RIDING RUCHI SOYA

CAN THE ACQUISITION HELP BABA RAMDEV AND ACHARYA BALKRISHNA GROW PATANJALI AYURVED INTO INDIA'S LARGEST FMCG COMPANY?

- AJITA SHASHIDHAR

Yoga guru-turned- corporate honcho Baba Ramdev can make you believe that setting up a business empire is child's play. Not only is his appetite to take risks extremely high, but his confidence to succeed against all odds is even more compelling. His company, Patanjali Ayurved, acquired the bankrupt Ruchi Soya through an NCLT (National Company Law Tribunal) process in 2019. And in the two years since, the company has turned profitable. When asked what he did differently to turn it around in such a short span, Ramdev laughs aloud and says, Ruchi Soya is Patanjali Ayurved's kulvadhu (bride). When a girl becomes a part of a renowned family, her brand equity automatically goes up. That's what has happened with Ruchi Soya, too.

Glib rhetoric aside, Ruchi Soya's turnaround story indeed sounds remarkable. Patanjali Ayurved bought out the company when it was staring at a debt of Rs 12,000 crore. In a short span of two years, the debt has reduced to Rs 3,300 crore. It also boasts net profit of Rs 680.77 crore and EBITDA of Rs 1,018.37 crore in FY21. Now, having transformed Ruchi Soya from a white elephant to a clear, deep grey, the 50-year-old swami wants to ride it to make Patanjali Ayurved India's largest FMCG company with international presence to boot — in at least 50 countries — within the next one year.