In an interaction with DTNext, he talks about transforming the bankrupt entity into a sparkling brand. Last year onwards, the share price of Ruchi Soya has surged over 90 per cent following the takeover by Patanjali in 2019. The debt-ridden Ruchi Soya (worth Rs 12,000 crore) was bailed out from the National Company Law Tribunal, and it has managed to stay afloat since Ramdev-steered Patanjali infused capital to revive the brand. Interestingly, Patanjali has pumped Rs 1,150 crore via equity into Ruchi Soya, while raising the balance Rs 3,000-odd crore from banks, including SBI, which, along with other banks, had taken a massive haircut of over 50 pc in the case of Ruchi Soya, bought for Rs 4,350 cr.
The non-executive non-independent director of Ruchi Soya Industries Ramdev asserts “We have followed all the NCLT guidelines in Toto and have even paid the interest. Within two years, our effort is to repay the principal and become debt-free.” Sanjeev Kumar Asthana, CEO, Ruchi Soya, chips in to say “the turnaround is a case study in itself. Be it operations or marketing, our distribution network backed by efficient planning, has helped us to grow.”
Ramdev emphasises on the company’s track record and its huge customer base, as he seeks to point to the reputation built over years. “Unlike large corporates, our management is lean and cost effective. We incur less expenses and have adhered to corporate governance and professionalism. In 18 months, what we have achieved as Rs 16,000 cr plus turnover for Ruchi Soya out of our Rs 30,000 cr in FY21, is a proof and we stay focused on our vision to emerge as a food, nutraceutical, and wellness market leader,” he added.
In three years, Ramdev’s mission is to make Ruchi Soya and Patanjali brands global. “Prior to entering into the Patanjali Distribution Agreement on June 2, 2021, our firm got approximately 37%, 32% and 22% of its revenue from west, south and east regions respectively and balance from the north of our country as of March 31, 2021,” is Asthana’s response when asked about a revenue breakup. “All our factories have been operational with an intact supply chain. None of the workers have been affected and there has been zero production loss,” Ramdev says, as he notes 25,000-odd workers out of the 5-lakh strong workforce have been engaged in production activity during the pandemic. He is keen on making Patanjali an FMCG major by 2032, by when he also plans to aid India’s attempt to be self-reliant in edible oil.