Patanjali Foods, a leading edible oil company, has set forth an ambitious roadmap for aggressive growth in the coming five years. With a strong belief in the vast potential of the FMCG sector and oil palm plantations, the company aims to achieve an operational profit of INR 5,000 crore and a turnover exceeding INR 50,000 crore. This strategic vision underscores Patanjali Foods’ commitment to capitalizing on lucrative opportunities in these areas to solidify its position in the market.
In September 2019, Patanjali Group, led by Baba Ramdev, successfully acquired Patanjali Foods Ltd, previously known as Ruchi Soya Industries. The acquisition was made through a corporate insolvency resolution process, further strengthening the presence and portfolio of the Patanjali Group in the industry.
During an interview, Ramdev expressed his aspirations to significantly expand Patanjali’s food and FMCG business, along with the oil palm plantation vertical. He emphasized the company’s strong intention to achieve substantial growth in these sectors, showcasing their commitment to making a significant impact and capturing significant market share.
Patanjali Foods has outlined a comprehensive vision document for the upcoming five years, with a clear objective of establishing itself as the leading player in the food-FMCG industry. This ambitious plan underscores the company’s determination to emerge as the foremost brand in the sector, showcasing their commitment to strategic growth and market dominance.
“Our target is to achieve more than INR 5,000 crore profitability at EBIDTA level and over INR 50,000 crore turnover in the next five years,” Ramdev said.
In the complete fiscal year of 2022-23, Patanjali Foods witnessed a notable increase in net profit, reaching INR 886.44 crore compared to INR 806.30 crore in the previous fiscal. Additionally, the EBIDTA (earnings before interest, depreciation, tax, and amortization) for the same period amounted to INR 1,577 crore, reflecting the company’s strong financial performance.
In the most recent fiscal year, Patanjali Foods recorded a significant surge in total income, reaching INR 31,821.45 crore as compared to INR 24,284.38 crore in the previous fiscal year of 2021-22. This substantial increase in revenue highlights the company’s successful growth and expansion in its operations during the stated period.
Among the overall revenue generated, the edible oil segment’s turnover experienced a notable increase, surging to INR 25,253.33 crore in the last fiscal year, as compared to INR 22,468.64 crore in the preceding year. This growth in turnover highlights the segment’s strong performance and reaffirms its significant contribution to the company’s overall financial success.
In the fiscal year 2022-23, the revenue from Patanjali Foods’ Food & FMCG segment witnessed an impressive surge, increasing almost four-fold to reach INR 6,218.08 crore. This substantial growth in revenue demonstrates the segment’s remarkable performance, showcasing its ability to capture market share and meet consumer demands effectively. In comparison, the revenue for the same segment in the previous year amounted to INR 1,683.24 crore.
To achieve the five-year growth vision, Ramdev said the company has lined up the launch of many new products this fiscal.
“We will be launching white buffalo ghee, premium biscuits and cookies, premium dry fruits, spices and more nutraceutical products in the coming months,” he outlined.
Ramdev emphasized that the proportion of revenue generated from the food-FMCG business experienced exponential growth, reaching 20% in the most recent fiscal year compared to 7% in the preceding year.
The food-FMCG business contributed 72 per cent of the total EBITDA posted by the company, he said.
Patanjali Food manages one of India’s largest oil palm plantations, spanning over 63,816 hectares dedicated to oil palm cultivation. The company collaborates with over 39,000 farmers across nine states in this endeavor.
Additionally, the company is in the process of establishing its inaugural oil mill in Pasighat, located in the state of Arunachal Pradesh.
Patanjali Foods markets its products under several brand names, such as Ruchi Gold, Mahakosh, Sunrich, Nutrela, Ruchi Star, and Ruchi Sunlight.
In the meantime, Ramdev also announced that the promoters of Patanjali Foods intend to sell shares to institutional investors in June. This move aims to dilute a 6% stake in the company to comply with the minimum public shareholding requirements of 25%.
Read More: Patanjali promoters set to dilute 6% stake to meet minimum shareholding norms
Previously, the company had initiated a follow-on public offer (FPO) to enhance public shareholdings.
At present, the promoters hold approximately 81% of the stake in the company.
