Last year, Ministry of AYUSH and the Confederation of Indian Industry (CII) jointly organised an event ‘Ayurveda Conclave’. The programme highlighted the growth of Ayurveda in India and increasing acceptance around the world.
In the event, Union Minister for State for AYUSH Shripad Yesso Naik said that the market size of Ayurvedic products is expected to witness a three-fold increase from $2.5 billion to $8 billion is expected by 2022.
Besides, in the past few years, personal care ayurvedic products have become quite famous where many FMCG companies are keeping a close eye on the market.
Now, the Future Group is planning to join the bandwagon in the ayurvedic personal-care space and is already evaluating potential acquisition targets, group CEO Kishore Biyani told ET.
The group’s FMCG business — Future Consumer — will soon launch personal care and beauty products targeting the mass market.
“We are in talks for acquisitions in the ayurvedic beauty space. Valuations might be little high now, but we are exploring opportunities,” said Biyani.
The personal care market is expected to reach $ 20 billion by 2025, said a report released by Assocham in 2016. It then estimated the market size to be around $ 6.5 billion.
The Future Group is expected to see its FMCG business to touch Rs 3,500 crore in sales this fiscal, more than doubling from Rs 1,645 crore in FY17. The target is to expand the segment by 70-80 per cent in FY19, whereby revenue will be just shy of the billion dollar milestone.
The group has also decided to increase the proportion of Future Consumer brands in Future stores to 60 per cent from 20 per cent now, according to a report by Motilal Oswal.
Biyani admitted he is inspired by the growth of Patanjali and wants to become as big as the herbal-products major in the FMCG space.
In January this year, 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 FMCG products online.
