India’s leading agri and FMCG company Ruchi Soya Industries Ltd has signed an agreement with Baba Ramdev-promoted Patanjali Ayurved Ltd for physical refining and packaging of edible oils.
The agreement is valid initially for three years. As per the agreement, Ruchi Soya Industries would process the crude oil provided by Patanjali Ayurved and pack the refined oil as per their specifications.
The share price of Ruchi Soya Industries hit the upper circuit on Monday before closing with an overall gain of 16.34% at Rs 29.90 apiece after a minor profit booking. “We have been looking at opportunities to explore optimal use of unutilised capacities for crushing, refining and packaging edible oils with various parties. We will be able to utilise idle capacities, and work with Patanjali to enable them to supply quality refined oils to the Indian market,” said Dinesh Shahra, Managing Director.
Ruchi Soya currently has the largest edible oil refining capacity inIndia of 3.3 million tonnes per annum across 13 facilities.
“The agreements for physical refining and packing would cover processing and packing soya, sunflower and mustard oils at our plant in Baran, Rajasthan. In the near future, the processing and packing will be extended to other locations and will include more various varieties of edible oils as well. The tie-up will help Ruchi Soya to improve capacity utilisation and enhance productivity, efficiency, and profitability,” said Satendra Aggarwal, Chief Operating Officer, Ruchi Soya Industries.
Ruchi Soya is a leading producer of branded edible oils in India. Some of its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold. EndsSource: Business-Standard