COMPANIES

No Data Found

NEWS

No Data Found
Advertisement
Baba Ramdev's Patanjali Ayurveda plans to cash in on PM Modi's 'Act East Policy'; will export to China

Baba Ramdev's Patanjali Ayurveda plans to cash in on PM Modi's 'Act East Policy'; will export to China

Baba Ramdev's move to set up next unit in Sahibganj is calculated one as the Central government had recently planned to turn the district into a multi-modal hub with direct connectivity through roads, waterways and air with neighboring countries.

BusinessToday.In
  • New Delhi,
  • Updated Mar 16, 2017 2:14 PM IST
Baba Ramdev's Patanjali Ayurveda plans to cash in on PM Modi's 'Act East Policy'; will export to China

After giving a tough competition to multiple FMCG giants in India's domestic market, yoga guru Baba Ramdev's Patanjali Ayurveda is all set to tap East Asian markets by setting up a production unit in Sahibganj, a district in Jharkhand.

Baba Ramdev's move to set up next unit in Sahibganj is calculated one as the Central government had recently planned to turn the district into a multi-modal hub with direct connectivity through roads, waterways and air with neighboring countries.

Advertisement

ALSO READ: How 'evangelical' Baba Ramdev changed the playing field for ayurveda

The Mint reported that the Patanjali's planned overseas expansion is in line with the government's Act East policy, which emphasises ties with India's immediate neighborhood and in the Asia-Pacific.

"Patanjali is in talks with the Inland Waterways Authority of India and shipping minister Nitin Gadkari to use the Sahibganj multi-modal terminal for export of its products to East Asian countries like China, Myanmar, Bangladesh and others. By using the inland waterways, the company will save on its logistic costs for exports and the idea is to capture the East Asian market by competing on price and quality," The Mint quoted a senior central government official as saying.

"Sahibanj is a strategic location. We are in discussion with the Jharkhand government for the industrial development of the state," a spokesperson for Patanjali Ayurved said. Sahibganj will give Patanjali direct access to Bangladesh and Myanmar, the report said.

Advertisement

ALSO READ: Why Baba Ramdev's Patanjali should be ready to face tough competition ahead

This is the first time Patanjali is reaching out to consumers from East Asian countries. It has already set up its production units in Nepal and Bangladesh.

Last year in September, Baba Ramdev explained how Patanjali was tapping overseas markets and said, "We have already set up our units in Nepal and Bangladesh and our products have reached the Middle East and became popular in some of the countries, including Saudi Arabia."

"We should be concentrating in poor countries as the profits from those countries will be utilised for development work there itself. The entry to Pakistan and Afghanistan will mostly depend on the prevailing political situation, and if the situation is politically conducive, units will be set up there," he had said.

Advertisement

Baba Ramdev wants to end the dominance of multinational corporations that have for decades been capitalising on the country's market. In order to that, the Patanjali is also planning to set up a production unit on a 40-lakh square feet at Mihan in Nagpur, which will be bigger than its first unit at Haridwar and biggest in the country.

FIVE THINGS YOU NEED TO KNOW ABOUT PATANJALI

 

  • Patanjali manufactures 444 products including 45 types of cosmetic products and 30 types of food products. According to Patanjali, all the products manufactured by Patanjali are made from Ayurveda and natural components.
  • According to multinational brokerage company CLSA, Patanjali is the fastest growing fast-moving consumer company in India. It is valued at Rs 13,000 crore and is aiming to reach revenues of Rs 5,000 crore for the fiscal 2015-16.
  • The annual turnover of the company for the year 2014-15 increased to Rs 2500 crore as compared to previous turnovers of Rs 1200 crore in 2013-14, Rs 850 crore in 2012-13 and Rs 450 crore in 2011-12.
  • India's one of the largest retail companies, Future Group has tied up with Patanjali and sells about Rs 30 crore worth of the firm's products every month.Apart from this, Patanjali products are also available for direct sale at Reliance stores, Hypercity and Star Bazaar.
  • Patanjali Ayurved has a network of over 4,000 distributors, 10,000 stores and 100 Patanjali mega marts pan India.

 

Published on: Mar 16, 2017 2:01 PM IST
    Post a comment0