Future Group seals pact with Ramdev's Patanjali Ayurved, eyes Rs 1K cr biz

The Kishore-Biyani led Future Group on Friday tied up with Yoga guru Baba Ramdev's Patanjali Ayurved to sell the latter's products at the brick-and-mortar stores of the group's retail outlets across the country.

Future Group will be selling Patanjali products ranging from nutrition and supplements, grocery, medicines, cosmetics, etc.  at its popular supermarket chains Big Bazaar, KB's and EasyDay outlets.

Biyani said the group is eyeing Rs 1,000 crore business over a period of next 20 months from the sale of Patanjali products.

"In total we would have Rs 30-40 crore business (from Patanjali products) in a month from our stores and later on it would increase up to Rs 80 crore," Future Group CEO Kishore Biyani told reporters.

He said from Future Group's stores, the business of established FMCG player such as HUL is around Rs 1,300 crore to Rs 1,400 crore.

"I believe that Patanajali products could easily achieve that," Biyani added.

Patanjali Ayurved, located in Haridwar, has surpassed firms like Proctor and Gamble, Emami and Jyothy Labs with an annual revenue of over Rs 2,500 crore in the FY15 and is said to be the fastest growing consumer company, according to Investment Banking Company CLSA.

Interestingly, the face of Patanjali Ayurved Ramdev does not have any stake in the company whose market valuation goes up to Rs 14,000 crore.

Patanjali Ayurved is also looking at cashing in on the void made by the absence of Maggi by launching its instant noodles soon along with other products including, malted food and oral care items.

Announcing plans to enter noodles segment, Ramdev said: "Our effort is to promote swadeshi and give a tough fight to the MNCs. We would launch our noodles in market by October 15 and it would be available across India by the end of this month."

He said Patanjali is also planning to launch products like pasta, oats, juices, muesli soon and is targeting to achieve Rs 5,000 crore turnover this fiscal.

When asked about Future Group's growth prospects, Biyani said it would continue to have 20-25 per cent increase in revenue.

"We would have a group revenue of Rs 22,000 crore to 23,000 crore this fiscal," he said.

On association with Patanjali, he said the two companies are also considering to have production partnership.

"We are working on it. In the long-run we would jointly develop brands together," Biyani said adding Future Group is setting an office in Haridwar for distribution and marketing of Patanajali products.