Ruchi to handle all of Patanjali’s big-box edible oils

Under the terms of the deal, Ruchi will call on its distribution network across all regions of India, the companies said in a statement.

Ruchi will get exclusive distribution rights for all existing and future Patanjali edible oils. A detailed service agreement will apply for an initial period of three years, similar to a processing and packaging deal between the two companies that was signed in February.

Under that earlier arrangement, Ruchi has been able to process idle capacities of crude oil provided by Patanjali based on the Baba Ramdev-owned company’s specifications.

Ruchi chief operating officer Satendra Aggarwal said the Patanjali is hoping for its edible oil sales to reach US$3bn by 2020.

Ruchi stock rallied following the news, much to the relief of investors. Earlier this month Standard Chartered Bank filed an insolvency case against the agriculture-foods business over debt default.