Patanjali Won’t List As It Plans To Turn Into A Non-Profit, Says Ramdev
Patanjali Ayurved Ltd., one of India’s fastest growing consumer goods makers, does not intend to list on stock exchanges as it plans to turn into a non-profit company.
“We will not compromise on the issue of equity because Patanjali is moving towards becoming a not-for-profit entity. That’s why we don’t want to list,” Yoga Guru Ramdev, founder of Patanjali Ayurved Ltd., said in an interview with BloombergQuint. “If any fund comes to provide debt, we are willing to consider that.”
The Economic Times reported last week that the investment arm of French luxury giant Louis Vuitton was looking to invest nearly $500 million in Patanjali.
India’s second-largest consumer goods maker set itself a revenue target of Rs 20,000 crore for the financial year 2017-18, nearly twice of what it earned in the previous year.
“We faced several challenges in this financial year, despite that we will do well. I don’t want to comment on whether we will meet the Rs 20,000 crore sales target at this point in time, we will talk about the same after March,” said Ramdev. But by the end of the next financial year, the company will surpass Hindustan Unilever’s turnover, he said.
“We will connect and expand to over 10,000 distributors across the country, hire over 20,000 sales force to take the products to retail levels. We are focusing on expanding our supply chain and reach along with many other initiatives to meet this objective, he said.
Patanjali partnered with eight leading e-commerce platforms including Flipkart, Amazon, Paytm Mall and Big Basket to sell its products online. “We can despatch up to 10 lakh products through the eight online platforms. The aim is to compete with the multinational companies and take the brand forward. We will have a turnover of over Rs 1000 crore from the online platforms,” Ramdev said.
Entering Newer Segments
Patanjali plans to enter the bottled water segment with ‘Divya Jal’. It is also looking to enter the dairy segment with Patanjali milk. “Under the brand Patanjali Paridhan, we will enter the textiles segment for women, kids and men fashion and traditional garments. These segments will have close to 3,000 products,” Ramdev said.
“Our dream is to make Patanjali a Rs 1 lakh crore brand in the next 3-5 years,” he said.