Patanjali eyes ₹25k cr turnover in FY20
NEWDELHI: Patanjali Ayurved Ltd on Friday said it expects to close the current fiscal year with a ₹25,000 crore turnover, after it acquired bankrupt Ruchi Soya late last year. Addressing journalists in the capital, Baba Ramdev said the company was also in the process of rolling out new products, including honey, valueadded flour and premium cooking oils, under Ruchi Soya’s existing Nutrela brand.
In December 2019, Patanjali spent ₹4,350 crore to take over the debt-laden Ruchi Soya through the insolvency process—its maiden acquisition in the consumer goods space.
Ramdev said the company will also liquidate the promoter shareholding in Ruchi Soya over the next two years in line with Sebi regulation. “We will go for Ruchi Soya’s share sale in the next two years in accordance with the regulations.”
Bse-listed Ruchi Soya sells popular cooking oil brands soyabean oil brands such as Mahakosh Soyabean oil, Ruchi Gold Palmolein
and Sunrich sunflower oil,and packaged Soya brand Nutrela.
New products will include premium Oil Nutrela Gold, Nutrela Honey and Nutrela Protein Atta. The move will now give Patanajli more heft in India’s fast moving consumer goods market where its once-spectacular growth rates have worn off.
Ramdev added that Ruchi Soya will continue to be listed on the bourses.
Patanjali Ayurved first started selling branded goods in the market in 2007, and later helped shore up demand for ayurvedic or herbal products in the country by selling tooth pastes, face washes, soaps, and cooking oils.
The company has grown to become a sizeable player in India’s fast moving consumer goods market that also sees the participation of Hindustan Unilever, Colgate Palmolive, among others.
Ramdev said the company is in the process of integrating its business with that of Ruchi Soya, and the two will leverage each other’s distribution to push more products in the market.