After successfully flouting the follow-on public offer (FPO), post the acquisition of edible oil major Ruchi Soya Industries, Baba Ramdev-led Patanjali Group has set an ambitious target for itself. To list four group entities within the next five years.
The Haridwar-based business group aims to list its flagship entity Patanjali Ayurved, which, till recently, use to be its largest revenue contributor. Additionally, Patanjali Wellness, Patanjali Lifestyle and Patanjali Medicine will be listed by 2027, said Baba Ramdev. Through Patanjali Ayurved, the group markets its non-foods FMCG portfolio like its personal-care and home-care items.
Patanjali Wellness includes its integrated healthcare packages like holistic healthcare solutions through yoga, naturopathy and acupressure, among others. According to Baba Ramdev, the plan is to expand its hospital and wellness centres’ reach to 25,000 patients from 3,000 now. To achieve the same, it would soon turn to the franchise model to increase the number of such facilities exponentially and set up at least one wellness centre in each tehsil, from some 50 now.
While, Patanjali Medicine would include the group’s herbal-natural medicine portfolio and its flagship brand like the Divya Pharmacy. Set up in 1995, Divya Pharmacy is part of the group’s original entity - Patanjali Yogpeeth Trust.
Patanjali Lifestyle, currently a concept that will soon be turned into a formal entity, would include Patanjali’s Paridhan business (branded apparel), Patanjali Parivahan - a supply chain solutions business - and Patanjali Gramodyog Nyas (its cattle feed and medicines business). It also plans to acquire entities to augment this business.
“Patanjali Ayurved is our most iconic entity and is profitable. Its customer base and future projection are also conducive for an IPO (initial public offer). So, that will be listed first. Then, Patanjali Medicine, followed by Patanjali Wellness and Patanjali Lifestyle,” Baba Ramdev said in the sidelines of the event.
While the yoga guru has been vocal about listing his flagship entity Patanjali Ayurved for quite some time, the group is yet to list any of its entities, except Ruchi Soya (now Patanjali Foods) that it acquired in late-2019. However, according to people aware of the developments, the group management has already begun to reorganise its businesses in preparations to the upcoming IPOs.
For instance, in April, it initiated the process of rebranding Ruchi Soya to Patanjali Foods Ltd and, simultaneously, reorganised its FMCG portfolio. It placed 17 key portfolios under the renamed entity - Patanjali Foods. Apart from the edible oil portfolio, branded commodities like wheat flour and pulses, fruit juices & beverages, spices, jams & ketchup, cow ghee, honey, chawanprash, dry fruits and herbal-medicinal juices & extracts, came under Patanjali Foods.
While the non-foods portfolio, ayurvedic medicines and healthcare business were regained under the group’s original entities like Patanjali Ayurveda and Divya Pharmacy, among others.
Now, after successfully raising the money through FPO to pay off its debts - taking during the Ruchi Soya acquisition - Baba Ramdev is gung-ho about raising additional public money to expand his empire. While the size of these upcoming IPOs are yet to be finalised, according to him, the group will grow its turnover to a Rs 100,000 crore a year from Rs 40,000, in 5-7 seven years.
Additionally, availing the recently launched National Mission on Edible Oil scheme that encourages local production of import heavy crudes like palm oil to reduce India’s import bill, Patanjali begin palm oil plantation on 1.5 million acres of land in 55 districts spread across 11 states. Moreover, it is set to venture into the multi-level marketing business with nutraceuticals portfolio.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today