India: Patanjali Ayurved, who is the second-highest bidder for the asset, has written to resolution professional Shailendra Ajmera from EY and the lenders to Ruchi Soya that the company is still interested in the asset and is willing to match Adani’s offer if allowed to. This acquisition by Patanjali will augment the growth of the company.
This happened after Adani Wilmar, in a letter to the resolution professional and the lenders said that it is withdrawing its INR 5,474-crore offer for Ruchi Soya due to delays in closing the process. Adani Wilmar, which is a joint venture between infrastructure major Adani Group and Wilmar International, Singapore had been voted by the committee of creditors (CoC) as the winning bidder for India’s largest bankrupt edible oil maker in August. Ruchi Soya owes around INR 9,405 crore to lenders and INR 1,248 crore to operational creditors.
According to BlueWeave Consulting, Ruchi Soya has around 3.72 million tonnes oil seed extraction capacity in India. The company has around 24 plants of milling, crushing, refining, and packaging edible oils. They are one of the largest exporters of value-added soy products. It owns popular brands such as Mahakosh, Nutrela, Sunrich, Ruchi Gold and Ruchi Star. There has been a surging consumption of edible oils, majorly in the growing economies owing to rising population along with increasing disposable income. Since people are becoming more concern about their health manufacturers are increasingly using advanced techniques to produce healthier oil that will be good for the health. Patanjali is an ayurvedic company which produces everything healthy and good for the body. Thus, if Patanjali acquires Rucha Soya, they will be able to use advanced techniques and produce healthier oils which will augment the growth of the company as well as the edible oils market.
According to the upcoming report by BlueWeave Consulting on “Global Edible Oils Market, By Type, By End-User, By Region- Industry Analysis, Size, Share, Growth, Trends & forecast by 2018-2025”, The market is anticipated to witness significant growth during the forecast period. The market is growing extensively owing to the increasing popularity of unrefined, unprocessed, healthy, and organic oil. In the approaching years, vegetable oils with low cholesterol, fat, and calories are likely to gain high response due to growing health awareness among people across the world. In addition, major improvement in retail network, increasing crop yields, oil production, and growing economies are some of the prominent factors supporting the growth of the global edible oil market. Moreover, the growing popularity of canola oil, trans-fat-free soybean oil, and emerging preference for olive oil will drive the global market for edible oil.