Leaving well-established firms like Dabur and Marico behind, Patanjali Ayurved on Thursday reported a turnover of Rs 9,346 crore for 2016-17, a 100% growth over 2015-16.
Leaving well-established firms like Dabur and Marico behind, Patanjali Ayurved on Thursday reported a turnover of Rs 9,346 crore for 2016-17, a 100% growth over 2015-16. The company did not disclose its profit for the year. In 2014-15, Patanjali had reported revenues from operations of Rs 2,006.7 crore and a net profit of Rs 308.7 crore, data from the Registrar of Companies showed. Hindustan Unilever’s revenues have grown from around Rs 6,600 crore in CY96 to a little over Rs 31,000 in FY16 when it reported a net profit of Rs 4,136.5 crore.
With a presence across virtually every category in the FMCG space, Patanjali is hoping to grow at 100% again this year, founder Baba Ramdev told newspersons. Over the past few years, the company has launched a slew of products at competitive prices compelling incumbents in the sector to revamp its ayurvedic and herbal offerings. It now plans new manufacturing capacity in Guwahati, Noida, Nagpur and Indore, and with a view to exporting products, will set up a unit in the Nagpur special economic zone.
The product range will be strengthened with a bigger presence in spices, pulses, edible oils, biscuits, confectionery and juices. Among the segments that clocked high growth last fiscal were ghee, with revenues of close to Rs 1,500 crore, and herbal soap, which notched up sales of Rs 574 crore. The company’s hair care brand Keshkanti generated sales of Rs 825 crore, while the oral care brand Dant Kanti is now worth Rs 940 crore. Ramdev observed the company’s dish wash brand commands a 35% market share and should achieve a 60-70% share by next March.
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Patanjali sells its products primarily through its own outlets and plans to increase these to 12,000 this year from 6,000 currently. It had recently indicated to analysts that it would be adding mega stores of 2000 sq ft each in A class cities. Patanjali is not planning an initial public offering (IPO) but proposes to enter the restaurant sector and the textiles space.
Acharya Balakrishna, CEO, Patanjali, said the company was working on an online sales strategy. “One reason consumers shop online is that they want to buy products at discounted prices but with narrow margins it becomes difficult to sell our products. We are working on a plan which will allow us to earn better margins online,” Balakrishna said. In January last year, the company tied up with Pluss — a medicine and healthcare products delivery service — for the Delhi market. It later launched its own shopping app under the Patanjali brand allowing consumers to shop online.