Adani Wilmar declared highest bidder for Ruchi Soya under Swiss challenge method

Under the Swiss challenge system, which is now used by various government wings for tenders, lower bidders are given chance to match the highest bidder and if matched then the highest bidder is asked to improve its bid.

The Committee of Creditors (CoC) of Ruchi Soya earlier decided to conduct Swiss challenge method to maximise the asset value of Ruchi Soya.

Earlier, Patanjali had emerged as the highest bidder with an offer of around Rs 4,300 crore and has a commitment of Rs 1,800 crore capital infusion into the company, sources said, adding that Adani Wilmar, which sells edible oils under Fortune brand, has made a bid of around Rs 3,300 crore.

Apart from Patanjali and Adani, companies that had shown interest in acquiring Ruchi Soya were Emami Agrotech and Godrej Agrovet.

Patanjali Ayurveda already has a tie-up with the Indore-based Ruchi Soya for edible oil refining and packaging and it wants to further expand into cooking oil business.

Ruchi Soya, facing the insolvency proceedings, has a total debt of about Rs 12,000 crore. The company has many manufacturing plants and its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.

In December 2017, Ruchi Soya Industries Ltd entered into the Corporate Insolvency Resolution Process (CIRP) and Shailendra Ajmera was appointed as interim resolution Professional (IRP).

The appointment was made by the National Company Law Tribunal (NCLT) on the application of the creditors Standard Chartered Bank and DBS Bank Ltd, under the Insolvency and Bankruptcy Code.