Patanjali Clocks Whopping Rs 10,000 Cr Revenue, Becomes 3rd Largest FMCG Player; Will Soon Open ‘Nutritious Restaurants’
Patanjali has just declared emphatic victory over other traditional FMCG players, by clocking Rs 10,216 crore revenue in 2016-17. This is 100% jump in revenues when compared with 2015-16 fiscal when they clocked Rs 5000 crore revenues.
This way, Patanjali has become India’s 3rd largest FMCG company, beating traditional, and established companies such as Nestlé, Godrej Consumer, Britannia, and Dabur. (which haven’t declared financial results, but based on expectations, they will be behind Patanjali)
Only ITC and Unilever are now positioned above Patanjali, in terms of revenues of Rs 38,293 crore and Rs 30,783 crore respectively.
Announcing the results, Baba Ramdev challenged existing FMCG players by saying, “So far, FMCG has meant MNCs in India; we have broken that monopoly,” adding, “Global CEOs are sleeping peacefully saying Patanjali’s share market is small. But that is not true. We are leaders in many categories already..”
Patanjali’s Massive Sales Volume Shocks Analysts
FMCG analysts were in a shock, when they discovered 100% rise in revenues for Patanjali, in just 12 months. A jump from Rs 5000 crore revenues to Rs 10,216 crore in a year is no small feat, especially in the cut-throat FMCG sector.
And the way the revenues are exponentially increasing, it is clear that Patanjali is on to something big. In 2011-12, they clocked revenues of Rs 446 crore, which increased to Rs 2006 crore in 2014-15; Rs 5000 crore in 2015-16 and now, Rs 10,216 crore in 2016-17.
Here is a breakdown of revenues of their top selling products:
- Highest selling and most popular product was Patanjali Cow Ghee, which clocked Rs 1467 crore of sales
- Dant Kanti toothpaste generated sales of Rs 940 crore (holding 14% market share)
- Kesh Kanti shampoo generated sales of Rs 825 crore (holding 15% market share in domestic market)
- Herbal bathing soap Rs 574 crore
- Biscuits: Rs 380 crore
- Honey: Rs 335 crore (holding 50% market share)
- Washing Power: Rs 325 crore
- Atta: Rs 407 crore
- Beauty and Cosmetics: Rs 231 crore (Saundarya brand)
- Facewash: Rs 228 crore (grabbing 35% market share in India)
Their biggest and largest share of revenues came from Ayurvedic and Herbal medicine business, which clocked revenues of Rs 9346 crore; while their own brand: Divya Yog Pharmacy sold products worth Rs 870 crore. Their Gramodyog Nyas vertical, which deals with animal husbandry and economic and social uplift of villagers generated Rs 345 crore of business.
Baba Ramdev has declared that very soon, Patanjali will become India’s largest FMCG company. Their target is to generate Rs 20,000 crore of business next year.
In fact, he advised some Yoga exercises for officials from traditional FMCG brands in India, as he said, “Turnover figures will force MNCs to go for kapalbhati (a breathing exercise). Let’s end their monopoly…”
Patanjali Will Venture Into Restaurants
The bad news of KFCs and Subways and McDonald’s in India: Patanjali will now venture into the restaurant business as well, launching a series of nutritious restaurants, all over India.
Baba said, “We are working on the business plan and branding. So, don’t be surprised if you find one day that Patanjali restaurants are serving nutritious and safe food in your neighbourhood. We will venture into segment very soon..”
Patanjali will spend Rs 5,000 crore in various food parks in Madhya Pradesh, Maharashtra, Andhra Pradesh, Assam, and Uttar Pradesh. As per the announcements made, Patanjali’s unit in Madhya Pradesh will be used as an export hub for US, Canada, and the UK.
Patanjali is right now, singlehandedly, transforming Indian FMCG sector, and we are actually witnessing a revolution here.
If you are an avid user of Patanjali brand, then do you think they would be able to beat ITC and Unilever in India? Do let us know by commenting right here!