Patanjali eyes Rs 20k cr turnover this year

Fast growing FMCG company Patanjali group, whose name is synonymous with yoga guru Baba Ram Ramdev, has set an ambitious turnover target of Rs 20,000 crore this financial year after crossing the Rs 10,000 crore mark in 2016-17. “By next year, Patanjali would be in the leading position and in most of the product categories, it would be the number one company. In the next two years, we will be the number one Swadeshi FMCG company in India,” Ramdev said.

“Our profit is growing at the rate of 100 per cent every year,” he added.

To the particular question that whether Patanjali will be ahead of ITC, he said the rival company still has some foreign holding. It is good that ITC now wants to change its focus from tobacco, he added.

In a packed press conference here, Ramdev said he is hopeful of meeting the target through teamwork, planning and trust and confidence of consumers. He said the group would double its distribution network to 12,000 units across the country.

The work is going on for foray into textile and restaurant business, Ramdev said but did not give any timeline. “Yes, when we enter textile, we will also produce jeans,” he said.

Group CEO Acharaya Balkrishna said construction work has started on the export unit being set up in Nagpur within the special economic zone. The unit will help the company to attract overseas buyers who can visit to satisfy themselves on quality, he said. “Even without textile and restaurant, Patanjali will achieve the targetted sales this year,” he said.

When asked if the company is looking at entering any new product category this year, Ramdev said, “This year, our focus will be on increasing growth in existing categories.” This fiscal, the company is looking to enhance its focus on spices, pulses, vegetable oils, biscuits, confectionery and juices by planning to add more products into these segments.

In FY 2016-17, Patanjali Ayurved contributed Rs 9,634 crore to its turnover, while Divya Pharmacy that manufactures Ayurvedic medicines clocked Rs 870 crore in sales.

In different brands, the cow ghee did a business of Rs 1,467 crore, followed by herbal toothpaste Dant Kanti at Rs 940 crore.

Its personal care brand, Keshkanti hair oils and shampoo had sales of Rs 825 crore and herbal soap Rs 574 crore, mustard oil Rs 522 crore, atta Rs 407 crore, biscuit Rs 180 crore, honey Rs 335 crore, washing powder and cake Rs 325 crore, herbal skin care Rs 231 crore, facewash Rs 228 crore, chyawanprash Rs 176 crore, aloe vera juice Rs 172 crore, aloe vera gel Rs 155 crore and dishwash (made from lemon and ash) Rs 148 crore.

“Both Dant Kanti and Kesh Kanti have now about 15 per cent market share in their own segment,” Ramdev said, adding Patanjali targets to increase turnover in honey to as much as Rs 600 crore and mustard oil to Rs 1,000 crore this year.

Patanjali also claimed 14 per cent market share in face wash, 35 per cent in dishwasher and 50 per cent in honey. Balkrishna said, Patanjali had not commissioned any agency to get the market survey, rather these agencies have provided data to the group.

Patanjali is in the process of setting up mega production units at several places, including Noida, Nagpur and Indore, which would increase its total production capacity by 71 per cent.

According to Balkrishna, the company will be investing about Rs 5,000 crore to set up the five manufacturing facilities.