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 agreement, Ruchi Soya has exclusive distribution rights for the existing as well as the future range of Patanjali edible oils in large packs. The MOU will be followed by the 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.
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 ensure that its brands are available in more than 10 lakh outlets across 4000 towns in general trade.