Yoga guru Baba Ramdev’s Patanjali Ayurved Ltd. is now looking to go international with his brand. Patnajali after its success in the Indian market wants to set up a production unit in Sahibganj in Jharkhand and the central government is also looking to make it a multi-modal hub with direct connectivity.
“Patanjali is in talks with the Inland Waterways Authority of India and shipping minister Nitin Gadkari to use the Sahibganj multi-modal terminal for export of its products to East Asian countries like China, Myanmar, Bangladesh and others. By using the inland waterways, the company will save on its logistic costs for exports and the idea is to capture the East Asian market by competing on price and quality,” said a senior central government official on condition of anonymity to the Mint.
Keeping in mind the government’s Act East Policy, which talks about the importance of India’s ties with the neighbouring countries in the Asia- Pacific, Patanjali is looking to expand its business overseas.
As reported in Mint Sahibanj “is a strategic location,” a spokesperson for Patanjali Ayurved said. “We are in discussion with the Jharkhand government for the industrial development of the state.” Sahibganj, which is the only district in Jharkhand where the Ganga flows, will give Patanjali direct access to Bangladesh and Myanmar.
According to the same report, the Sahibanj multi-modal terminal planned under the Ganga Jal Marg Vikas Project will have a landing capacity of 2.28 million tonnes per annum and has already got industries like cement, coal and retailers like Big Bazaar. Patanjali has been exporting to the foreign places with larger Indian populations like UK, Canada, US and Mauritius.
According to the Patanjali spokesperson, the company has, in the recent past, received offers from countries like the United Arab Emirates, Iran and Azerbaijan to retail its products in those markets but it hasn’t done so. The East Asia region is a huge market, said Pinaki Ranjan Mishra, partner and national leader at consultancy firm EY. “Some of the Indian companies have done well in some of these markets. Also, these are relatively easier markets to crack, unlike the African region. Considering the government’s policy measures and stance on ASEAN (Association of Southeast Asian Nations), they may get some support as well,” Mishra said to the Mint.
Mishra, however, was sceptical about its success in China. “It’s a bold move, and probably a bet that the company is taking. While Chinese people are fond of traditional things or products, they tend to prefer western companies for FMCG products.”
Ramdev has consistently maintained his stance on his business expansion in the Asian subcontinent. He has repeatedly spoken on public platform about India could improve its ties with China through yoga. Patanjali has also started two new production units in Assam which will focus on catering to the north eastern part of India and also to Bhutan which is India’s neighbour. Patanajali has a production partner in Nepal from whom they source their herbs.
In April 2016, Acharya Balkrishna, managing director of Patanjali Ayurved, said at a press conference that the company will spend more than Rs1,000 crore to set up new production units and Rs150 crore on a research and development facility. Patanjali earned Rs 5,000 crore in 2016 and have hopes of doubling that this year. It is also looking to expand its business in other parts of country like Maharashtra, Jammu and Kashmir, Uttar Pradesh and Madhya Pradesh apart from Uttarakhand, where they already have a factory in place, which was started 10 years ago.
