Edible oil firm Patanjali Foods has chalked out an aggressive growth plan to reach Rs 5,000 crore operational profit and over Rs 50,000 crore turnover in the next five years, banking on huge opportunity that it sees in FMCG business and oil palm plantations.
Patanjali Foods Ltd, erstwhile Ruchi Soya Industries, was acquired in September 2019 by Baba Ramdev-led Patanjali Group through a corporate insolvency resolution process.
In an interview with PTI, Ramdev said the company would like to grow its food and FMCG business as well as oil palm plantation vertical in a big way.
Patanjali Foods has prepared a vision document for the next five years to become the largest player in the food-FMCG business, he highlighted.
"Our target is to achieve more than Rs 5,000 crore profitability at EBIDTA level and over Rs 50,000 crore turnover in the next five years," Ramdev said.
During the full 2022-23 fiscal, the net profit rose to Rs 886.44 crore from Rs 806.30 crore in the preceding fiscal. The EBIDTA (earnings before interest, depreciation, tax and amortisation) stood at Rs 1,577 crore last fiscal.
Its total income increased to Rs 31,821.45 crore in the last fiscal, against Rs 24,284.38 crore in 2021-22.
Out of the total revenue, the turnover of the edible oil segment rose to Rs 25,253.33 crore last fiscal from Rs 22,468.64 crore in the previous year.
Food & FMCG segment revenue jumped nearly four-fold to Rs 6,218.08 crore in the 2022-23 fiscal, from Rs 1,683.24 crore in the previous year.
To achieve the five-year growth vision, Ramdev said the company has lined up the launch of many new products this fiscal.
"We will be launching white buffalo ghee, premium biscuits and cookies, premium dry fruits, spices and more nutraceutical products in the coming months," he outlined.
Ramdev highlighted that the share of food-FMCG business in overall revenues grew exponentially to 20 per cent last fiscal against 7 per cent in the previous year.
The food-FMCG business contributed 72 per cent of the total EBITDA posted by the company, he said.
Patanjali Food is operating one of the largest oil palm plantations in India with over 63,816 hectares under oil palm cultivation engaging with more than 39,000 farmers across nine states.
The company is also setting up its first oil mill at Pasighat in Arunachal Pradesh.
Patanjali Foods sells its products under various brands including Ruchi Gold, Mahakosh, Sunrich, Nutrela, Ruchi Star and Ruchi Sunlight.
Meanwhile, Ramdev also said promoters of Patanjali Foods would sell shares to institutional investors in June for dilution of a 6 per cent stake in order to meet minimum public shareholding norms of 25 per cent.
Earlier, the company had launched a follow-on-public offer (FPO) to increase public shareholdings.
Promoters currently have around 81 per cent stake in the company.