Ruchi Soya Hits Capital Market; We Want To Surpass Hindustan Unilever, Says Ramdev

Ramdev-led Patanjali Ayurved’s Ruchi Soya on Thursday hit the capital market to raise Rs 4,300 crore through its FPO as it aims to become a debt-free firm

Ramdev has said that the proceeds of the Ruchi Soya FPO would be utilised to retire the term loan of Rs 3,300 crore. Image: Getty

New Delhi: Ramdev-led Patanjali Ayurved’s Ruchi Soya on Thursday hit the capital market to raise Rs 4,300 crore through its follow-on public offer (FPO) as it aims to become a debt-free firm.

The issue closes on March 28. The price band has been fixed at Rs 615 to Rs 650 per share.

In an exclusive interview to Piyush Pandey on Thursday, Ramdev ventilated his views about Patanjali, his vision on Ruchi Soya. Here are the excerpts:

During the interview, he stressed on the point saying that his basic identity is yoga guru, not a businessman.

When asked where he wants to see his enterprise in the future, Ramdev categorically mentioned that he wants Patanjali to become world's biggest food company in the near future. “We want to surpass Hindustan Unilever (HUL), one of the largest FMCG companies, in India. We don’t want to compete with anyone. We want to compete with ourselves. Self-competition, self-inspiration, self-motivation is the key to our success,” he said.

While sharing his vision, the yoga guru said that he is certain that very shortly Patanjali will achieve the target of becoming India’s No.1 food company.

Ramdev said the company has launched its FPO despite volatility in the stock market because of the war between Russia and Ukraine. He said the company has already raised Rs 1,290 crore from anchor investors on Wednesday and expressed confidence that its FPO would be a huge success as people have faith in its products and brand.

The proceeds of the FPO would be utilised to retire the term loan of Rs 3,300 crore, he said.

“Ruchi Soya will become debt-free,” he asserted.

Asked why the price band has been kept lower than the current market prices, Ramdev said this has been done to give a good return to investors.

“We have turnaround the Ruchi Soya after acquiring it through insolvency proceedings,” Ramdev said.

He said the company became bankrupt because of the mistakes committed by the previous management. “We are running the company with transparency, accountability, and corporate governance," he said.

Ramdev said there are four components in Ruchi Soya. “All food items will come under the Ruchi Soya brand, while the non-food and ayurvedic products will be listed under the Patanjali brand. We can assure one thing, beyond all market perception, people want to see performance, and we want to stand out,” he said.

During his interview, Ramdev promised that Ruchi Soya, which is currently the second-biggest edible oils brand in India, will become the number one brand in the country within 3-5 years.  

When asked how he strikes a balance between yoga and business, he said, “When I do yoga, I do it 100 per cent. In the same way, when I am engaging myself in business, I am concentrating 100 per cent. Otherwise nothing could be done perfectly.”

Ramdev mentioned that there is no partnership in the company. “We, in Patanjali, are working with oneness, co-existence, harmony, and brotherhood. I believe everyone associated with Patanjali, in whatever way, are all our partners.”

Regarding Acharya Balkrishna, who is the chairman of the Patanjali Ayurved, Ramdev said that he met him in the gurukul 35 years ago. “We only share one dream, i.e. work. There is no partnership between us.”

Currently, Patanjali Group owns about 98.9 per cent stake in Ruchi Soya. Public shareholders own about 1.1 per cent stake.

After the FPO, Patanjali Group’s holding in Ruchi Soya will come down to about 81 per cent, and the public will hold about 19 per cent.