How Baba Ramdev plans to beat Nestlé, P&G and Colgate

FMCG major aims to double its revenue to Rs 10,000 crore (Rs 100 billion) in 2016-17

Patanjali Ayurved, co-founded by televangelist Ramdev, is targeting Rs 10,000-crore revenue in 2016-17, after sales grew 150 per cent in the previous financial year to  Rs 5,000 crore (Rs 50 billion).

The revenue target, if achieved, will put Patanjali Ayurved ahead of multinationals like Nestlé, Colgate-Palmolive and Procter & Gamble in India.

Delhi-headquartered Patanjali Ayurved has four business divisions: home care, cosmetics and health, food and beverages, and health drinks.

The company would venture into khadi products and animal feed this year, Ramdev said.

Patanjali Ayurved, founded in 2007, has grown more than 10 times in revenue in five years, an unprecedented feat in India’s fast-moving consumer goods industry.

“This is just the beginning. Nestlé, Hindustan Unilever and Colgate- Palmolive will be left clueless eventually,” Ramdev said.

The company’s Dant Kanti toothpaste posted sales of Rs 450 crore (Rs 4.5 billion) in 2015-16 and Kesh Kanti shampoo and hair oil posted Rs 350 crore (Rs 3.5 billion) sales in less than a year, he pointed out.

Patanjali Ayurved plans to increase its distribution network in 2016-17.

The company has 4,000 distributors, 10,000 stores and 100 mega-marts.

Last year, Patanjali Ayurved tied up with retail chains the Future Group and Reliance Retail.

To meet the increasing demand, the FMCG firm will set up at least four new manufacturing units in the current year at a cost of Rs 1,000 crore (Rs 10 billion).

“We will set up six processing units in various parts of the country.

Apart from this, we will invest Rs 150 crore in research and development,” Ramdev said.

The units will come in Vidarbha in Maharashtra, Bundelkhand in Uttar Pradesh and in Madhya Pradesh. “Banks are more than willing to lend to us.

"We have no shortage of funds to expand,” Ramdev said.

“We are going to look at an e-commerce strategy and focus on strengthening our exports to at least 10-12 countries,” said Balkrishna, Ramdev’s disciple and co-founder of Patanjali Ayurved.

Image: Baba Ramdev. Photograph: PTI