Home Retail Patanjali raises Rs 320 cr, may overtake FMCG biggies

Patanjali raises Rs 320 cr, may overtake FMCG biggies

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Popular all over the country for its medicines, food, personal care and groceries, Baba Ramdev’s Pantanjali Ayurved Ltd (PAL) is all set to raise a debt of Rs 320 crore. This money will be used for research, development, expansion and the launch of new products.

Pittie Group's distribution strategy enabled Patanjali to disrupt FMCG space
The Pittie Group is a conglomerate that has made its mark across diverse industries and sectors such as real estate, FMCG distribution, quick service restaurants and e-commerce

Functioning from Haridwar (Uttarakhand), PAL has three units which are tirelessly working towards manufacturing health care and domestic products; chemical free and natural. It has become a reliable brand for food items, specially with the newly launched noodles in its list.

The company has narrowed its gap with consumer product companies including Dabur, Marico and Godrej Consumer as the Baba Ramdev-led firm more than doubled its sales in the past ten months.

The Haridwar-based company has posted sales of Rs 3,267 crore in the ten months to January 2016, a 106 per cent jump compared to Rs 1,587 crore a year ago, according to rating agency Brickwork, which said it sourced provisional data from PAL.

“PAL has expanded its basket of products tremendously over the last year. Sustaining this with profitable growth requires continuous R&D, enlargement of contract manufacturing and quality control,” the agency said in a report.

The company’s turnover grew 69 per cent to Rs 2,007 crore during 2014-15, compared to Rs 1,187 crore in the previous year. Profit after tax nearly doubled to Rs 309 crore during the year, from Rs 155 crore in 2013-14.