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Patanjali Ayurved allots Rs 1000 cr for expansion

23-February-2016
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Patanjali Ayurved allots Rs 1000 cr for expansion

Patanjali Ayurved Ltd., which expects to clock sales of Rs 20,000 crore in FY20 is working on improving its distribution system.  Currently, the company plans to invest Rs 1,000 crore this year on distribution, expansion and e-commerce.

In January the local unit of world’s largest retailer, Walmart India, was in talks with yoga guru Baba Ramdev to sell its Patanjali products across its 20 wholesale cash-and-carry stores in nine states.

Last year Future Group partnered with Patanjali Ayurved to sell its products with a revenue target of Rs 1,000 crore by mid next year. Both considered production partnership, with Future Group setting up an office in Haridwar (where Patanjali’s food-processing units are) for distribution and marketing of Patanjali products. Starting with Big Bazaar (part of Future Retail), the distribution of the entire range of Patanjali products was extended to other chains of the group like KB’s, Aadhaar and Nilgiris, which are all part of the Future Consumer Enterprise.

Earlier Reliance Retail pioneered the idea of selling Patanjali Ayurved’s products through its stores in 2014. Other modern retailers are creating exclusive space for Patanjali products at their outlets. Big Bazaar, Spencer’s Retail, Hyper City and D Mart are putting up standalone racks and counters to stock Patanjali’s grocery products.

Many retailers have also set up Patanjali mega marts (3,000-5,000 sq ft) starting with Nagpur last November followed by Delhi, Bengaluru and Kolkata. Its 15,000 franchise stores, network of 3,000 health centres, over 5,000 retail outlets, 80 super distributors and 700 distributors and independent grocery stores are also to be taken note of. Pittie Group, the exclusive Pan-India distributor for Patanjali Ayurved across organised trade, is aiming that 15-20 % of Patanjali’s turnover should come from modern trade.

Patanjali is considering setting up manufacturing units and food processing units in Andhra Pradesh, Karnataka, Maharashtra and Madhya Pradesh to cater to the Southern market and meet the demand of other regions.

It must be mentioned that Patanjali Ayurved sells around 500 consumer goods, ranging from ayurveda-based products to staples such as ghee, pulses and edible oils to personal products such as toothpaste, hair care and skin cleansers and processed food products such as noodles, biscuits and juices. 

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