RUCHI SOYA AND PATANJALI SIGN EXCLUSIVE DISTRIBUTION PARTNERSHIP

RUCHI SOYA TO MANUFACTURE, SELL AND DISTRIBUTE ENTIRE RANGE OF PATANJALI EDIBLE OILS IN LARGE PACKS ACROSS INDIA

September 28, 2017, Mumbai: Ruchi Soya Industries Ltd., India’s leading Agri and Food FMCG company announced the signing of an MOU with Yoga Guru Baba Ramdev ji promoted Patanjali Ayurved Ltd. for an exclusive sales and distribution arrangement for the entire range of Patanjali edible oils in large packs. Under the terms of the MOU, Ruchi Soya would use its own extensive distribution network to sell the complete range of Patanjali edible oils in large packs across all regions of India.

Under the agreement, Ruchi Soya has exclusive distribution rights for the existing as well as future range of Patanjali edible oils in large packs. The MOU will be followed by signing of a detailed service agreement for an initial period of three years, similar to the previous processing and packaging agreements concluded between Ruchi Soya and Patanjali Ayurved earlier this year.

Commenting on the exclusive arrangement, Mr. Dinesh Shahra, Managing Director & CEO, Ruchi Soya Industries Ltd. said, “We welcome this expansion of our relationship with Patanjali Ayurved. The MOU for exclusive distribution of large packs with Patanjali Ayurved is testimony to the intrinsic strength of our distribution network and sucesss of the manufacturing and packaging arrangement between the organisations. Not only will Ruchi Soya’s widespread distribution network ensure availability and sales of  Patanjali’s large packs range; this agreement will further lead to better utilisation of Ruchi’s manufacturing capacity and significantly contribute to cost-efficient operations and augment profitability.”

Mr. Satendra Aggarwal, COO, Ruchi Soya Industries Ltd. said, “The significance of this agreement can be ascertained from the fact that Patanjali is eyeing sales of Rs. 20,000 cr by 2020 from its edible oils range of which large packs will constitute a substantial portion. For Ruchi Soya, this exclusive agreement will not only help manage optimum plant capacities but will also enhance profitability; boost productivity and efficiencies of our sales and distribution system across the country due to enhanced volume throughput. He also added, “The edible oil brands of Patanjali and Ruchi Soya (like Mahaksoh and Sunrich) operate in premium and popular segments respectively and hence are non-competitive.”

Ruchi Soya’s Sales and Distribution system ensures that its brands are available in more than 10 lakh outlets across 4000 towns in general trade; in addition to its extensive coverage of modern trade outlets, institutions and the Horeca (Hotel/Restaurant/Catering) segment.

About RUCHI SOYA INDUSTRIES LIMITED

Ruchi Soya is India’s leading Agri and Food FMCG company with a turnover of USD 3 billion. The company enjoys leadership position in soy foods and cooking oil segments of the country. Ruchi Soya’s leading brands are Nutrela, Mahakosh, Sunrich, Ruchi Gold and Ruchi Star. An integrated player from farm to fork; the company is also among the pioneers of oil palm plantations in India. Ruchi Soya is one of the highest exporters of value added soybean products like soy meal, textured soy protein and soy lecithin. The company has also diversified into renewable energy and is committed to environmental protection as part of its business strategy which reinforces its mission of becoming a truly sustainable company.