Yoga guru Baba Ramdev-led Patanjali Ayurved announced its partnership with several e-commerce companies, including Paytm, Flipkart, Amazon, and 1mg today and took its online sales mainstream. The e-commerce websites will sell Pantanjali’s products online.
Patanjali Ayurved said in a statement that its e-commerce platform patanjaliayurved.net yielded good dividend and response at trial stage itself, with online sales crossing Rs 10 crore mark in December.
“Online mechanism aims to provide convenient and efficient option along with an extension of the traditional retail market,” said Ramdev.
Patanjali also announced it has an annual production capacity of Rs 50,000 crore. According to the company, it is the highest in the FMCG (fast-moving consumer goods) sector so far.
The announcement comes a week after Patanjali Ayurved announced that it is planning to tie-up with all the major Indian online retailers such as Amazon, Flipkart, Paytm Mall, 1MG, Bigbasket, Grofers, ShopClues and Snapdeal to push online sales.
“We are now going into the massive way. Now, we would have an organised and systematic agreement with the players to place our all product online, so that it could reach to customers to the endpoint,” said Patanjali spokesperson S K Tijarawal had then told to PTI.
According to media reports, French luxury group LVMH Moet Hennessy-Louis Vuitton is also eyeing to invest a whopping $ 500 million (Rs 3,250 crore) in Patanjali Ayurveda.
Patanjali spokesperson SK Gupta Tijarawala through his Twitter account said that “Acharya Balkrishna (MD of Patanjali) has said that just as we use foreign technology for our development, we do not hesitate to use foreign funds for the benefit of our country, but we will take it on our own terms. We will not give share/stake.”
Set up in 2006, the company is eyeing the global market through partnerships with e-commerce companies. The company plans to take its product portfolio to the US, UK, and some other countries.
In September 2017, it had hired two investment banks to raise structured credit worth Rs 1,000 crore to finance its expansion plans.
Patanjali also announced its foray into the branded apparel space with its “swadeshi” line of clothes for men, women, and children, which will be available across 250 exclusive retail outlets.
The company closed the last financial year (2016-17) with Rs 10,000 crores in sales and claimed as the second largest homegrown consumer goods company, after ITC.