Electric vehicle, steel makers seeking JVS, buyouts: Patanjali
NEWDELHI: Patanjali Ayurved Ltd, the packaged goods company founded by yoga-guru-turnedbusinessman Baba Ramdev, has been approached by electric vehicles (EVS), steel and mobile chip manufacturers for support, managing director Acharya Balkrishna said in an interview.
While some of these companies are exploring a buyout, some are seeking joint venture (JV) partnerships and financial aid to run their businesses. Balkrishna declined to name the companies, and said Patanjali is yet to decide on possible diversifications.
Patanjali will invest in or partner with only home-grown companies.
“Manufacturers from almost all sectors, including steel, electric vehicle, anti-radiation mobile chip, have approached us. But we can’t do everything. We’ll only do whatever is in sync with our business, and anything that the people of the country need,” Balkrishna said, adding that the Haridwar-based firm will continue to strengthen its ‘swadeshi’ movement and support companies with similar agenda.
This follows Patanjali’s diversification plans into solar power equipment manufacturing by acquiring Advance Navigation and Solar Technologies Pvt. Ltd, Mint reported on 4 December 2017.
The promotion of EVS is a strategic goal for India’s National Democratic Alliance (NDA) government, which is keen to cut the country’s oil imports. Also, of ₹1.29 lakh crore as total underlying default under the Insolvency and Bankruptcy Code (IBC), the steel sector accounted for around half (44.25%) or ₹57,001 crore, according to the Economic Survey released earlier this year. Of the initial 12 defaulting companies, Reserve Bank of India (RBI) has asked banks to start bankruptcy proceedings against, four are steel makers.
Patanjali Ayurved may emerge as a white knight riding to the rescue of infrastructure companies weighed down by stressed assets, Mint reported on July 17, 2017.
“If we say we are entering an industry, others get scared. At times, people spread words (that we are entering a sector) as well,” said Balkrishna who owns 98.5% in the company.