Patanjali aims to increase the share of its food and FMCG business segments to 50% within the next 3-4 years. In the first half of FY24, these segments contributed around 28% to the overall sales, while edible oils accounted for the remaining 72%. The FMCG vertical includes segments such as foods, biscuits, Nutrela (Soya food), and nutraceuticals. Under the edible oils business, Patanjali focuses on edible oil refining, crushing, and oil palm plantation.
Patanjali’s CEO, Sanjeev Asthana, emphasised that the company’s focus is on achieving profitable growth rather than just increasing revenues. The steady-state blended margin for the food business is projected to range between 15% and 16%. The company is expected to generate revenue ranging between ₹36,000 crore and ₹38,000 crore in the fiscal year 2023-2024. For the entire Patanjali Group, the projected revenue is around ₹45,000 crore.
Patanjali faces challenges such as pricing pressures in the edible oils business. However, the company anticipates a return to normal margins of 2-4% in the remaining two quarters of the current year. Additionally, Patanjali sees significant growth potential in the FMCG business and oil palm plantations. To achieve its growth vision, the company plans to launch new products, including white buffalo ghee, premium biscuits and cookies, premium dry fruits, spices, and more nutraceutical products.
RTM Watch’s Take
Patanjali’s ambitious target of achieving a 50% share in the food and FMCG business within the next 3-4 years reflects its confidence in its product offerings and market potential. By focusing on profitable growth, the company aims to ensure long-term sustainability. Patanjali’s revenue projections and plans to launch new products demonstrate its commitment to innovation and capturing a larger market share. However, the company needs to address pricing pressures and continue to adapt to changing consumer preferences to achieve its targets successfully.
