Published
Dec 18, 2019
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NCLAT gives Patanjali more time for Ruchi Soya deal

Published
Dec 18, 2019

Ayurvedic fast moving consumer goods brand Patanjali has won more time to complete its acquisition of edible oil business Ruchi Soya, the National Company Law Appellate Tribunal ruled on Tuesday.

Patanjali Ayurved now has more time to implement its Ruchi Soya resolution plan following a second NCLAT extension - Patanjali Products- Facebook


Baba Ramdev’s business Patanjali Ayurved was given another extension, this time for one week until December 23, to complete its Ruchi Soya acquisition, as implementing the resolution plan has proven a timely process, the Press Trust of India reported. Patanjali had asked the NCLAT for more time to implement its Rs 4,350 crore ($653.9 million) resolution plan for the bankrupt Ruchi Soya.

Although Justice S J Mukhopadhaya ruled to give Patanjali more time, the appellate tribunal also stated that the Ruchi Soya’s lenders can approach it if Patanjali does not follow through and make scheduled payments on time. Patanjali’s representative at the NCLAT, A S Chandhiok, said that a one week extension will suffice for finalising the implementation plan.

Patanjali aims to use Ruchi Soya’s manufacturing facility to greatly expand its production capacities which it expects to drive growth. The business was first given permission to acquire Ruchi Soya by the National Company Law Tribunal in September this year after Ruchi Soya began insolvency proceedings in December 2017. 

Patanjali retails a wide range of Ayurvedic personal care products including cosmetics and hair products. The business experienced swift growth when it launched and disrupted India’s personal care market but growth has slowed in recent years.
 

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