Patanjali doubles turnover to Rs10,561 crore, to double sales in FY18

Adjust Comment Print

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

"I believe 20- 25 percent revenue growth for Patanjali in FY18 is a more realistic and an achievable target", believes A K Prabhakar, head of research at IDBI Capital.

Baba Ramdev has exuded confidence that Patanjali will be the largest brand in India within 1-2 years. But that is not true.

The company, which has declared war on products sold by foreign firms, often calling them harmful and full of chemicals, plans to further dominate the market, though its own products have come under the scanner of Indian authorities over quality issues. Honey is around Rs350 crore and would grow to Rs500-600 crore this year. Also, it is unclear how much of the revenues have accrued from trading activities. In FY 2016-17, Patanjali Ayurved contributed Rs9,634 crore to its turnover, while Divya Pharmacy that manufactures ayurvedic medicine had clocked Rs870 crore sales. Their Gramodyog Nyas vertical, which deals with animal husbandry and economic and social uplift of villagers generated Rs 345 crore of business. As per market experts, the Yoga followers of Baba Ramdev are the loyal customers of Patanjali.

While the founders of the company are confident of hitting Rs 20,000 crore mark, analysts think otherwise.

Sharing his vision for Patanjali, Baba Ramdev said at a press conference, "We would grow more than double this year. Let's end their monopoly..."

More news: Google agrees to pay Italian tax authority €306mn

The company will also foray into the restaurant business and compete with the likes of McDonald's, KFC and Subway.

"We are working on a business plan and branding strategy to enter the restaurant business by serving nutritious and hygienic food", he said. "We will venture into the segment very soon".

"We will start exports in a big way from the next financial year".

Patanjali is right now, singlehandedly, transforming Indian FMCG sector, and we are actually witnessing a revolution here.

Continuing in the same vein, he referred to Prime Minister Narendra Modi and said "patriotism is in his blood and he won't flinch from following his duty".

Comments