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Mumbai: A joint venture between the Adani group and Singaporean agri firm Wilmar is competing with Baba Ramdev-led Patanjali Group to buy out Ruchi Soya in a Rs 5,000-crore deal, with the race to control the indebted edible oil maker entering the final lap.
Both companies have been called before the insolvency board on Tuesday to present the resolution proposal for the future of the bankrupt company, multiple sources close to the process told ET.
Ruchi Soya has been dragged into the NCLT process by its creditors after the company defaulted on Rs 12,000 crore worth of loans.
The Indore, Madhya Pradesh-based firm is India’s largest edible oil maker and the bidding process for the asset has seen participation from heavyweights such as Godrej Agrovet, ITC, Emami and a bunch of private equity funds.
“Adani-Wilmar and Patanjali have been called to make a presentation about the rescue plans.
We don’t think the Ruchi Soya process will face any hurdles and should conclude smoothly,” said one of the sources cited above.
Both Patanjali and Adani did not comment: Ruchi Soya did not respond to an e-mail seeking comments.
Set up in 1986, Ruchi Soya took the leadership position in making edible oils.
It also sells vanaspati, bakery fats, and soya food.
The company owes around Rs 12,000 crore to a consortium of 16 lenders, including State bank of India, IDBI, Standard Chartered Bank and DBS and was taken to the bankruptcy court in 2017 as part of the 28 accounts referred by the Reserve Bank of India.
The company reported a total income of Rs 3,024.84 crore in the December quarter, down 40 per cent compared to a year ago and made a net loss of Rs 1,956.60 crore as against a net loss of Rs 216 crore posted during the same period in 2016.
Ruchi Soya brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.
Patanjali Ayurved, which has emerged as one of the most aggressive consumer brands, already has a tie up with Ruchi Soya for edible oil refining and packaging.
Patanjali, controlled by Baba Ramdev, is the fastest growing FMCG firm with a network of over 4,000 distributors, 10,000 stores and 100 Patanjali mega marts across the country.
Adani Wilmar, which sells cooking oils under the Fortune brand, has formed a joint venture with Ruchi Soya in 2016 for edible oils.
India’s consumer products market grew 13.5% in FY18, with eight of 10 leading companies posting doubledigit value growth, indicating a revival in consumption after more than five years of single-digit expansion, according to a report by Nielsen in March.
