Yoga guru Ramdev aims to make Patanjali Ayurved’s FMCG products as the consumer’s first choice. Patanjali and Divya Pharmacy together have a turnover of ₹ 2,500 crore. Ramdev now plans to increase the availability of his FMCG products through outlets at railway stations and airports. In an interview to Business Line , Ramdev gave a brief overview of his three-year-old FMCG business and the road ahead. Excerpts:

Patanjali started selling FMCG products in the open market on March 1, 2012. What are your future plans?

When we began three years ago, our aim was to provide an alternative to multinational companies (MNCs). We did not have the manpower, professionals as well as an organised marketing structure to match the MNCs. Neither did we have much capital. Yet, we set up plants with capacities ranging from 50-100 tonnes.

During first year, we ran our plants for eight hours. In the second year, for 16 hours, and now in the third year, the plants are running for 24 hours. Our plan is to double the capacity of some plants and up to three times in a few others, such as those making our toothpaste, Dunt Kanti. Our toothpaste unit is operating 24 hours a day and is still not able to cope with the demand. We are also planning more variants, including a Sensodyne kind of product. We have already started making medicated Dunt Kanti, and will now expand the range for children, as also come out with a liquid mouth freshener.

We expect the demand for our shampoo, Keshkanti, to grow by three to five times. While the other companies make tall claims just on the basis of 20-25 per cent growth, we are not making any such claim, despite the possibility of higher growth.

We have three parameters for our products: world class quality, low price and 100 per cent profit for our charity. Our USP is purity and care. Another product, a face wash named ‘Saundarya’, is also expected to grow three to five times.

What next?

We plan to open outlets at railway stations and airports. Though we want to cover half the market, for the time being our effort is to make our products available in at least 25 per cent FMCG outlets across the country.

After achieving a turnover of over ₹2,500 crore, what is your next target?

We expect our turnover to increase to ₹ 5-10 thousand crore in a couple of years. But, I am not making any prediction. We do not follow others in announcing big targets. Our target is to reach the maximum number of people. It does not matter whether we achieve sales turnover of ₹ 1 crore or ₹ 1,000 crore, as all this will be re-invested in care.

With expansion, you will need more specific raw materials. What are your plans for that?

We have organisations in 650 districts and 5,000 tehsils, besides volunteers in over one lakh villages. We ask them to grow according to our requirements. So, there will be no shortage of raw material. We ensure economic self-help directly or indirectly to over one lakh people.

The government has brought two legislations for curbing black money abroad as well as domestically. It has also made PAN mandatory for transactions worth ₹1 lakh or more. How do you see these steps?

These are positives, but more needs to be done. The government seems committed to single transaction- based goods and services tax. We feel there is no transparency in cash transactions. Another important step is the Pradhan Mantri Jan Dhan Yojana, which is practical and will help in reducing cash payments.

How do you evaluate one year of the Narendra Modi government?

The world’s perception about India has changed. There is a feeling of pride. The country is being recognised as a fast-growing economy and a powerful nation. Within the country, the environment too has become positive. Yet, a lot more ground needs to be covered.

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