Patanjali to enter garments business, targets Rs2,00,000-cr sales in 5 years
28 September 2017
Patanjali Ayurved is now looking to foray into textiles as it expands its product portfolio and emerge a Rs2,00,000-crore brand in the next five years.
"Patanjali will soon get into the garment and textile market and break the stronghold of foreign manufacturers," its founder yoga guru Baba Ramdev said at the inauguration of Patanjali Gramodhyog in Alwar. "Patanjali will make everything from underwear to ethnic and sportswear soon," he added.
Patanjali, which has majored from a manufacturer of ayurvedic products to a consumer goods major plans to foray into new verticals and open new integrated food parks and manufacturing units, Ramdev said.
The Haridwar-based firm is aiming at a manufacturing capacity and sales turnover of Rs1,00,000 crore in the next few years as it expands its product portfolio.
Patanjali, he said, may require a Rs5,000-crore loan to fund its immediate expansion plans.
"We are working in several verticals which have a market size of over Rs10,00,000 crore and Patanjali has a market share of 10-20 per cent (in that)... in the next three to five years, Patanjali would be over Rs1,00,000-crore brand and there should be no surprise in it," Ramdev said at an AIMA event here.
The company, promoted by yoga guru Baba Ramdev, which has taken on established multinational FMCG brands, hopes to overtake foreign textile makers.
With its emphasis on locally made products, the company and Ramdev have made a mark in the consumer and personal care market.
Recently, the brand said it will launch its line of 'Swadeshi' apparel, with an initial sales target of Rs5, 000 crore. Patanjali is also reportedly in talks with several investment banks to raise structured credit worth Rs1,000 crore to fund its expanding interests.
It recently announced the launch of packaged drinking water Divya Jal and there were reports of the group making an entry in the dairy business.
Ramdev also requested the government to reduce the tax burden on certain dairy products like ghee so that a large section of people could benefit from this.
"Earlier, ghee was taxed around 5-6 per cent and now under GST, it is taxed at 12 per cent on GST," he said.
The firm, which clocked revenues of Rs10,561 crore in 2016-17, has become the No 2 FMCG brand in India after Hindustan Unilever.
Patanjali CEO, Yogi Balakrishnan, is now ranked the eighth richest Indian in Hurun's annual list, against the 25th spot last year, after his wealth grew by 173 per cent to Rs 70,000 crore.
However, Ramdev said the profit earned by Balakrishnan is to help the needy and not for luxury. The brand has also partnered with Amazon India to list its products on the portal's ayurveda page.