Patanjali has announced its entry into the dairy products segment, with cow milk, curd, buttermilk and cheese. Yoga guru Baba Ramdev’s company expects the category to generate around Rs 1,000 crore revenue by 2020. It is aiming to achieve Rs 500 crore dairy revenue by end of this fiscal, Baba Ramdev said at a press conference Thursday.
Patanjali has tied up with around 56,000 retailers and vendors to supply milk across Delhi-NCR, Mumbai, Pune and Rajasthan and expects to produce 10 lakh litres of cow milk every day in 2019-20. It claimed to have produced 4 lakh litres on the very first day of operations, saying it will soon start selling dairy products in tetrapacks, along with flavoured milk.
Patanjali will procure the milk from around 1 lakh associate farmers and said it will provide employment to around 5 lakh by next year through launches. The milk, according to Patanjali, will be sold for Rs 40 per litre as opposed to the Rs 42 market price. The company is also foraying into frozen greens such as peas, sweet corn, mixed vegetables and French fries that will compete directly with giants like McCain by pricing them at half that of its competition. Packaged drinking water will be available in pack size of 250 ml, 500 ml, 1litre, 2 litres, 5 litres and 20 litres. Haridwar-based Patanjali has plans to open 100 retail stores for apparel by March 2019 and starts the rollout Diwali. The Ayurveda company also launched a raft of other products, including urea-free cattle feed, packaged drinking water Divya Jal and solar panel production.
For a company that started as a small pharmacy in 1997, Patanjali has launched more than two dozen mainstream FMCG products — from toothpaste, shampoos and other personal care products to modern convenience foods such as cornflakes and instant noodles. Annual sales have doubled every year since 2013 to touch Rs 10,500 crore. Patanjali Ayurveda’s growth faltered during the past 12 months as rivals, mostly multinationals, launched natural and herbal products to counter its challenge. Sales volumes grew 7% during October-March 2018 and 22% in April-September 2017, according to data from Kantar Worldpanel, a global consumer research firm. That’s a sharp fall from 52% growth in October-March 2017 and 49% during April-September 2016.