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Investment 2015-11-30

Yoga Guru Baba Ramdev announces to invest Rs 1,000 cr on Patanjali Ayurved’s expansion

Eyeing big over eCommerce and product export, Haridwar-based Ayurvedic products manufacturer, Patanjali Ayurved, founded by Yoga Guru Baba Ramdev has been successfully running 15,000 stores across India.

Yoga Guru Baba Ramdev announces to invest Rs 1,000 cr on Patanjali Ayurved’s expansion

The Haridwar-based Patanjali Ayurved firm, the FMCG venture promoted by Yoga Guru Baba Ramdev, will invest Rs 1,000 crore next year on expansion and plans to sharpen focus on e-commerce and exports.

It will set-up manufacturing plants in South India and is looking to become a partner in mega food parks being developed in southern cities.

Patanjali, which has 15,000 stores across the country, plans to add more products in segments where it already has presence such as dairy, instant foods, baby care, natural cosmetics and health supplements.

"We are likely to invest about Rs 1,000 crore in 2016 for various initiatives," Ramdev told PTI. On the source of funding, he said banks have already sanctioned Rs 500 crore as working capital loan and they are ready to grant more funds for further expansions. "There is no issue on funding," he said.

Patanjali had sales turnover of Rs 2,000 crore in last fiscal and expects to reach Rs 5,000 crore in FY 2015-16. It operates a large mega food park at Haridwar. In dairy segment, Ramdev said that Patanjali is planning to launch cow milk powder and is also looking at cheese and chocolates.

That apart, Patanjali will enter into manufacturing of nutritious animal feed and work of improve the indigenous cow breeds to boost milk production.

Reportedly, the company will launch its premium natural cosmetic under Saundarya brand and baby care product range under Shishu care brand next month.

On expansion of sales network, Ramdev said Patanjali would soon be present in all modern retail chain format.

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