MP govt gives 40 acres to Ramdev’s Patanjali at Rs 10 cr
The Dollar Business Bureau
The Madhya Pradesh Govt has allocated 40 acres of land to yoga guru Baba Ramdev’s company Patanjali Ayurved. The land allocated is in the Pithampur industrial area and Patanjali intends to set up a food processing unit at a cost of Rs 10 crore.
Speaking to the media, Kumar Purushottam, MD, Madhya Pradesh Audyogik Kendra Vikas Nigam, Indore said, "We have allotted 40 acres of land to Patanjali Ayurved at Rs 25 lakh per acre. We have sent a letter to the company, asking them to deposit Rs 10 crore in government exchequer for the land.”
Detailing the company’s objectives Kumar Purushottam said, the company planned to invest 500 crore for the next three years and provide employment to 5000 either directly or indirectly. The MP govt has also provided the Patanjali group with various facilities along with reduced taxes.
Earlier the govt of Maharashtra was eager to be associated with Ramdev’s Patanjali and was ready to offer 400 acres of land for the company to set up a food processing unit in the state. Acharya Balkrishna the M.D. of Patanjali Ayurveda finally decided to take up Madhya Pradesh’s offer. Speaking to the media Indore MP Audyokig Kendra Vikas Nigam Managing Director Kumar Purushottam had in August revealed that, "we have demarcated 400 acres of land to Patanjali Ayurveda in Pithampur Industrial area spread over an area of 7,000 acres in Dhar district and have got an advance of Rs 1 crore from the company.”
Patanjali has been giving sleepless nights to well established brands like, P&G, Colgate or Hindusthan Lever. It has been eating into the unorganised sector by appealing to the consumers through its keywords, 'natural', 'herbal', 'traditional grandmother's nuskha'. Experts believe that the company's strategy to keep the prices low and leverage on its herbal fad is appealing to all the sections of the society.
Patanjali has increased its market sphere by aligning itself with Kishore Biyani’s Future Retail and the results have been tremendous. Future Retail has recently come out with a report stating that Patanjali’s products are the third largest seller of FMCG at the Kishore Biyani led Future Retail stores.
"Patanjali has become number three in sales at Future Retail's stores. The number one is HUL followed by P&G and Patanjali is at number three at our place," Future Group CEO Kishore Biyani said when speaking to the media last month.