Exclusive-Swami Ramdev: Patanjali Foods Happy With 4-5% Margins

In an exclusive interview with Business Today TV's Managing Editor Siddharth Zarabi, Yoga Guru Swami Ramdev discusses the economic dynamics and ethical challenges within the agriculture and FMCG sectors. Swami Ramdev emphasizes that Patanjali Foods is content with modest 3-5% margins, contrasting sharply with other FMCG giants struggling to sustain operations below 10-12% margins. He highlights the disparity where the agriculture sector operates on a slim 2-5% margin, while corporate entities target much higher 10-20% EBITDA margins, often resorting to unethical practices that undermine farmer trust. Patanjali's pioneering success with its food park. Beyond food, Patanjali has diversified into higher-margin segments like dental and hair care skin care, achieving margins up to 30%. Swami Ramdev underscores the integration of food, FMCG, personal care, and home care sectors, enabling effective and sustainable operations. However, he acknowledges the challenges of profitability in the low-margin food business, necessitating careful capital management and cost control. Swami Ramdev and Acharya Balkrishna lead by example, forgoing salaries to minimize management costs and eliminate waste, contributing to the success of the world's largest food park. With robust support from national and international investors, Patanjali currently holds a market cap of approximately Rupees 50,000-60,000 crore. Looking ahead, Swami Ramdev envisions Patanjali becoming a powerhouse with a market cap of 1 lakh crore and ultimately 5 lakh crore, aiming to empower farmers, enrich India's economy, and promote consumer health through affordable, high-quality products. As health concerns gain prominence, he stresses the need for integrated solutions spanning agriculture to economic sustainability.