Published: Sat, May 06, 2017
Business | By Pat Ferguson

Patanjali to invest Rs. 5000 cr in setting up new plants

Patanjali to invest Rs. 5000 cr in setting up new plants

Growing at a rapid pace the Patanjali brand promoted by Baba Ramdev has offered good competition to other brands both local and worldwide, and according to Ramdev himself, Patanjali will become the largest brand in India within 1-2 years.

Patanjali's desi (Indian) versus foreign products pitch has seen the company capturing sizeable market share.

Talking about its distribution network, the yoga practitioner said, "We will create more entrepreneurs".

As Patanjali is eyeing to double its turnover, it is obvious that the company would spend more on advertising and expand its business in terms of product lines. It has the capacity to make products worth 300 billion rupees and plans to double that next year, he said.

The company is also planning to double its distributors from 6,000 to 12,000 to achieve the targets of Rs.21,000 crore revenue and is set to become the biggest home gown FMCG company in the next couple of years.

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A study by Assocham-TechSci Research said Patanjali Ayurveda has turned out to be the most disruptive force in India's fast moving consumer goods (FMCG) market. Patanjali Ayurved also intends to launch an apparel business and a school for the children of slain Indian soldiers, he said.

The group has a yearly turnover Rs 10,561 crore, out of which Ayurveda comprises Rs 9,346 crore, Divya Pharmacy Rs 870 crore, and Patanjali Gramodyog Rs 345 crore. Its personal care brand Keshkanti had clocked sales of Rs 825 crore and herbal soap Rs 574 crore.

Meanwhile, Patanjali is working on a model to sell its products through e-commerce as well. The Yoga Guru also said that he is an "unpaid ambassador" at Patanjali and that his childhood friend Acharya Balkrishna holds 97 percent of the company's shares. A jump from Rs 5000 crore revenues to Rs 10,216 crore in a year is no small feat, especially in the cut-throat FMCG sector. "Our kacchi ghani mustard oil is around Rs522 crore and would grow up to Rs1,000 crore", he added.

Denying allegations of outsourcing manufacturing, Baba Ramdev said 95 per cent Patanjali products are manufactured in-house.

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