Ayurvedic and natural products maker Patanjali said on Tuesday that it has clocked a turnover of over Rs 30,000 crore in FY21 and aims to make all group companies debt-free in the next 3-4 years
Addressing the media about the company’s business updates, Baba Ramdev said that the company aims to become the top FMCG player, claiming that Patanjali will overtake Hindustan Unilever (HUL) by 2025.
HUL, currently the largest FMCG player in the country, clocked a turnover of Rs 45,311 crore in FY21, while ITC’s annual consumer spends on its FMCG brands combined crossed Rs 22,000 crore in FY21. Meanwhile, Dabur clocked consolidated revenues of Rs 9,562 crore in FY 21.
This also comes after a year of FMCG companies seeing an overhaul of their supply chains after the first wave of the pandemic had a major impact on their businesses last year. Most FMCG majors saw operations being disrupted due to the nationwide lockdown where several stores remained shut and supply chains disrupted due to closure of borders and fear of the virus. A dampened consumer sentiment and lower discretionary spends also further impacted FMCG majors. However, the past year also saw a major shift in demand for natural, ayurvedic and immunity-boosting products with all FMCG majors now laying a much larger focus on these products across categories.
Patanjali now expects to invest Rs 5000-Rs 10,000 crore over the next 5 years, Ramdev added, but didn’t elaborate on how the company will fund the investments.
Giving a breakup of the remaining group companies, Patanjali said in a statement that Patanjali Ayurved Limited clocked a turnover of Rs 9,783.81 crore, Patanjali Natural Biscuit Rs 650 crore, Divya Pharmacy Rs 850 crore, Patanjali Agro Rs 1600 crore, Patanjali Transport Rs. 548 crore and Patanjali Gramudhyog clocked a turnover of Rs 396 crore, taking the turnover of the Patanjali group (ex-Ruchi Soya) to over Rs 14,000 crore.
Ruchi Soya, which Patanjali acquired in 2019, saw a growth of 24.4 percent, with revenue from operations coming in at Rs 16,318 crore, Ramdev added. In 2017, Ruchi Soya, was dragged into Insolvency & Bankruptcy Code(IBC) proceedings post which Patanjali acquired the company for Rs 4,350 crore through the resolution process.
Ramdev said that Ruchi Soya’s debt currently stands at Rs 3,300 crore and that 40 percent of Ruchi Soya’s Rs 4,300-cr FPO proceeds will be used to pare down debt.
Elaborating on Ruchi Soya, Patanjali said that it has reoriented Ruchi Soya into an FMCG & FMHG (Fast Moving Health Goods) company and has added Biscuits, Breakfast cereals, Noodles and Nutraceuticals business to its portfolio while expanding Nutrela range (Nutrela Gold, Honey, High Protein Aata)
The company has also launched a range of 25 plant-based nutraceuticals products on Tuesday under the brand Patanjali Newla. These include health supplements such as Vitamin B12, Vitamin D, Vitamin C-Zinc Complex, Spirulina, among others. “In India, 80-90 percent of the people have deficiency of Vitamin D, 50-60 percent of people have protein deficiency,” Ramdev added.
However, Ramdev’s focus on natural nutraceuticals comes fresh on the heels of backlash he faced from doctors across the country including the Indian Medical Association (IMA) for his comments against allopathic medicine. A video of Ramdev calling allopathy stupid went viral in May post which the then Union Health Minister Dr Harsh Vardhan too wrote to Ramdev asking him to withdraw his statements. The IMA too released a strongly worded statement demanding that Ramdev be booked under the Epidemic Act. Ramdev withdrew his statement on May 23.
Patanjali also said that it plans to employ 5 lakh people in the next 5 years for edible oil production. At a time when palm oil prices have risen drastically in India, Ramdev said that the company aims to reduce India’s dependency on edible oil imports, and that Patanjali will play an important role in making India self-reliant in edible oil production. However, he didn’t elaborate on how the company specifically plans to do the same.
“We have developed a strategy for all types of edible oils from cultivation and plantation of oilseeds to production, processing and marketing. We are trying to eliminate foreign dependence by doing palm plantation and cultivation of soya and sunflower etc.,” the company said in a statement.
(Edited by : Aditi Gautam)