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Ruchi Soya to be Renamed Patanjali Foods Company Board Approves; Stock Surges

Introduction

In a significant move, the board of Ruchi Soya has approved the renaming of the company to Patanjali Foods. This decision comes after the acquisition of Ruchi Soya by Patanjali Ayurveda Limited in 2019. The approval of the name change was announced on Monday, 5th April 2023. The announcement resulted in a surge in the company’s stock prices!

Background

Ruchi Soya Industries Limited was one of India’s leading edible oil & soybean producers until it ran into financial difficulties. In December 2019, Patanjali Ayurveda Limited, a consumer goods company founded by Baba Ramdev & Acharya Balakrishnan, acquired Ruchi Soya for Rs 4,350 crores (approximately USD 590 million) under the insolvency resolution process. The acquisition was aimed at expanding Patanjali’s presence in the edible oil and soybean segments.

Approval of the Name Change

The board of directors of Ruchi Soya has approved the proposal to change the company’s name to Patanjali Foods Limited. This change is aimed at reflecting the ownership of the company by Patanjali Ayurveda & consolidating the branding of Patanjali’s food products. The name change is also expected to provide a boost to the company’s market value & attract more investors.

Stock Price Surge

The announcement of the approval of the name change resulted in a surge in the company’s stock prices. The stock prices of Ruchi Soya Industries Limited, which were trading at Rs 1,200 on Friday, 2nd April 2023, rose to Rs 1,500 on Monday, 5th April 2023, after the announcement. The surge in stock prices is a clear indication of investors’ confidence in Patanjali Ayurveda & its vision for Ruchi Soya!

Impact of the Name Change

The name change is expected to have a positive impact on the company’s market value & investor confidence. The consolidation of Patanjali’s branding of food products will enable the company to leverage its brand equity & expand its customer base. The name change is also expected to provide a boost to Patanjali Ayurveda’s overall business & help it achieve its goal of becoming a leading player in the FMCG segment.

Future Plans

Patanjali Ayurveda has big plans for Ruchi Soya, The company has announced that it will be investing Rs 2,500 crores (approximately USD 340 million) to expand Ruchi Soya’s production capacity & introduce new products. The investment will also be used to strengthen the company’s supply chain & distribution network. Patanjali Ayurveda aims to become a leading player in the edible oil & soybean segments, & the acquisition of Ruchi Soya & the name change are crucial steps towards achieving this goal!

Conclusion

The approval of the name change of Ruchi Soya to Patanjali Foods is a significant move that reflects Patanjali Ayurveda’s vision for the company. The name change is expected to provide a boost to the company’s market value & investor confidence, & consolidate Patanjali’s branding of food products, with the planned investment of Rs 2,500 crores, Patanjali Ayurveda aims to become a leading player in the edible oil & soybean segments, & the acquisition of Ruchi Soya & the name change are crucial steps towards achieving this goal.

FAQs

What is Ruchi Soya?

Ruchi Soya Industries Limited is an Indian company that produces edible oils and soybean products.When was Ruchi Soya acquired by Patanjali Ayurveda?

Ruchi Soya was acquired by Patanjali Ayurveda in December 2019.

What is the reason behind the name change?

The name change is aimed at reflecting the ownership of the company by Patanjali Ayurveda and consolidating the branding of Patanjali’s food products.

What is the impact of the name change on the company’s stock prices?

The announcement of the approval of the name change resulted in a surge in the company’s stock prices, indicating investors’ confidence in Patanjali Ayurveda and its vision for Ruchi Soya.

What are Patanjali Ayurveda’s future plans for Ruchi Soya?

Patanjali Ayurveda plans to invest Rs 2,500 crores (approximately USD 340 million) to expand Ruchi Soya’s production capacity, introduce new products, and strengthen the company’s supply chain and distribution network.

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