PAL have very aggressive growth plans in future which is going to make competitors life very hard. PAL aims at turnover of over INR 10000 crores in 2016-17 more than double from the INR 5000 crores in the fiscal year 2015-16. PAL is also planning to invest INR 1000 crores in 2016 in setting up 5 to 6 new processing units in states like Assam, Maharashtra, MP, Rajasthan, Haryana and UP. The factories will come up at Drought hit areas like Vidarbha in Maharashtra and Bundelkhand region in UP & MP. 4 factories will be operational by the end of Q1 2017 which will generate more than 5 lacs jobs. They have plans to spend around INR 500 crores on cow protection, a research centre and setting up world class universities for Vedik education. PAL is planning to set up Cosmetic and Ayurvedic medicine factory in Birgunj, Nepal as well where they will manufacture various cosmetic and herbal products.
PAL plans to export honey and cosmetics to 10-12 countries including USA, UK, Canada, African and Arab countries. They are planning to expand its product base to Dairy Products and Yoga clothing. Patanjali Curd, Cheese and other dairy products will be soon in the Market.
PAL have plans to set up Swadeshi Kendras (centers) to provide a base for rural empowerment and self sufficient system and life. Swadeshi Kendras will be set up in villages having a population more than 3000 people and will work on the existing model of Patanjali Chikitsalayas and Arogya Kendras (Medical Centers) which will be the exclusive outlets of Patanjali Products.
PAL have plans to increase the availability of his FMCG products through outlets at Railway Stations and Airports.
To counter attack Multinationals who boasts of their Research and Developement, PAL is strengthening their own R & D capability by investing INR 100 crores on research and Development facility . They have entered into licensing agreements with Defence organization DRDO for transfer of Technology as well.
PAL is going to focus on beverages and health drinks, home care products, natural/organic cosmetics, health care products and natural food products. PAL has around 30 products in its portfolio including a health drink, energy bar, cow milk powder, digestive biscuits, fairness cream, anti aging cream and moisturizing cream.
Baba Ramdev’s plan to make PAL the country’s largest FMCG company is attracting the attention of private Equity and venture capital fund companies. They have received expressions of interest from Multiple investors including US based General Atlantic.
In Conclusion, All these multinationals company’s are keeping a watch on Patanjali’s Success momentum and PAL has to be careful in terms of claims/benefits mentioned on their products. If the products do not deliver what it promised, it will end up occupying the shelf space. Sometime, Over aggression can become Destruction and lose the focus (Keep in Mind, the classic example of KF airlines!!!). It is heartening to see that Indian consumers are returning to their roots and increasingly buying natural products. A lot would depend upon the choices of launches in near future but more competition would mean that Indian consumers get more choices in the end