Haridwar-based Patanjali group, which has acquired debt-ridden Ruchi Soya, expects to have a turnover of Rs 35,000-Rs 40,000 crore in the next financial year and to become the largest company in the FMCG sector in the coming years replacing market leader HUL, said Yoga Guru Ramdev.
The company is expected to register a joint turnover of up to Rs 25,000 crore in the current financial year, in which around Rs 12,000 crore is likely to be contributed by Patanjali group firms and Rs 13,000 crore may come from Ruchi Soya, he said.
After the acquisition of Ruchi Soya, Ramdev-promoted Patanjali expects threefold growth of the company and to become a major player in the edible oil category and take a lead in the domestic production of soyabean oil, sunflower oil and palm oil.
Besides, it would also reduce India's dependency on imports in the edible oil segment and save foreign exchange reserve through self-reliance on palm oil.
"This fiscal, Patanjali along with Ruchi Soya would have a turnover of around Rs 25,000 crore and expects to grow up to around Rs 35,000 crore-Rs 40,000 crore by the next fiscal year (FY21)," Ramdev said. He further said, "In next five years, we would have a turnover of around Rs 50,000 crore to Rs 1 lakh crore and will become the largest FMCG company, replacing HUL."
Hindustan Unilever Ltd (HUL), market leader in the FMCG segment, had reported a revenue of Rs 38,224 crore in 2018-19 and this is expected to go up further with the merger with GSK Healthcare's business.
When contacted, HUL spokesperson said, "As a policy, we do not comment on competition."
Patanjali had acquired Ruchi Soya in a corporate insolvency resolution process for around Rs 4,350 crore after contesting with Adani Group.
In the next two years, 25 per cent shares of Ruchi Soya will have to be liquidated as per the Securities and Exchange Board of India (Sebi) guidelines, said Ramdev.
The company expects a higher growth coming from Ruchi Soya, where it is aiming multi-fold growth and is introducing new products by extending its existing popular brand Nutrela.
"We will launch three new products under Nutrela brand targeting the health-conscious people and the people suffering from diseases such as heart ailments, cholesterol and high blood pressure," he said.
These products will include premium Oil Nutrela Gold, Nutrela Honey and Nutrela Protein Atta.
"We are expecting three times growth from Ruchi Soya in coming years," Ramdev said adding that it will also lessen the burden of import of edible oil from other countries and make India self-dependent in this sector.
Both Patanjali and Ruchi Soya would integrate its products by leveraging their strengths and would enhance the respective production capacity and increase market share, he added.
Patanjali will also continue to have Bollywood actress Madhuri Dixit as the brand ambassador for Ruchi Soya's Mahakosh range of products.
Moreover, on being asked whether there would be competition between some products of Ruchi Soya and Patanjali Ayurved, Ramdev said the products of Ruchi Soya would not clash with Patanjali's product and will add value to the customers.
With Ruchi Soya, it also aims to double its reach in the next five years to 50 crore people from the existing 25 crore.
"We have target to expand our reach to 50 crore people in the next five years," he said adding that the Patanjali group is now providing employment opportunities to around two lakh people and a similar number of farmers and would continue to add the numbers in its fold.
On being asked about the slowdown in the FMCG segment, Ramdev said it was a temporary phase, companies selling luxury products were mainly impacted and companies selling regular household consumption goods such as Patanjali Ayurved and Ruchi Soya were not impacted.
"Our turnover and brand equity have actually increased. Our market share has also increased," he said adding that there is no plans for listing of Patanjali Ayurved.