Indian agribusiness Ruchi Soya Industries has entered into a memorandum of understanding (MoU) with edible oil producer Patanjali Ayurved to exclusively sell and distribute the full range of Patanjali’s oils in large packs.
Under the agreement, Ruchi would have exclusive rights to both the current and future ranges of Patanjali edible oils, the Hindu Business Line wrote on 28 September.
The deal follows a refining and packaging deal between the two companies, which was signed in February and gave Ruchi the right to process and pack Patanjali crude edible oils as per its specifications.
Ruchi Soya Industries managing director Dinesh Shahra called the earlier deal a win-win situation for both companies in an interview with India’s Economic Times on 13 February.
“We have been looking at opportunities to explore optimal use of capacities for crushing, refining and packaging edible oils with various parties. We will be able to utilise idle capacities and work with Patanjali to enable them to supply quality refined oils to the Indian market,” he said.
The February deal covered the processing and packing of soya, sunflower and mustard oils at Ruchi’s plant in Baran, Rajasthan state.
Ruchi has the largest edible oil refining capacity in India, with 3.3M tonnes spread across 13 facilities, according to the Economic Times. Its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.