Patanjali targets Rs.10k cr turnover in 2016-17
The Dollar Business Bureau
Yoga Guru Baba Ramdev-led Patanjali Ayurved is targeting a turnover of Rs.10,000-crore in the current fiscal, with an expected growth of 150 percent.
While speaking to reporters at a press meet, Baba Ramdev said that Patanjali Ayurved will be reaching a turnover of Rs.10,000 crore in 2016-17, from Rs.5,000 crore in the previous year. The company is expected to grow by 150 percent in 2016-17.
If the revenue target is achieved, Patanjali Ayurved will be ahead of major multinationals in India like Colgate-Palmolive, Nestle and Procter & Gamble.
To meet the increasing demand, the company is expanding its manufacturing capacity and will spend over Rs.1,000 crore to set up six processing facilities across the country. Besides, it will also invest around Rs 150 crore for its R&D.
“The demand for Patanjali products is rising and we need to enhance our processing facilities. We are planning to establish five-six processing units in the states of Assam, Madhya Pradesh, Maharashtra, Haryana, Rajasthan and Uttar Pradesh,” Baba Ramdev informed.
The main focus of the company would continue to be on five verticals home care, food and beverages, health drinks, healthcare and cosmetics. The FMCG form is also planning to venture into animal feed and khadi products this year.
Patanjali Ayurved has around 30 products in its range that include anti-aging cream, cow milk powder, digestive biscuits, energy bar, fairness cream, health drink, moisturizing cream, etc.
The company is also planning to enhance its distribution network in the current year. It has its presence all over the country with 10,000 stores, 4,000 distributors and 100 mega-marts. The company has tied-up with retail chains like the Kishore Biyani-led Future Group and Mukesh Ambani’s Reliance Retail.
Patanjali is also targeting the international market and looking at e-commerce to expand the reach of its products. "We are looking at an e-commerce approach and focussing to enhance our exports to 10-12 countries," said Acharya Balkrishna, close aide of Baba Ramdev and co-founder of Patanjali.
Over the last five years, Patanjali Ayurved has grown 10 times in terms of revenue, an unprecedented achievement in India's FMCG industry. From a Rs.446 crore company in 2011-12, the firm’s revenue shot to Rs.2,006 crore in 2014-15, and about Rs.5,000 crore in fiscal year 2016.
