Baba Ramdev is gathering ammunition to drive out his rivals as Patanjali leases 1.2 million sq ft for warehousing

Baba Ramdev’s Patanjali is becoming a major threat to FMCGs and MNCs, who are doing everything they can to stop his juggernaut.

However, it seems there is no stopping for Ramdev as his Patanjali leased 1.2 million sq ft of warehousing space across 20 cities.

Patanjali wants to double its revenues to Rs 10,000 crore by the end of March 2017. The Ayurveda brand is also working on enhancing its distribution network as it prepares for the roll out of the Goods and Services Tax (GST).

“In the last three months, the Baba Ramdev-backed FMCG firm has leased 1.2 million sq ft of modern warehousing space across 20 top cities and will ramp this up to over 2 million sq ft by end of fiscal. We reached turnover of around Rs 5,000 crore at March-end and should reach Rs 10,000 crore by fiscal-end,” Acharya Balkrishna, who is Ramdev's partner in the venture, told ET.

As GST is also expected to get passed in Rajya Sabha, Patanjali is also planning for the new tax regime.

“The entire supply chain planning is being done in-house, unlike FMCG firms that hire international consultants to draw up a plan. The company has hired a qualified team,” Balkrishna told ET, adding “the new manufacturing plants are likely to be in Vidharbha, Bundelkhand regions and Assam to tap markets in the Northeast.”

Patanjali is also looking to set up a plant on the Yamuna Expressway near Noida.

Patanjali started with a turnover of around Rs 450 crore in 2011-12 to Rs 2,000 crore in 2014-15 and more than doubling to Rs 5,000 crore at end of March 2016.
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