Yoga guru Baba Ramdev's company Patanjali Ayurved could soon give sleepless nights to MNCs such as Nestle, Colgate and Procter & Gamble (P&G). Patanjali's sales in financial year 2015-2016 rose 150 percent to Rs. 5,000 crore and is eyeing Rs. 10,000 crore this fiscal, the Business Standard reported.
The FMCG company recorded sales worth Rs. 2,006 crore during 2014-15.
Patanjali plans to invest Rs. 1,150 crore this fiscal to achieve the sales target of Rs. 10,000 crore.
The revenue target, if achieved, will put Ramdev's Patanjali ahead of FMCG companies such as Nestle, Colgate and P&G in India.
"This is just the beginning. Nestle, Hindustan Unilever and Colgate- Palmolive will be left clueless eventually," Ramdev was quoted as saying by Business Standard.
Ramdev's FMCG venture currently manufactures and sells homecare, beauty products, cosmetics, wellness and health drinks, and food products. Patanjali is now looking to expand by opening research and development divisions across five states in India.
"We will invest Rs 1,000 crore to set up 5-6 processing units in various parts of the country. Apart from this, we will invest Rs 150 crore in research and development (R&D), " Ramdev was quoted as saying by the Press Trust of India.
The FMCG company would also launch animal feed and khadi yoga-wear this fiscal.
Patanjali, which was founded in 2007, has grown ten-fold in the last five years, according to Business Standard.
Its revenues stood at Rs. 435 crore in 2011-2012 and net profit was Rs. 56 crore. The revenues rose to Rs. 5,000 crore during 2015-2016, according to the Ministry of Corporate Affairs data, said the daily.
Patanjali currently has 4,000 distributors, 10,000 stores and 100 mega-marts. It also has tie-ups with retail chains such as the Future Group and Reliance Retail for selling its products.
The FMCG venture is also eyeing the online space and exports to at least 10 to 12 countries.
Ramdev said that the company's Dant Kanti toothpaste recorded sales of Rs. 450 crore in 2015-16 and Kesh Kanti shampoo and hair oil posted Rs. 350 crore sales within a year.
According to the Broadcast Audience Research Council (BARC), Patanjali has emerged as India's top brand ahead of established FMCG brands such as Cadbury, Parle and Horlicks, for the period January 23 to 29, 2016 (week four).
[1 lakh = 100,000 | 1 crore = 10 million | 100 crore = 1 billion]
