Patanjali’s turnover growth at 150%, Ramdev targets Rs 10000 crore revenue
The turnover of Patanjali Ayurvedic Limited of Baba Ramdev grew 150% to more than Rs 5,000 crore in 2015-16 from about Rs 2,000 crore in the previous year, and the Baba predicts the growth of the brand would hurt the market share of existing FMCG majors.business Updated: Apr 27, 2016 18:06 IST
The turnover of Patanjali Ayurvedic Limited of Baba Ramdev grew 150% to more than Rs 5000 crore in 2015-16 from about Rs 2000 crore in the previous year, and the Baba predicts the growth of the brand would hurt the market share of existing FMCG majors.
“Nestle ka panchi udne wala hai, Colgate ka gate bandh hone wala hai, aur Pantene ka pant kharab hone wala hai (The Nestle bird will fly away, Colgates gates will shut and Pantene will lose its trousers)” Ramdev said at a press conference here on Tuesday.
To give a comparison, Nestle India’s turnover was Rs 8,175 crore, HUL had Rs 30,805 crore and Colgate-Palmolive announced Rs 3,981 crore, at the end of 2015. Patanjali targets the turn over to double to Rs 10,000 crore in 2016-17.
Ramdev claimed many “patriotic” professional management talents from many multi national companies are joining the Patanjali.
Acharya Balkrishna, MD, Patanjali Ayurvedic Limited, said the company now operates at 8-10% profit margin.
Ramdev said Patanjali will invest over Rs 1,150 crore to set up six processing units and one R&D center in the current fiscal.
The units, said Balkrishna, will come up at drought-hit areas such as Vidharbh in Maharashtra and Bundelkhand region in Uttar Pradesh and Madhya Pradesh, and at least four of these will become operational by the end of the fiscal. He expects these to create more than 5 lakh jobs.
“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 said.
Patanjali sells its products though about 5,000 distributors, 10,000 health centers, 100 mega stores, besides through the retail market where it has tie ups with Fortune group and Reliance retail. It employs more than 15,000 people.
The company -- that today unveiled its new range of products including toilet soaps, anti-aging cream, digestive biscuits, energy bar, and whole milk powder, among others.-- has created four major verticals: natural food, processed food, personal care and home care to expand and consolidate distribution networks.
Balkrishna says Patanjali is now looking to increase its exports and improve online presence. Ramdev said the company claims Patanjali gets more than 5 crore online searches a month. Patanjali plans to spend around Rs 500 crore on cow protection, a research center, and setting up world class universities for Vedik education.