Patanjali Ayurved makes south India foray

Baba Ramdev-promoted Patanjali Ayurved Limited forayed into south India with the launch of over 100 ‘open market’ products, including cosmetics, toiletries, vitality and spices, in Andhra Pradesh on Monday.

“Our idea is to have a pan-India presence by the end of this year. We have already covered the northern market, and will be entering Karnataka tomorrow with plans to wrap up the entire southern region in a month’s time,” Balakrishna, managing director of Patanjali Ayurved, told mediapersons here.

The company’s products are cheaper by 30 per cent, as compared to the once being sold by multinationals (MNCs), because it sources raw materials directly from farmers and hence overhead costs are low, he said, adding that they were contemplating sourcing herbs and other ingredients from farmers down south in a phased manner.

Balakrishna said Patanjali Ayurved currently had a nationwide distribution network of 600, including 28 in Andhra Pradesh. In addition, Swadeshi Kendras would be opened in a bid to provide a basis of rural empowerment and self-sufficient system of life.

“Swadeshi Kendras, which are to be set up in villages having a population of more than 3,000, will work in the model of the existing Patanjali Chikitsalayas, which are the exclusive outlets of our products,” he said.

Adding that the move to enter the open market will turn the company into a major retail player, as well as pit it against the MNCs.

At present, Patanjali Ayurved has five units at Haridwar with a capacity to process 1,000 tonne a day. The units manufacture over 500 products, including 250 medicinal products.

“We are utilising only 30 per cent of our capacity right now. We may look at setting up manufacturing units in all the states with an investment of Rs 50 crore each, once we reach full-capacity utilisation,” Balakrishna said while refusing to draw any time line.