Mumbai: Patanjali, Baba Ramdev’s consumer based industrial enterprise for Ayurvedic consumer products, is looking for a fiscal loan of 1000 Crores for expansion.
Patanjali has narrowed its business gap with FMCG majors like Dabur, Marico and Godrej Consumer, by doubling its sales to 5000 crores in the past year. It is presently also giving competition to Hindustan Lever and Colgate.
The company has approached UCO Bank, Bank of Baroda and the State Bank of India, in an effort to launch new project. The Banks have not come back on loans to the company as yet.
“Long term project loans with 5-10 years maturity should serve our purposes. Project financing will increase as we expand our presence nation-wide, extending product lines. We require this as we are now setting up more plants across the country,” says company’s Managing Director, Acharya Balkrishna as reported in ET
Patanjali already has a loan facility, from both the SBI and the Punjab National bank. But this credit is not related to long term project loans. Banks of High stature like the ICICI Bank and the HDFC have also approached Patanjali.
“So far, we have been taking short term loans to meet our working capital requirements,” adds Balakrishna.
Baba Ramdev’s Patanjali Ayurved Ltd is assigned a BWR AA-/A1+ rating by ratings agency Brickwork Ratings for its bank loans of Rs.320 crore from the SBI.
This SBI loan to Patanjali is under two facilities—The first a fund-based cash credit of Rs.300 crore for long term. The second a non-fund based bank guarantee for short term, worth Rs.20 crore.
Analysts at India Infoline Ltd have estimated the company’s sales to grow from Rs.2,000 crore in financial year 2015 to Rs.20,000 crore by fiscal 2020. Patanjali will expand its network and enter new categories and also gains double digit market share in 10 of the 25 categories, says a live mint report.