PFL claims its acquisition of Patanjali Ayurved Limited’s HPC business to boost its FMCG portfolio
Tuesday, 02 July 2024 | PNS | DEHRADUN
The board of Patanjali Foods Limited (PFL) has approved the proposal of Patanjali Ayurved Limited (PAL) to acquire the latter’s Home and Personal Care (HPC) business which the PFL officials claimed would accelerate its transition into a leading Fast-Moving Consumer Goods (FMCG) company. They further said that the HPC business of PAL currently has strong brand equity in India’s FMCG space and enjoys a loyal consumer base across the country. It presently caters to four key segments-dental care, skin care, home care and hair care. They also stated that this strategic initiative for acquisition of HPC business would strengthen the company’s existing FMCG product portfolio with an array of marquee brands and also contribute to growth in terms of revenue.
As per the acquisition proposal, PFL prepares to acquire the entire HPC business of PAL, including the assets and liabilities attributable to the business, relevant employees, distribution network, contracts, licenses, permits, consents and approvals integral to this operation. The transfer of the HPC business has been mutually negotiated between PFL and PAL for a lump sum Rs 1100 crore subject to customary closing date adjustments and other terms as set out in the business transfer agreement to be executed between PFL and PAL.
