Patanjali Ayurved has significantly narrowed the gap with FMCG majors such as Dabur, Marico and Godrej Consumer as the Baba Ramdev-led firm has more than doubled its sales in the past year to nearly Rs 5,000 crore.
The company plans to raise funds through bank term loans or corporate bonds as it aims to double its production capacity to 2,000 tonnes a day by the end of 2016-17.
Meanwhile, according to a report in The Economic Times, ICICI Bank and HDFC Bank have offered to provide loans to yoga guru Baba Ramdev’s rapidly expanding Patanjali Ayurved, which is looking to raise about Rs 1,000 crore this fiscal, at a time when lenders are shying away from most corporate borrowers.
The two private sector banks recently approached the Haridwarbased consumer goods maker to offer corporate loans. Up until now, the company has recieved credit facility from public sector banks – namely State Bank of India and Punjab National Bank.
According to PTI, Baba Ramdev said on the source of funding: “Banks have already sanctioned Rs 500 crore as working capital loan and they are ready to grant more funds for further expansions.”
The Haridwar-based firm has also decided to set up manufacturing plants in South India and is looking to become a partner in a mega food park currently being developed in southern cities. It is considering manufacturing units in Andhra Pradesh, Karnataka, Maharashtra and Madhya Pradesh to better cater to South India’s needs.
Patanjali, which has 15,000 stores across the country, plans to add more products in segments where it already has presence such as dairy, instant foods, baby care, natural cosmetics and health supplements.