Patanjali Doesn’t Support FDI; Still Plans To Beat HUL In Yearly Revenues!
Patanjali is moving ahead at a rapid pace and have already taken their first steps to maximise their online presence and sales.
As we had reported earlier this month, Patanjali has initiated the big push towards online sales of their products. In a glittering ceremony attended by who’s who of Indian e-commerce, Patanjali officially announced their partnership with major brands like Paytm, Flipkart, Amazon and more.
While interacting with the media, Patanjali co-founder and Yoga guru Baba Ramdev shared several interesting insights into their thought-process regarding their future plans and their ambitions.
Here is a brief overview of the same:
Baba Ramdev: We Don’t Support FDI
In a very straightforward stand, Baba Ramdev has clearly stated that they don’t support Foreign Direct Investment or FDI in India. He said, “What will happen to small businessmen and Indian retailers for whom the business is their bread and butter..”
This statement is crucial, because of two reasons:
- Govt. of India has recently allowed 100% FDI in single-brand retail, which will allow foreign brands to seamlessly invest in Indian retail. Now, Baba Ramdev’s anti-FDI stand challenges Govt. of India’s stand on FDI.
- Louis Vuitton, the French fashion giant had recently expressed their interest in investing in Patanjali. Although no confirmation was received, critics of Patanjali reminded them of their ‘swadeshi’ approach before accepting international funds. Without naming anyone, Baba Ramdev has made it clear that they are against FDI and hence, they won’t enter into any partnership with foreign firms. However, he also made it clear that if any company wants to give ‘financial support’ they are open.
“As far Patanjali is concerned, we will not enter into (a) partnership with any international company. If someone wants to give financial support we will welcome it. But we don’t support foreign direct investment,”
Patanjali Will Beat HUL
Baba Ramdev has made it clear that they consider Hindustan Unilever as their primary competitor, and they wish to beat them in yearly revenues, very soon.
While Patanjali churned out revenues of Rs 10,561 crore last year, HUL sold Rs 34,487 crore worth of goods in the same period.
Baba said, “We have created (a) capacity of Rs 50,000 crore and we are racing ahead now. Our target is to beat HUL by next year,”
Analysts are saying that it will take Patanjali few years before they are able to beat FMCG veterans HUL.
Edelweiss Securities VP Abneesh Roy said,
“It’s not going to be easy to overtake HUL in its respective segments, especially with HUL also adding muscle to its own Ayurveda range of products now,”
HUL spokesperson said: “We have no comments to offer.”
Rs 1000 Crore Online Sales
Baba Ramdev has claimed that their own website: patanjaliayurved.net churned out revenues of Rs 10 crore in the month of December; and now, they are planning sales of Rs 1000 crore this year.
This declaration comes in the wake of their MoUs with leading e-commerce portals such as Flipkart, Paytm Mall, Amazon, Shopclues and more. However, Patanjali won’t discount their products, and the MRP would be the final price.
Baba Ramdev said, “We began a trial of online sales and did the highest online sales by any FMCG (fast-moving consumer goods) brand in a month,”
He also announced that Patanjali will soon launch their branded water bottle Divya Jal and apparel and footwear under the brand name Paridhan this year.
Besides, 20,000 new employees would be hired, and their offline retail presence would be massively expanded.
Baba Ramdev also expressed hope that Finance Minister will reduce GST rates in this upcoming budget.