Friday, May 5, 2017
The Billionaire Monk: What is Baba Ramdev's Patanjali empire all about
Patanjali, the FMCG venture of Baba Ramdev, is today one of the biggest players in the sector in India.
Patanjali's annual turnover for 2016-17 stood at Rs 10,561 crore. For the next year, Baba Ramdev has set higher targets for Patanjali: greater presence across India and increased production capacity.
Sharing his vision for Patanjali, Baba Ramdev said at a press conference, "We would grow more than double this year... By next year, Patanjali would be in the leading position, and in most product categories it would be number one".
To achieve this, mega production units in Noida (Uttar Pradesh), Nagpur (Maharashtra) and Indore (Madhya Pradesh) are being set up which will help Patanjali manufacture goods worth Rs 60,000 and more next year as compared to Rs 35,000 crore currently.
HEALTH MEANS WEALTH
Baba Ramdev's Patanjali has registered staggering growth since last year. In 2015-16, Patanjali's revenue figures stood at Rs 5,000 crore. In a year, the Haridwar-based fast-moving consumer goods (FMCG) company's revenue has zoomed to more than Rs 10,000 crore.
Patanjali's Ayurved division is the star performer for Baba Ramdev's brand. The Ayurved division registered Rs 9,346 crore in business for the financial year 2016-17. This is followed by the Divya Pharmacy division (which comprises medicines, oils, digestive churan etc.) which accounted for Rs 870 crore worth of sales.
Patanjali Gramodyog (the cereal and health drinks division) clocked Rs 345 crore in sales in 2016-17.
With an eye on wider reach, Baba Ramdev said Patanjali plans to double its distribution channels from existing 6,000 to 12,000.
MILKING THE HOLY COW
Patanjali ghee is the largest selling product of the company for 2016-17, clocking Rs 1,467 crore in sales. Wrestler Sushil Kumar, a two-time Olympic medal winner, has been chosen by Patanjali to advertise its ghee. The product tagline emphasises on the "desi" factor, a word synonymous with Baba Ramdev and Patanjali.
Patanjali's desi (Indian) versus foreign products pitch has seen the company capturing sizeable market share.
Patanjali's oral brand Danta Kanti has recorded annual sales figures of Rs 940 crore. According to Patanjali, it now has a 15 per cent market share in shampoo (Kesh Kanti brand), 14 per cent in face wash and 50 per cent market share in honey (Patanjali Honey).
"Honey (sales) is around Rs 350 crore and would grow to Rs 500-Rs 600 crore this year. Our kacchi ghani mustard oil (sales) is around Rs 522 crore and would grow to Rs 1,000 crore," Baba Ramdev said.
Denying allegations of outsourcing manufacturing, Baba Ramdev said 95 per cent Patanjali products are manufactured in-house. He said Patanjali doesn't plan to enter new product segments this year, but wants to strengthen its existing products.