Shares of Ruchi Soya Industries were locked in a 5 percent upper circuit at Rs 1,137.50 per share on the BSE after the company said that it has entered the nutraceuticals segment with Patanjali Ayurved.
The company announced that it has made a foray into the nutraceuticals and wellness segment and initially 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 one year, it said.
It added that it 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 company added that PAL has signed a non-compete arrangement for all nutraceutical products under agreed arrangements.
The products will be manufactured by Patanjali at its Patanjali Food and Herbal Park, Haridwar, under a contract manufacturing arrangement.
"To start with, the company is launching 10 products, including vitamin B12, iron complex, vitamin D, vitamin C and zinc complex, daily active, daily energy, weight gain, and omega...," Ruchi Soya Industries said in a statement.
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, it said.
—With inputs from PTI
(Edited by: By Ajay Vaishnav)