Patanjali Foods to Invest Rs 1,500 Cr on Capex in Next 5 Years
Patanjali Foods Ltd, under the leadership of CEO Sanjeev Asthana, is set to make a substantial investment of up to Rs 1,500 crore in capital expenditure (Capex) over the next five years, as reported by PTI. Asthana has emphasized that the focus of this investment will be on expanding the company’s palm oil business.
Formerly known as Ruchi Soya Industries, Patanjali Foods aims to achieve a turnover ranging from Rs 45,000 crore to Rs 50,000 crore within the next five years. This ambitious target will be supported by the introduction of new products and an expanded distribution network.
Asthana revealed, “Our estimate is that we will invest approximately Rs 1,200 crore to Rs 1,500 crore in capital expenditure over five years. The majority of the expenditure will occur in the fourth and fifth years, with the remainder in the initial years. We have already laid out sufficient capacity and capex plans.” These comments were made in response to inquiries regarding the company’s investment strategies to meet its growth objectives.
When asked about the areas where the investments will be made, Asthana highlighted the significant investment in oil palm. He stated, “We already have 64,000 hectares of palm oil plantations that are yielding fruits. This is already a substantial business for us. Additionally, we have committed to cultivating an additional five lakh hectares of palm plantations in the northeast states of Assam, Arunachal Pradesh, Mizoram, Tripura, and Nagaland under the National Mission on Edible Oil-Oil Palm initiative.”
Regarding the expansion plans, Asthana further explained, “In southern India, we are already prominent in Andhra Pradesh, and now we are focusing on expanding our presence in Telangana and Karnataka. We are also targeting other states such as Orissa, Chhattisgarh, and Gujarat. It is a comprehensive campaign aimed at significant growth and expansion.”
In terms of turnover, Asthana revealed that the current figure stands at over Rs 31,000 crore and the company expects it to reach between Rs 45,000 crore and Rs 50,000 crore within the next five years. This growth will be driven in part by Patanjali’s new range of premium offerings, including nutraceuticals, health biscuits, Nutrela millet-based cereals, and dry fruits.
“Our goal is for 5% to 10% of our revenue to come from premium products, building upon our current value offerings,” stated Asthana. The company is also expanding the Nutrela brand to align with its growth plans. Asthana added, “Nutrela is a premium offering that encompasses various product verticals. We are establishing it as an umbrella brand with both value and premium offerings.”
Addressing the biscuit segment, Asthana mentioned that the company has achieved revenues of Rs 1,200 crore. He confidently stated, “This year, our target is upwards of Rs 1,500 crore. We are confident that we will achieve this objective. Going forward, a larger portion of our revenue will come from value products, while a significant portion will be derived from the premium segment. Our aim is to offer healthier options without compromising the principles that Patanjali stands for.”
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When discussing nutraceuticals, Asthana emphasized the differentiation of Patanjali’s products from the Western notions of nutraceuticals available in the market. He highlighted the company’s alternative approach, which is entirely vegetarian, organic, bio-fermented, and provides healthier choices to consumers. Asthana expressed satisfaction with the progress made thus far,
About Patanjali Foods:
Patanjali Foods Ltd, previously known as Ruchi Soya Industries Ltd, is an Indian company that specializes in producing consumer packaged foods.
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