Patanjali Foods Limited (PFL) announced the execution of two agreements with related party Patanjali Ayurved Limited (PAL) to acquire significant assets. PFL will purchase the leasehold rights over a 40,001.6 sq meter land parcel, including partially constructed buildings, for INR 673.90 Crore. Additionally, PFL is acquiring the biscuit manufacturing plant and machinery installed on the plot for INR 76.10 Crore, totaling an investment of over INR 750 Crore. The move aims to augment PFL’s biscuit manufacturing capabilities.
Strategic Acquisition of Manufacturing Assets
Patanjali Foods Limited (PFL) has entered into two crucial agreements with its Promoter Group Company, M/s. Patanjali Ayurved Limited (‘PAL’), effective March 14, 2026. This transaction is strategically aimed at augmenting PFL’s existing biscuit manufacturing capabilities, enhancing operational efficiencies, and supporting future growth in line with the company’s long-term strategy.
Details of Leasehold Rights Transfer
Under the “Agreement To Transfer Leasehold Rights,” PFL is acquiring the leasehold rights for a substantial portion of land allotted to PAL by YEIDA. Key details of this transfer include:
- Asset Acquired: Leasehold rights over a 4,00,016 sq meters land parcel, which includes a partially constructed building structure spanning 69,900 sq meters built-up area.
- Total Consideration: A lump sum purchase price of INR 673.90 Crore. This is allocated as INR 605.90 Crore for the Said Plot and INR 68.00 Crore for the Building and associated civil structures.
- Relationship: PAL is a Promoter Group Company of PFL, and the transaction has been conducted on an arm’s length basis.
Acquisition of Plant and Machinery
Concurrently, PFL entered into a “Plant and Machinery Transfer Agreement” to purchase the biscuit manufacturing equipment installed at the same location.
- Consideration: The purchase price for the plant and machinery is INR 76.10 Crore.
- Shareholding: PAL holds a 29.61% shareholding in PFL.
The Audit Committee and Board of Directors of PFL accorded their approval for both transactions on March 14, 2026. The transfer of leasehold rights remains subject to necessary approvals from YEIDA and other relevant authorities.
Source: BSE
