In online push, Patanjali starts e-commerce portal, ties up with Amazon, Flipkart

Baba Ramdev's Patanjali Ayurved on Tuesday announced its entry into the fast-growing e-commerce segment with the launch of its own platform.

Besides, it has tied-up with major e-commerce sites and online apps such as Amazon, Flipkart, Paytm Mall, ShopClues, Grofers, BigBasket and others to push Patanjali products online.

The firm is aiming a revenue of Rs 1,000-2,000 crore through online sales annually, Baba Ramdev said while announcing the online venture. A successful pilot -- www.patanjaliayurved.net -- was done in December, wherein it recorded online sales worth Rs 10 crore.

"Our partnerships with e-commerce platforms will help increase the reach of Patanjali products to more and more consumers in urban and rural regions," Ramdev said, adding that online mechanism aims to provide convenient and efficient options along with the extension of traditional retail market.

Patanjali products would, however, be sold at MRP and no discounts would be given by e-commerce companies.

"There is a commitment from the e-commerce firms that our products won't be sold at any discount," company's CEO Acharya Balkrishna said.

Patanjali also plans to expand into new product segments such as bottled water through brand 'Divya Jal' and apparels and footwear under the brand name 'Paridhan' this year.

"We have around 5,000 exclusive stores and would add more to that. We are going to launch a new loyalty card on January 26, named Swadesh Samridhi," Balkrishna said.

Patanjali has plans to connect around five crore people through its loyalty programme, which would also offer insured sum to the holders in case of death and disability.

"Our products are sold at around 15 to 20 lakh kirana stores and 75% are still left to be covered. We would connect with them and this year we are targeting to cover 50 lakh kirana shops. Now we are looking rural coverage also," he added.

The firm also plans to hire around 20,000 people in the next two months at various level from sales manager to zonal manager and regional manager. "We have created the annual production capacity worth Rs 50,000 crore, the highest in FMCG sector so far at Haridwar and Tejpur, Assam. Besides, work is in progress at full speed at Noida, Nagpur and Indore as well," Ramdev said.

From the next fiscal, it also plans to start exports once its export-oriented unit at Miha in Nagpur, Maharashtra becomes operational. "This will facilitate export of Patanjali products to the UAE, the US, Canada, Europe, South America, African countries besides others."

Recently, Patanjali had forayed into kids and adult diapers and affordable sanitary napkins segments. Last month, it had also announced venturing into solar equipment manufacturing.

In 2016-17, it had crossed a turnover of Rs 10,500 crore and aims a twofold growth this fiscal.

When asked if online push would have an adverse impact on its offline distributors and exclusive stores, Ramdev said, "It will not have a negative impact. We are also focusing on growing offline distribution."

STRETCHING FAR

• The firm is aiming a revenue of Rs 1,000-2,000 crore through online sales annually
   
• Products would be sold at MRP and no discounts would be given by e-commerce companies
   
• Patanjali also plans to expand into new segments such as bottled water, apparels and footwear this year
   
• It would open more exclusive stores and launch a new loyalty card - Swadesh Samridhi - on January 26
   
• From next fiscal, it also plans to start exports once its export-oriented unit at Miha in Nagpur becomes operational