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Ramdev's Patanjali Ayurved in talks with investment banks to raise Rs 1,000 crore

To meet its ambitious targets and expand its areas of interest, Baba Ramdev's Patanjali Ayurved Ltd is in talks with several investment banks to raise structured credit worth Rs 1,000 crore.

BT Online | September 22, 2017 | Updated 17:54 IST
Ramdev's Patanjali Ayurved in talks with investment banks to raise Rs 1,000 crore

To meet its ambitious targets and expand its areas of interest, Baba Ramdev's Patanjali Ayurved is in talks with several investment banks to raise structured credit worth Rs 1,000 crore. Patanjali had recently announced launch of its packaged drinking water 'Divya Jal' and there were reports of the homegrown business group making an entry in sectors like dairy and apparel.

According to a report in Livemint, one of the two investment banks is a Hyderabad-based boutique firm specializing in the consumer packaged goods segment, adding that the banks have been asked to approach both foreign and domestic funds.

"The discussions assume significance since this is for the first time since its founding in 2007 that Patanjali is exploring an equity-linked fund-raise option," the report quoted some insiders, as saying.

The investment banks have also been asked to explore possible investment structures that suit long-term capital needs of the group. Investment banks have approached several foreign and domestic structured credit funds with an initial proposal, it added.

The talks with banks to raise capital comes amid reports of Baba Ramdev's Patanjali Ayurved entering into various sectors. With growing demand of its products, Patanjali is also looking to open new manufacturing facility in several states.

Patanjali is also planning to launch 'swadeshi' line of clothes for men, women and children. Baba Ramdev's homegrown brand is likely to enter the branded apparels market this calendar year.

In July, the yoga guru entered the Rs 40,000 crore private security market. Patanjali has roped in retired Army and police officers to train recruits who will work as private security guards with Ramdev's Parakram Suraksha Private Limited.

Patanjali Ayurved also plans to enter the restaurant business dominated by McDonald's, Kentucky Fried Chicken and Subway in India. The new venture will leverage the popularity of the Patanjali brand in the already crowded restaurant market.

The turnover of Patanjali was Rs 10,561 crore in the previous fiscal year and the company aims to double its turnover this year.

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