Friday, December 1

Patanjali Goes Online, Aims Over Rs 1,000 Crore Sales in 2018

Baba Ramdev-led Patanjali Ayurved today announced its foray into e-commerce for its FMCG items, partnering major players in the space, including Amazon and Flipkart, and targeting over Rs 1,000 crore this year itself.

The Haridwar-based company said it has partnered eight players, which also include Grofers, Shopclues, BigBasket, 1mg, Paytm Mall and Netmeds, through which its entire range of products would be available online.

Besides, Patanjali said it will also expand into new product segments such as bottled water through brand ‘Divya Jal’ and apparels and footwear under the brand name ‘Paridhan’ this year.

“Online mechanism aims to provide convenient and efficient options along with extension of
traditional retail market”, said Baba Ramdev.

He further added: “We are targeting sales of over Rs 1,000 crore this year and would try to have more than that as we have just started now”.

The Haridwar-based company had started trial of online sales of its Swadeshi range of products, through its platform on trial basis and got encouraging results, Ramdev said.

“This was reflected in online sales which crossed Rs 10 crore during December itself, the highest online sales by any FMCG brand in a month,” he added.

Besides, Patanjali is also expanding its retail network in brick and mortar format and has plans to introduce more products in the value based small offering targeting rural customers.

“We have around 5,000 exclusive stores and would add more into that. We are going to launch a new loyalty card on January 26, named ‘Swadesh Samridhi’,” said Ramdev.

Patanjali has plans to connect around five crore people through its loyalty programme, which would also offer insured sum to the holders in case of death and disability, he said.

Ramdev further said: “Our products are sold at around 15 to 20 lakh kirana stores and 75 per cent are still left to be covered.

We would connect with them and this year we are targeting to cover 50 lakh kirana shops. Now we are looking rural coverage also.”

In view of its expansion plans, Patanjali is also increasing its manpower.

“We are going to recruit a new team of around 20,000 people, from the level of sales manager to zonal manager and regional manager,” he said, adding the company would also ramp up production capacity accordingly.

“We have created the annual production capacity worth Rs 50,000 crore, the highest in FMCG sector so far at Haridwar and Tejpur, Assam. Besides work is in progress at full speed at Noida, Nagpur and Indore as well,” said Ramdev.

When asked about exports, Ramdev said that from the next fiscal export would start once its export oriented unit at Miha in Nagpur becomes operational.

“This will facilitate export of Patanjali products to the UAE, the US, Canada, Europe, South America, African countries besides others.”

Recently, Patanjali had forayed into kids and adult diapers and affordable sanitary napkins segments.

Last month, it had also announced to venturing into solar equipment manufacturing. In 2016-17, it had crossed a turnover of Rs 10,500 crore and aims a two-fold growth this fiscal.