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Patanjali to invest Rs 1k cr for 1 R&D, 6 processing units

Times of India:  April 27, 2016

New Delhi: Patanjali Ayurved, the FMCG company promoted by yoga baron Ramdev, is aiming to double its revenues to Rs 10,000 crore by March next year and invest around Rs 1,000 crore to set up six processing units and an R&D centre.

"We will invest Rs 150 crore in the R&D centre and Rs 500 crore on cow protection and research centre," Ramdev said. "At the same time, we will build processing centres in drought-hit regions such as Bundelkhand, Vidarbha and Marathwada for crops such as amla, aloe vera, tomatoes and tulsi, which need minimal water."

Patanjali is working to boost its revenues from its ecommerce arm and plans to enter sectors such as dairy , animal feed and yoga apparel. Products such as paneer, milk, cheese and buttermilk are in the pipeline.

"Around 5 crore people are searching for Patanjali on the internet," said Ramdev."We see huge potential in that. Apart from online push, we will also focus on traditional retail and open many Patanjali mega-stores across the country ."

In 2015-16, the Haridwarbased company raked in revenues of Rs 5,000 crore, up from around Rs 400 crore in 2011-12 and Rs 2,000 crore in 2014-15. Products such as ghee (Rs 700 crore) and toothpaste (Rs 300 crore) emerged as bestsellers in its FMCG portfolio which has around 300 products.

In contrast, HUL and Colgate had revenues of around Rs 30,170 crore and Rs 4,211 crore in 2014-15 respectively.

Acharya Balkrishna, MD of Patanjali Ayurved, said the company is exploring the possibility of exports of Patanjali products. It has created four verticals -homecare, natural cosmetics and healthcare, natural food and beverages and health drinks -to help expand its distribution network. "We are also digitizing around 1,200 Patanjali Chikitsalayas that will now be interconnected online," Balkrishna, who owns around 94% stake in the company , said. Ramdev claimed Patanjali Ayurved is the highest tax payer in Uttarakhand and pays around hundreds of crore of rupees in taxes.

"Many MNCs are trying to hurt Patanjali's prospects with several strategies such as encouraging fake product testing," Ramdev said. "But at the same time, top-level executives from companies such as Unilever and P&G, who have patriotic feelings are joining us. All our products are about patriotism and purity ."

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.