Patanjali Foods Plans To Build Export Portfolio Of FMCG, Health Products

Patanjali Foods plans on building a strong distribution led export portfolio of fast-moving consumer goods and fast moving health goods products and also will launch new products with high margin and high growth, the company said in a presentation on exchanges.

It also intends to focus on digital channels and ecommerce.

The company said in its presentation that it is adding soya snacks, ready-to-eat and ready-to-cook range of Nutrela chunks, reposition atta (wheat flour) and focus on premium range edible oils volumes, undertaking rebranding exercise and pricing strategy is being finalised keeping in line with market trends and expansion strategy.

It is also exploring new export markets for its biscuits, Nutrela Soya Products, nutraceuticals etc.. and Patanjali Foods has on boarded a team for the same. It has a target to reach Rs 250-300 crore of additional exports in the next 12 months.

It is also working towards strengthening its ecommerce sales across platforms to cater to the B2C (business-to-consumer) segment and has launched an app called ‘OrderMe’ to cater to changing consumer preferences.

Patanjali Foods has also set up a business unit for structured finance to leverage domestic and international trade flows, to reduce cost of funds and develop new margin streams.

On the new product development front, it is evaluating the launch of virgin palm oil, premium blended oil and also plans to introduce a premium biscuit range and premium products in the food space.

As it looks to grow its retail footprint, it is looking at growing institutional channels and has onboarded major bakeries, paint industry customers, state governments, army etc..

Currently, Patanjali Foods distributes its products through 457,788 retail outlets across India. It has also increased institutional edible oil sales to 100,000 tonnes.

In the foods business, it has 242 Products under eight categories with 536 stock keeping units.

The company entered the nutraceuticals and wellness segment in the first quarter of FY22 and expects it to grow at a rate of 19.8 per cent compound annual growth rate (CAGR) from FY20 to FY25. The market size projections for functional foods & beverages and dietary supplements are Rs 1.27 trillion by FY25, it said.

Its Nutrela-textured soya protein has a specialised distribution network of over 1,000 unique touch points across India.

Patanjali Foods aims to focus on backward integration by increasing overall palm plantation area. At present, out of the total allocated area of 602,000 hectares for oil palm plantations, 59,239 hectares is under cultivation.