Baba Ramdev led consumer products maker Patanjali Group aims to list four of its companies
Over the next five years, the Patanjali Group intends to IPO 4 of its group companies. These four firms are Patanjali Ayurveda, Patanjali Medicine, Patanjali Lifestyle, and Patanjali Wellness.
The Objective of the IPO
The objective of launching is to strive to reach a market capitalization of over Rs 500,000 crore. The second objective would be to compete with international rivals like Unilever and P&G with locally made goods.
Patanjali, was co-founded in 2006 by renowned yoga teacher Baba Ramdev. Acharya Balkrishna, his business partner, has an estimated net worth of $2.1 billion, Millions of people watch Baba Ramdev's TV yoga broadcasts, which are well-known. The firm has made an effort to oust consumer behemoths Hindustan Unilever, Colgate Palmolive (India), and Procter & Gamble Hygiene and Health Care from market dominance in the natural sector.
Ruchi Soya Industries FPO
In 2019, Patanjali Ayurveda acquired Ruchi Soya through a resolution procedure for Rs 4,350 crore and rebranded the company as Patanjali Foods. Ruchi Soya raised Rs 4,300 crore through its follow-on public offer (FPO) to pay down its bank and long-term borrowings this business is already a stock market listed company.
The main activities of Ruchi Soya Industries Ltd. are the processing of oilseeds and the refinement of crude oil for consumption. Seed Extraction, Vanaspati, Oils, Food Products, Wind Power Generation, and Others are some of the company's operating segments. Under names including Ruchi Gold, Mahakosh, Sunrich, Nutrela, Ruchi Star, and Ruchi Sunlight, Ruchi Soya markets its goods. Nearly Rs 50,000 crores are its net worth.
IPOs: Patanjali Ayurved, Patanjali Wellness and Patanjali Medicine and Patanjali Lifestyle
Patanjali Ayurved, headed by Baba Ramdev, sold its food retail division to the group's Ruchi Soya Industries Ltd. last month for Rs. 690 crores. Following this, the promoters' stake was reduced to 80.82%, and the public ownership was at 19.18%. According to SEBI regulations, the business must reduce the founders' ownership in order to reach the required minimum public shareholding of 25%. Patanjali has about three years to reduce the promoters' share to 75%.
On Wednesday, the share of Patanjali Foods hit the upper circuit of 5%. The stock price has increased by 30% over the last month and by 40% over the last six months.
The IPO of Patanjali Ayurved may be the first IPO. As Patanjali Ayurved is an established firm and its product range, reach, customer base, profitability, and future projection, make it most favorable from the perspective of an IPO.
Patanjali Ayurveda sells Indian medicines including tablets to promote immunity, culinary ingredients, and personal care product.
The next in line would be Patanjali Medicine, which also owns Divya Pharmacy, followed by Patanjali Wellness, which manages hospital and outpatient clinic networks in India. The objective of launching this IPO is to operate 25,000 beds under Patanjali Wellness. It has around 50 such centers and has plans to make it to 100, including IPD and OPD, and then gradually expand on the franchise model.
The last would be Patanjali Lifestyle. Clothing, transportation, cattle feed, and several other newly emerging businesses are all part of Patanjali Lifestyle.
Patanjali Revenues
The current revenue for Patanjali is Rs. 40,000 crores.
From Rs 8,778.03 crore in FY21 to Rs 9,241.27 crore in FY22, the company's FMCG business revenue rose.
In FY22 compared to FY21, its Ayurveda business generated revenues of approximately Rs 1,273.92 crore.
From Rs 9,810 crore in FY21 to Rs 10,664 crore in FY22, the company's total revenue grew.
Compared to FY21, Patanjali's net profit was down to Rs 740.38 crore from Rs 745.03 crore.
The Future Plans
By becoming the largest FMCG firm in the nation Patanjali will significantly contribute to making India a worldwide economic giant. They are putting up an action plan to get Patanjali Foods' networth to Rs 500,000 crore.
At the national level, they are developing a new indigenous and upright (Sattvik) Multi-Level Marketing model for Natural Nutraceuticals that will benefit the general public's health and prosperity and give accurate information about nutritious food alternatives.
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