PATANJALI IN NEWS

The hindu
Patanjali doubles sales, closes in on FMCG biggies
Home-grown Patanjali Ayurved Ltd. (PAL) is growing rapidly, giving the much-older
established players in the fast moving consumer goods (FMCG) segment a run for their
money. And, if the Haridwar-based company is able to sustain the pace, it would soon
overtake other majors such as Dabur India, Emami and Marico in terms of sales and
profitability.
According to a rating rationale document by Brickwork Ratings, a credit rating agency,
Patanjali Ayurved clocked in a provisional turnover of Rs. 3,266.97 crore in the first 10
months of the current financial year. This is more than double of Rs. 1,587.51 crore reported
in the corresponding period of the previous financial year.
ET-Patanjali hit on FMCG biggies! But Dabur, Emami ride piggyback to notch up growth
"For the first time the FMCG sector is facing serious competition from the unlisted segment.
The growth there is fantastic. The margins are really coming and putting pressure on the
listed names, Nilesh Shah, MD, Kotak Mutual Fund,
Baba Ramdev's Patanjali has stolen midnight's sleep of one and all in the FMCGbusiness !
Patanjali hit on FMCG biggies! But Dabur, Emami ride piggyback to notch up growth
Swanand Kelkar, ED, Morgan Stanley Investment Management , believes there has been a
tectonic shift in consumer preferences towards Ayurveda in the most unlikely of places -
middle class India.
It is not as if demand is restricted only to the masses; the appeal for these products seems to
be from across income groups and social strata," he said.
Hindustan Unilever posted its slowest volume growth in six quarters in March at 4 per cent.
Patanjalis success may lead to a FMCG rejig
(HUL with its Ayush brand) and acquiring new ones (HUL
buying Indulekha and Emami buying Kesh King) to investing in brand building.
Nestle plans up to 25 products to take on rivals like Patanjali
Patanjali to launch more dairy items,enter cattle feed segment, it is aiming total turnover of
Rs 10,000 crore by next year.
Ramdev said that more than 250 products including flour, medicine, rice are sold on 'no-
profit no loss' which helps in rising prices of essential items.
analysts at IIFL, a domestic brokerage, are equally impressed: they believe that Patanjali's,
whose main product lines are ghee (30-35%), healthcare (20%) and toothpaste (8%),
revenues could hit Rs 20,000 crore by 2020.
A report by Brickworks Ratings estimates provisional sales for FY16 at 3,267 crore (for 10
months up to January 2016). Annualising, this would place Patanjali ahead of smaller listed
FMCG players such as Jyothy Labs (1,644 crore) and Emami (2,600 crore), and neck-and-
neck with GSK Consumer (4,500 crore) and Colgate Palmolive (4,100 crore) last fiscal. But
it is yet to break into the big league of Hindustan Unilever (31,000 crore), Godrej Consumer
(9,000 crore), Dabur India (8,450 crore), Nestle India (8,200 crore) and Marico Industries
(6,100 crore).