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PatanjalimaygoglobalneedsRs1000crinvestmentsforexpansion

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PatanjaliclockedrevenuesofRs4,5005,000croreinFY16(gheesalesbeingRs700crore,toothpasteRs300croreandherbalcosmeticsRs250crore)
andplanstogrowat100125percentannuallyforthenextthreeyears.

Yogaguru,BabaRamdevsPatanjalirangeofproductsisridingontheincreasingconsumeracceptanceandshifttowards
ayurvedicandnaturalproducts.
AreportbyReligareCapitalMarkets,preparedafterinteractionwithPatanjaliAyurvedsManagingDirector,AcharyaBalkrishna,
hasinterestingfactsaboutthecompanyanditsfutureplans.Welistoutsomeofthehighlights.
PatanjaliclockedrevenuesofRs4,5005,000croreinFY16(gheesalesbeingRs700crore,toothpasteRs300croreandherbal
cosmeticsRs250crore)andplanstogrowat100125percentannuallyforthenextthreeyears.Thecompanymayexplore
internationalmarketsifgrowthinthedomesticmarketbecomessaturated.
NewproductslaunchedinFY16aregainingtractionandthecompanyplanstorolloutanextensiverangeofbabycareproducts,
premiumherbalcosmetics,guavadrinksanddairyproductssuchasWMP(WholeMilkPowder)inthenearterm.Inhouse
manufacturingcapacityofhoney,whichwaslaunchedaboutsixmonthsago,hasbeenrampedupto65tonnes/dayandthe
companyplanstoincreasethisto100t/day.NoPatanjaliproducthaseverbeenwithdrawnfromthemarketthusfar.
Patanjalisourcesitsrawmaterialdirectlyfromfarmersandafewvendors,andbelievesrawmaterialavailabilitycouldfallshortin
themediumterm,giventheshortageincultivationofherbalingredients.Currently,90percentofitsproductsaremanufacturedin
houseandmanagementintendstomaintaintheselevelsinordertoensureproductquality(outsourcingisonlytoexclusive
manufacturers).
Distributionisthrough80superstockistsand2,0003,000distributors.Thecompanyalsohas1,200Chikitsalyas(treatment
centres)and7,000ArogyaandSwadeshiKendras,whichitplanstodoubleinFY17.Patanjalialsoplanstorampupitspresence
onthemoderntradeandecommerceplatformstodriveconsumption.
ProductpricingisonaCost+Profitbasisandisirrespectiveofcompetitorprices.
AsperAcharya,ifsuppliedwithhighqualityproducts,Indiaspersonalcaremarkethashighergrowthpotentialascomparedto
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thefoodmarketgivenhigherpenetrationofpersonalcareproductsinruralIndia.
PatanjalirequiresaninvestmentofRs1,000croreintheneartermtoexpandandmoderniseitsfacilitieswhichwilllargelybe
debtfunded.

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