Baba Ramdev’s Patanjali Ayurved looks to take on HUL, and is keen to surpass the FMCG major’s turnover in 3-4 years.
Baba Ramdev’s Patanjali Ayurved looks to take on HUL, and is keen to surpass the FMCG major’s turnover in 3-4 years. “Patanjali will grow at a faster pace this year as compared to last year. Hopeful that Patanjali will beat HUL’s turnover in next 3-4 years,” Acharya Balkrishna, CEO, Patanjali Ayurved told ET Now. While HUL’s turnover is around Rs 30,000 crore, Patanjali’s figure for FY17 is estimated at Rs 10,560 crore, or nearly a third of HUL’s revenue. In the current year, Patanjali is looking to up the ante, and make a foray into the online space.
The Haridwar-based company may enter into agreements this month with major online retailers — Amazon, Flipkart, Paytm Mall, 1MG, bigbasket, grofers, shopclues and snapdeal — a step through which its range of products will be available on various online platforms. “We are in talks with big e-commerce players. We have signed Mous with all major e-tailers,” Acharya Balkrishna told the channel.
Some of the company’s products are already available on several online platforms through various other sellers but this would allow the Haridwar-based firm to systematically place its range of products in the online space. “Products will be sold at MRP online as well,” Acharya Balkrishna said.
The CEO also shared that the company does not have any plans for an IPO now. “We have no plans for an IPO yet, we will continue to sell products at low cost. We have been operating the company as a trust. We have not taken as profits or dividend. The bank loans taken will be used for expansion. We will be resorting to bank loans instead of the stock market tio raise funds,” Acharya Balkrishna told ET Now.
In September last year, the company signed an MoU for an exclusive sales and distribution agreement with India‘s largest manufacturer of edible oil, Ruchi Soya Industries. “Patanjali will make everything from underwear to ethnic and sportswear soon,” Baba Ramdev said at a recent event. Patanjali also said it will launch its line of ‘Swadeshi’ apparel, with an initial sales target of Rs. 5, 000 crore. Patanjali is also reportedly in talks with several investment banks to raise structured credit worth Rs 1,000 crore to fund its expanding interests.
Outlining Patanjali’s ambitious plans, Baba Ramdev said an event organized by the All India Management Association, “Patanjali’s revenue will be more than HUL’s (Hindustan Unilever Ltd) in 2018-19. To support this growth, we’ll need to borrow over a period of time,” adding that his dream is to emerge as the “largest packaged goods company in the world by 2020-21.”