Baba Ramdev to take on McDonald's, KFC and Subway next

Posted May 06, 2017

Patanjali ghee is the largest-selling product in the company. But, as the consumer base shifts to Patanjali brand, the company is confident to break the monopoly and is targetting revenue of Rs 20,000 crore in financial year 2017-18 (FY18).

Now operating primarily from Hardwar, Patanjali is looking to set up facilities at destinations such as Noida, Nagpur and Indore, among others, that would take his production capacity to Rs 60,000 crore in the next one year from Rs 35,000 crore now. This is 100% jump in revenues when compared with 2015-16 fiscal when they clocked Rs 5000 crore revenues.

Yoga guru Ramdev today asserted that "we would grow more than double this year". Patanjali's ayurvedic and herbal medicines business, Divya Yog Pharmacy earned Rs 870 crore and Patanjali Gramodyog Nyasm earned Rs 345 crores.

After creating a flutter in FMCG (fast-moving consumer goods) market, Baba Ramdev's Patanjali is planning to enter restaurant business and compete with multinational fast food giants like McDonald's Corp., Kentucky Fried Chicken Corp. and Subway Restaurants. The reported revenue of the company is said to be of Rs 10, 561 crore for the previous year.

The company is also exploring several new initiatives to open a chain of restaurants under the Patanjali brand. Honey is around Rs350 crore and would grow to Rs500-600 crore this year, " Ramdev said.

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In fact, he advised some Yoga exercises for officials from traditional FMCG brands in India, as he said, "Turnover figures will force MNCs to go for kapalbhati (a breathing exercise)". It has the capacity to make products worth 300 billion rupees and plans to double that next year, he said. We are working on the business plan and its branding.

Patanjali's oral brand Danta Kanti has recorded annual sales figures of Rs 940 crore.

Patanjali's desi (Indian) versus foreign products pitch has seen the company capturing sizeable market share.

While experts think that Patanjali Ayurved will be able to generate buzz initially, it won't probably be able to maintain a sustainable lead in the Quick Service Restaurants space, owing to the requirement of high capital expenditures.