Patanjali eyes double growth in revenue at Rs 20,000 crore in FY18

IN BRIEF: 

⇒ Patanjali eyes sales of over Rs 20,000 this fiscal
⇒ Looks at doubling distribution network to 12,000 
⇒ Plans to be number 1 in most product categories
⇒ Patanjali in the process of setting up huge production units in Noida, Nagpur, Indore
 

Baba Ramdev-led Patanjali is eyeing a two-fold jump in sales at over Rs 20,000 crore this fiscal as it plans to double its distribution network to 12,000 across the country and is adding to the capacity.

Besides, the company is keen to further strengthen its presence and lead in most product categories.

The Haridwar-based FMCG firm had clocked a turnover of Rs 10,561 crore in 2016-17.

"We would grow more than double this year... By the next year, Patanjali would be in the leading position and in most of the product categories, it would be number one," yoga guru Ramdev said.

He asserted that Patanjali will be the biggest Swadeshi brand in a span of one or two years. Ramdev backed it up, saying "our profit is growing at the rate of 100% every year".

The company is in the process of setting up mega production units at several places, including Noida, Nagpur, and Indore, which would take its production capacity to Rs 60,000 crore, from the existing Rs 35,000 crore.

"Our Noida facility would have a production capacity of Rs 20,000 crore, Nagpur Rs 15,000-20,000 crore and Indore Rs 5,000 crore," he added.

The company is also strengthening its distribution network to reach out to more consumers. "We would double our distributors' network to 12,000, from the present 6,000," Ramdev said.

This fiscal, the company is looking to sharpen its focus on categories such as spices, pulses, vegetable oil, biscuits, confectionery and juices and add more products to these segments.

In 2016-17, Patanjali Ayurved contributed Rs 9,634 crore to its turnover while Divya Pharmacy that manufactures ayurvedic medicine had clocked Rs 870 crore sales.

During the fiscal, Patanjali ghee had a business of Rs 1,467 crore and oral care brand Dant Kanti Rs 940 crore. Its personal care brand Keshkanti had clocked sales of Rs 825 crore and herbal soap Rs 574 crore.

"Dant Kanti has now 14% market share in the segment. Honey is around Rs 350 crore and would grow to Rs 500-600 crore this year. Our kacchi ghani mustard oil is around Rs 522 crore and would grow up to Rs 1,000 crore," he added.

According to the company, it has now 15% market share in shampoo, 14% in face wash, 35% in dishwasher and 50% in honey.

Patanjali CEO Acharya Balkrishna said the company is lining up Rs 5,000 crore to set up five manufacturing facilities across the country.

Asked if the company is looking at entering any new product category this year, Ramdev said: "This year, we will focus on our growing existing categories." Ramdev rubbished criticism that the company outsources manufacturing, adding that "99% of our products are manufactured in-house. People try to spread rumours about Patanjali. We have production capacity of around Rs 35,000 crore".

The company is also exploring several new initiatives to open a chain of restaurants under the Patanjali brand.

"We are working on the viable business model for it. The company will take time to understand the restaurant business before opening one," said Balkrishna, adding that it would take a year or even more.

The firm is also planning a push for exports after its mega food park in Nagpur is commissioned.

"We will start exports in a big way from the next financial year. Right now also we export, but it is very small. We have already started construction of a manufacturing facility for exports at SEZ in Nagpur," Ramdev added.