Patanjali Ayurved group firm Ruchi Soya Industries Ltd’s shareholders have approved the appointment of Yoga guru Swami Ram Dev, his younger brother Ram Bharat and close aide Acharya Balkrishna on the company’s board.
In a regulatory filing, Ruchi Soya, which sells soya products under Nutrela brand, said the shareholders have approved all resolutions at the annual general meeting with requisite majority.
Ruchi Soya had sought shareholders’ approval for the appointment of Ram Bharat, 41, as the managing director of the company as well as to re-designate Acharya Balkrishna as chairman of the company and appointment of Swami Ramdev, 49, as a director on the company board.
The board of directors, at its meeting held on August 19, appointed Ram Bharat as managing director of the company with effect from August 19, 2020 to December 17, 2022 and his designation was changed from whole-time director to managing director.
Subsequent to a consortium of Patanjali Ayurved Limited, Divya Yog Mandir Trust (through its business undertaking, Divya Pharmacy), Patanjali Parivahan Private Limited and Patanjali Gramudhyog acquiring Ruchi Soya in insolvency proceedings last year, the new management got right to appoint the board, the AGM notice had said.
Last year, Ramdev’s Patanjali Ayurved paid Rs 4,350 crore to take over Ruchi Soya. The acquisition helped Patanjali acquire edible oil plants as also soybean oil brands such as Mahakosh and Ruchi Gold.
In December 2017, the National Company Law Tribunal (NCLT) ordered the start of insolvency proceedings against Ruchi Soya to recover unpaid loans.
Out of the Rs 4,350 crore offered by Patanjali group, Rs 4,235 crore was used to pay creditors while Rs 115 crore was used for capital expenditure and working capital requirements of Ruchi Soya.
Patanjali won the bid to acquire Ruchi Soya after Adani Wilmar, which sells edible oil under the Fortune brand, withdrew from the race citing significant delays in a resolution process that led to the deterioration of assets.