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Patanjali to invest Rs 1,150 cr in FY17, eyes double revenue

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Yoga Guru-turned-entrepreneur, Baba Ramdev’s FMCG venture, Patanjali Ayurved, will invest over Rs 1,150 crore in the current fiscal to set up six processing units and one R&D center, even as it targets a Rs 10,000 crore turnover this year.
“We will invest Rs 1,000 crore to set up 5-6 processing units in various parts of the country. Apart from this, we will invest Rs 150 crore in research and development (R&D). We are looking at doubling our turnover to Rs 10,000 crore in the current fiscal,” Ramdev told PTI.
These units will come up in Assam, Madhya Pradesh, Uttar Pradesh, Maharashtra, Haryana and Uttar Pradesh.
“We are looking at setting up units in drought-hit areas such as Vidharbh in Maharashtra and Bundelkhand region in Uttar Pradesh and Madhya Pradesh. At least four of these units will become operational by the end of this fiscal,” Patanjali Ayurved Managing Director Acharaya Balkrishnan was quoted by PTI as saying.
Patanjali Ayurved, which reported a turnover of Rs 5,000 crore in the last fiscal, is also looking at entering the highly competitive dairy segment this year.
“To reach our growth target, we will venture into new categories such as dairy, animal feed and khadi garments for yoga. We will enter dairy segment this year with the launch of milk, cheese, butter milk and paneer,” Ramdev told PTI.
“Banks are more than willing to give loans to us. We have no shortage of funds to expand. We are a debt-free company,” he told PTI on source of funds
The company is also working towards increasing its exports and enhance online presence and is planning to open outlets at railway stations and airports soon.
“We are getting five crore internet searches every month. Our online sales will increase further as we expand,” Ramdev was further quoted by PTI as saying.
The homegrown FMCG giant has also decided to spend Rs 500 crore on both the protection of cows and for setting up world class universities for Vaidik education.
Located in the industrial town of Haridwar, Patanjali Ayurved is known for manufacturing mineral and herbal products. The four main verticals of the FMCG firm are Home Care, Natural Cosmetics and Health Care, Natural Food and Beverages and Health Drink.
The company manufactures 444 products including 45 types of cosmetic products and 30 types of food products. According to Patanjali, all the products manufactured by Patanjali are made from Ayurveda and natural components. Patanjali products sell like hot cakes since they are cheaper as compared to their MNC alternatives in the market.
Retail experts say that this lower costing of products has put Patanjali Ayurved ahead of other FMCG MNCs, including Oral B, Marico and Dabur. In fact, Oral B has even been edged out of the toothpaste market because of Patanjali Dant Kanti.
According to CLSA, Patanjali is the fastest growing fast-moving consumer company in India. It is valued at Rs 13, 000 crore (US$1.9 billion) and is aiming to reach revenues of Rs 5,000 crore (US$740 million) for the fiscal 2015–16.
The annual turnover of the company for the year 2014-15 increased to ₹2500 crore (US$370 million) as compared to previous turnovers of ₹1200 crore US$180 million) (2013–14), ₹850 crore US$130 million) (2012-13) and ₹450 crore (US$67 million) (2011–12).
Kishore Biyani’s Future Group has tied up with Patanjali and sells about ₹30 crore (US$4.5 million) worth of the firm’s products every month. Apart from this, Patanjali products are also available for direct sale at Reliance stores, Hypercity and Star Bazaar.
Patanjali Ayurved has a network of over 4,000 distributors, 10,000 stores and 100 Patanjali mega marts pan India.

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