Kairali Ayurvedic Group eyes Rs 150 cr revenue by FY26 with organic growth

KAG, which has a debt-free balance sheet, has its entire focus on organic growth by preserving its heritage, in hospitality and in its products business, said its Executive Director Abhilash K Ramesh

Kairali Ayurvedic Group is aiming a consolidated revenue of Rs 150 crore by FY26, led by the expansion of its hospitality and Ayurveda treatment centres along with ramp-up of FMCG and OTC business, said its Executive Director Abhilash K Ramesh.

The 76-year-old Kairali Ayurvedic Group (KAG) is largely split into three divisions - Ayurveda Centers, Hospitality and Ayurvedic Products - and each is charting its own growth plans, both in domestic as well as foreign markets.

The group, which has a debt-free balance sheet, has its entire focus on organic growth by preserving its heritage, in hospitality and in its products business, he added.

"Post pandemic, we are looking at Rs 150 crore by FY26. That is nearly doubling what we are doing right now. Maybe we go better than we expect," Ramesh told PTI.

During the pandemic, like other hospitality firms, its revenue was also impacted but it gradually come out.

As part of its growth ambitions, KAG is also looking at foreign markets for the hospitality business and export opportunities for its ayurvedic and FMCG products under Kairali Ayurvedic Products Pvt Ltd (KAPPL).

Under the hospitality business, KAG operates a residential treatment centre. Presently, it operates one 68-acre Ayurvedic Healing village in Kerala and new centres on this pattern are coming up in Goa and Bali (Indonesia).

"We are targeting a topline revenue of approximately Rs 75 crore by 2026," he said. The current Ebitda in the segment is at 17 per cent and Kairali aims to improve this to 20 per cent.

"In hospitality, we are opening an asset in Goa in December this year," he said adding "We are looking at acquiring one more asset internationally, in Southeast Asia as well. So Bali is opening in 2026, where construction has started."  The Bali asset would be similar to its Kerala centre but would have more keys.

For Kairali Ayurvedic Centers (KAC), it has plans to add 20 new centres, taking the total number to 35.

"Post-pandemic, we plan to scale up to 35 centres under a COCO (Company Owned, Company Operated) model," said Ramesh adding that KAG is "targeting an Ebitda of 18 per cent," from this segment.

KAC is a chain for Kairali's Ayurvedic Treatments. It is present in 11 states and has plans to add more manpower to 250 hands as part of its expansion in domestic territories.

The group which opened its first Ayurveda centre in Delhi in 1989, has plans to expand into Andhra Pradesh, Telangana, Karnataka, Odisha, West Bengal and then to North Eastern states. It also plans to open a warehouse in Varanasi, which in turn will cater to the Eastern markets, said Ramesh.

"We should have centres in major cities and we are looking at acquiring centres internationally also in Dubai, New Zealand and Georgia. We are in talks for Lithuania, and multiple other countries as well in Western Europe as well as Eastern Europe," Ramesh added.

Besides, for the product business KAPPL, it is looking for over two-fold growth aiming to cross Rs 50 crore by next year from the present Rs 20 crore. It is now targeting the mass market with smaller SKUs besides for smaller tier III and below markets.

"On the product side itself, we will grow to about 1,000 odd distributors in India, expand and open up new markets. We are looking at opening a warehouse in Europe and opening one more warehouse in America. We had one pre-COVID," he said.

The company operates two Ayurvedic factories. One at Palakkad in Kerala and another at Pollachi in Tamil Nadu with a total built-up area of over 20,000 square feet manufacturing over 400 Ayurvedic products (medicine & herbal cosmetics).

The company is also the contract manufacturer to many leading product makers.