Ruchi Soya Industries has made a foray into the nutraceuticals and wellness segment. Initially, the company will launch 10 products under the brand 'Patanjali' and 'Nutrela'. The company aims to have a range of products across various product categories in the next year.
Ruchi Soya Industries said in a statement, "To start with, the company is launching 10 products, including vitamin B12, iron complex, vitamin D, vitamin C and zinc complex, daily activities, daily energy, weight gain, and omega."
The entire product range offers 100 percent vegetarian nutrition. The company plans to use the joint branding of 'Patanjali' and 'Nutrela' for packaging, promotion, advertising, and marketing the range of the initial 10 products.
Ruchi Soya Industries has obtained a non-exclusive renewable licence to use the 'Patanjali' brand, for which Ruchi will pay Patanjali Ayurved Ltd (PAL) a royalty of 1 percent of the net manufactured volume.
The entire range of nutraceuticals and wellness products will be manufactured by PAL at the state-of-the-art plant located at Patanjali Food and Herbal Park, Haridwar, under a contract manufacturing arrangement. The company added that PAL has signed a non-compete arrangement for all nutraceutical products under agreed arrangements.
The products will be distributed across India in pharmacies, general stores, e-commerce platforms, health and wellness stores, and gyms, including Patanjali exclusive stores which the company has entered into a distributor agreement with PAL.
Ruchi Soya Industries said that its board has approved the execution of the breakfast cereals and noodles assignment agreement between PAL and the company for a consideration of Rs 3.50 crore. This will enable the company to make a foray into breakfast cereals and atta (wheat) noodles category.
The board also approved a distribution agreement between the company and PAL for the non-exclusive distribution of Ruchi Soya products, which include edible oil, biscuits, breakfast cereals, noodles, and nutraceutical products.