Ramdev's Patanjali comes to debt-ridden Ruchi Soya's rescue

Baba Ramdev and Patanjali have come to the rescue of debt ridden Ruchi Soya. Sources say Patanjali will start branding and marketing the edible oil produced by Ruchi Soya across its 13 facilities, which will ensure guaranteed sales to Ruchi Soya as well as cut its distribution and marketing costs.

Ruchi Soya declined to give a comment to ET Now. The company's stock today was locked in an upper circuit, and was also the top gainer in the Nifty500 index.

Sources say this arrangement comes as a massive relief to one of the country's largest edible oil manufacturers with brands like Ruchi Gold and Mahakosh. Ruchi Soya owes almost Rs 10,000 cr to banks, is contesting winding up proceedings initiated by IDFC Bank in Bmbay Hight Court, and is yet to secure all 22 lenders approval to enter a joint venture with Adani Wilmar.

Yoga guru and Patanjali's co-founder has been on record about the company''s intention of starting an edible oil vertical with a sales target of Rs 20,000 cr in three years.