'Corporate mafia, political mafia targeting Patanjali': Swami Ramdev on Patanjali's strategy, SC order, and more

Yoga guru Swami Ramdev is as at ease in talking about revenues and profits, as he is in twisting his lithe and supple frame into an asana. Having taken sanyas in 1995, Ramdev, who prefers to be referred to as the Mentor and Spiritual Head of the Patanjali group, pulls no punches when it comes to taking on multinational companies in the FMCG space.

As part of that ambition, Patanjali Foods Ltd (erstwhile Ruchi Soya Ltd) has acquired the home and personal care business of Patanjali Ayurved Ltd for Rs 1,100 crore, and a 20-year licensing arrangement for a 3% turnover-based fee. The deal aims to strengthen the company’s position in the fast-moving consumer goods sector.

In an interaction with Business Today TV, Ramdev speaks about his plans to expand the Patanjali business empire in the years to come. Edited excerpts:

What is the rationale for the acquisition?

We are reaffirming our commitment to becoming a major player in the FMCG space. Two years ago, at the time of our FPO (follow-on public offer), we had set an ambitious five-year target of attaining a 50:50 split between the two major verticals—edible oils and FMCG. I am saying ambitious, because the share of FMCG in the total revenue was only 6-7% in FY22. In FY23, it rose to 19-20% and in the recent financial year, it went above 30%.

With the acquisition, we are consolidating the ‘Patanjali’ brand FMCG products portfolio. We see multiple synergies in terms of brand equity, product innovation, cost optimisation, infrastructure and operational efficiencies. This will also have a positive impact on market share, revenue and earnings.

Will you look at more acquisitions?

We will acquire domestic brands first, and later, foreign FMCG brands.

There is a trend towards ‘premiumisation’ in the FMCG space. How does Patanjali plan to maintain its market position given the strong competition from global majors?

Patanjali caters to all segments. We have products in the mass-, value- and premium segments as well. We have many products that command a premium in the market. Cow’s Ghee, for example, is among the market leaders and sells at a premium... and we hold nearly 70% [market share]. Nutrela is a market leader and has more than 40% of market share. The nutraceuticals range is again a premium offering by the company.

We launched a slew of premium products last year, including ragi biscuits, seven-grain biscuits, digestive biscuits, and a dry fruits range under the Nutrela brand. We have also introduced a new range of sports nutrition products under the ‘Nutrela Sports’ brand.

We are well connected with consumer aspirations and market trends and posing a very strong challenge to global firms.

Is it a challenge, given that global companies spend much more than you on R&D and marketing?

Our competition is not just with domestic companies, but directly with Unilever, Colgate, Nestlé, and others. Our resolve is to capture their market share. Our vision is to capture a dominant share of the market.

What are your long-term plans for the Patanjali group?

Our group turnover today is around `45,000 crore, and our goal is to take it to `1 lakh crore. We renamed Ruchi Soya as Patanjali Foods, and it has already become one of the largest food companies in the country. Our goal is to make it the largest foods company in the world.

We have very strong brands. In the edible oils segment, we are the second-largest company with nearly 10% market share. Our goal is to achieve a dominant market share in hair care, dental care, and skincare. We want to make Patanjali Foods the largest company in the home and personal care segment in India, and then globally. If a product like Colgate can be known worldwide, then why not Dant Kanti [Patanjali’s toothpaste brand]? Our products are 100% safe and affordable—why wouldn’t the world turn towards them?

Have high raw material costs impacted your margins?

During Covid-19, there was a lot of pressure, especially on bathing soap and dental care products. Now, it is relatively less. Our long-term strategy is to provide quality products at affordable prices.

India remains dependent on the import of edible oil and pulses. What are your plans in this space?

We want to make India self-sufficient in edible oils. Patanjali has oil palm plantations across 12 states in the country, with special focus on the North-east. The total allocated area is more than 700,000 hectares, on which rapid plantation is being carried out in partnership with farmers. We import nearly 5 million seed sprouts every year and grow them in our nurseries. Later, they are planted in the farmland of our partners. Over 50,000 farmers are being benefitted through this. Besides that, we will work on all traditional oils of India, including mustard, groundnut and coconut.

Our goal is to stop the outflow of Rs 2-3 lakh crore every year due to edible oil imports. This will strengthen the country’s economy, India’s currency, and make our farmers prosperous.

There have been signs of weakness in the rural economy...

The rural economy will get a boost. The government’s focus is on villages, the poor, labourers, and farmers. The way the government’s policies are progressing, the rural economy will receive a booster dose in the future.

Questions have been raised in the past about the manufacturing and quality of some of your products. What do you have to say on this?

Patanjali has 100% in-house manufacturing. None of our products have ever failed quality tests. There is a fake news factory in India that spreads lies and despises traditional heritage and knowledge. We will slowly overcome it.

Recently, questions were raised overseas about the quality of Indian food products. What is your take?

Not a single product from Patanjali has faced any of these issues that have been raised for others. Look, these are ‘market wars’. There is no need to worry about them.

Your products face criticism on social media…

There is a lot of false narrative targeted towards the quality we maintain. There is a targeted campaign against us.

Who is targeting you?

There is a corporate mafia, a political mafia, an intellectual mafia, a drug mafia—all these target us.

Even the Supreme Court has commented on this issue…

I must emphasise that the matter is sub-judice before the Supreme Court of India. Given the legal proceedings, it would be inappropriate for me to comment further on the issue. We must respect the judicial process and await the court’s decision.

A question that repeatedly comes up is the lack of clinical trials for ayurvedic products…

Patanjali Research Foundation is India’s first, and largest, fully integrated research foundation that conducts extensive research on ayurvedic medicines, products and practices. It has a diversified research portfolio and a substantial clinical testing pipeline. It has a robust research mechanism with around 500 scientists and researchers with global experience. It has been accredited for over 5,000 research protocols and published more than 300 research papers in international journals. But there is a mindset that has hatred towards Ayurveda... It is discrimination.

There was a ban in Uttarakhand…

We challenged the suspension order before the appellate authority, which formed a high-level committee. Based on the committee’s preliminary report, the government of Uttarakhand temporarily stayed the suspension. We are now awaiting the final report of the committee, which is expected soon. We remain optimistic about a favourable outcome.

On a related note, the issues in medical education entrance exams are in the headlines. Has it ever crossed your mind to work in this space?

Currently, we are granting bachelor’s and master’s degrees in ayurvedic medicine and surgery.

What you have said will become a reality, perhaps within one or two years when Patanjali establishes the country’s largest MBBS degree college and the world’s largest university.

My goal is to ensure that even a farmer’s child or a poor labourer’s child can study and become a good doctor, serving people rather than engaging in exploitation. This is our aim, and we are progressing towards it. Soon, you will see our super specialty hospital, where we will perform surgeries for liver, kidney, heart, and brain at nominal costs.

@szarabi