition Commission said in a release that the proposal involves the acquisition of Home and Personal Care (HPC) Business Division (Non-Food) of Patanjali Ayurveda Limited (PAL) by Patanjali Foods Limited. Patanjali Foods’ stock closed with a gain of more than 3 percent on BSE in Tuesday’s trading. At present the market value of the company is more than Rs 60 thousand crores.

Patanjali Ayurveda is a promoter of Patanjali Foods which was acquired under the insolvency process. The company’s income in the last financial year was Rs 31961 crore. In July this year, Patanjali Foods had announced that as part of its efforts to become a big FMCG company, the company will buy the home and personal care business of Patanjali Ayurved for Rs 1100 crore. Patanjali Ayurveda is involved in manufacturing, trading and packaging of Ayurvedic medicines, while the company’s home and personal care business includes products related to hair care, skincare, dental care and home care. Patanjali Foods is associated with edible oil.

In Tuesday’s trading, the stock of Patanjali Foods closed at the level of 1689 with a gain of 3.61 percent. A year ago the stock was below the level of Rs 1250, that is, during this period the stock has seen an increase of more than 35 percent. The stock’s highest level of the year was 2030. The lowest level of the year has been 1170. The stock had touched its highest level of the year only last month.