Future Group shares rally up to 13% after it ties up with Ramdev's Patanjali

Shares of Future Group companies Future Retail, Future Consumer Enterprise and Future Lifestyle Fashion rallied up to 13% after the Kishore-Biyani led Future Group tied up with Yoga guru Baba Ramdev's Patanjali Ayurved to sell its products at the brick-and-mortar stores of the group's retail outlets across the country.

The stock of Future Retail ended flat after surging as much as 7.35 per cent at Rs 148.80, on the Bombay Stock Exchange (BSE).

Future Consumer Enterprise and Future Lifestyle Fashion closed the day 8.59 per cent and 1.03 per cent higher, respectively after hitting their intraday highs of Rs 18.50, up 13.49 per cent and Rs 81.95, up 5.40 per cent, respectively on the BSE.

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.

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.

(With inputs from Reuters)