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Patanjali aims to clock Rs 3,000 crore from e-retail in first year

The company hopes to get a big chunk of its total revenue from e-commerce sales as growth in offline sales slows down. Focus on rural markets through products such as sanitary pads is another revenue stream Patanjali is banking on

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Patanjali aims to clock Rs 3,000 crore from e-retail in first year

As growth in sales of Patanjali Ayurved products slows down in the brick and mortar stores, the Baba Ramdev-led company is expecting overall sales revenue of Rs 3,000 crore in the first year from the newly launched online segment.

The company had last month announced the launch of its e-commerce platform www.patanjaliayurved.net. The home-grown FMCG companyhas also started selling its products online through leading online retailers such as Amazon, Flipkart, Bigbasket, Grofers and Paytm Mall.

"We are optimistic about the revenue from online platforms," Patanjali spokesperson SK Tijarawala said."We are expecting around Rs 3,000 crore in sales from the e-retail segment in the first year itself."

According to the company, it has created an ecosystem that helps it to process around 1 million orders every day.

Patanjali had set an ambitious target of doubling its revenue to Rs 20,000 crore in the current financial year. But the company is likely to miss the target by a huge margin. Sources close to the company says the rollout of GST is among the major reasons why its sales couldn't grow as much as expected.

The home-grown company is executing a four-pronged distribution and sales strategy to increase its pie in the country's FMCG market.  The company had started off with having only exclusive Patanjali Chikitsalay and Aarogya Kendras. Later, they launched exclusive supermarket stores – Patanjali Mega Stores, which are still very few in the country. Then on, the tie-ups with the big retail giants started and it entered the modern trade outlets – Big Bazaar, Reliance Fresh and others. The availability of the products in the open market, retail markets including pharmaceuticals and other general stores came in next, followed by the latest e-commerce platform.

Patanjali is also expecting that the soon-to-be-launched sanitary pads and diapers segment would give a much-needed push to its revenue. "We were already doing well in urban and semi-urban markets. With these two products, we could get a boost in rural sales as well as the penetration of sanitary pad segment is still not high in rural India," a Patanjali executive said.

The company is expanding into other sectors such as apparels and manufacturing of solar panels. In FY17, it had total revenue of Rs 10,561 crore, up from Rs 5,000 crore in FY16.

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