Baba Ramdev push into the FMCG sector with Patanjali Ayurved has been extremely successful and he has taken on all the biggies in the segment despite all the odds
Baba Ramdev push into the FMCG sector with Patanjali Ayurved has been extremely successful and he has taken on all the biggies in the segment despite all the odds and established himself on a sound footing. In another big move, Baba Ramdev led Patanjali Ayurved has hired two investment banks in order to raise structured credit worth Rs1,000 crore, swarajyamag.com said quoting persons aware of the development. One of the two banks is a Hyderabad-based, which specialises in consumer packaged goods segment, the report added. These banks have also been asked to approach both foreign and domestic funds. Last month, the company had made clear its intention to borrow Rs 1,000 crore to finance its expansion plans.
Earlier in May, the group had announced 111 percent increase in turnover to Rs 10,561 crore in 2016-17. It also plans to double the annual production capacity and number of distributors this year in its efforts to become India’s biggest swadeshi brand in a year or two, Indian Express said. The share of Patanjali Ayurved, Divya Pharmacy and Patanjali Gramodhyog in FY 17 is Rs 9,346 crore, Rs 870 crore and Rs 345 crore, respectively. As per the paper, Patanjali’s turnover had grown by 150 percent to Rs 5,000 crore in 2015-16.
Baba Ramdev had also said that his company was planning to open restaurants which will challenge established multinational food chains like McDonald’s, KFC and Subway. “We haven’t launched them. But we are working on this direction. In future, it will surely happen,” he was quoted as saying by the paper.
Recently, Canteen Stores Department (CSD), the retailing entity selling consumer goods to the armed forces, suspended the sale of Patanjali’s amla juice after the product did not carry the test carried at West Bengal Public Health Laboratory in Kolkata. Baba Ramdev had said that there was no question from CSD now as it was because of some lack of information on their side, Indian Express said.