Acharya Balkrishna-led Patanjali, India’s biggest FMCG company, has hinted that it might soon go public. Baba Ramdev has hinted that Patanjali may soon file for an Initial Public Offering (IPO). Ramdev was asked if he has plans to get the company listed on the stock market, to which he replied that people may hear some good news related to the development in a month’s time.
If the FMCG giant gets listed on the stock market, Indian investors would be able to participate in the enormous and extraordinary growth of the firm since it was founded in 2006. The FMCG company started as a small plant in Haridwar with a motto to promote ancient Ayurveda using modern technology.
With the help of Baba Ramdev’s popularity, the firm soon grew into producing all kind of FMCG products and created a dedicated customer base in India as well as abroad. The revenues grew 20 times in just five years and in 2016, the firm recorded a revenue of more than ₹10,500 crores, a number greater than the revenue of multinational FMCG giants like Colgate Palmolive, Godrej and ITC.
Earlier this year, Patanjali has announced that it may launch a messaging app to compete with WhatsApp. It also announced that it would launch its own fashion brand called Paridhan. Despite all the plans, Patanjali has witnessed the slowdown in the growth of the FMCG industry in the country. Last year, the company’s revenue did not grow at all and this year, the sales fell 10 per cent accounting to ₹8,148 crores in revenue.
An IPO can help Patanjali raise capital to support its aggressive expansion plans. Recently, DMart filed for an IPO in 2017 which became a great success. With a loyal userbase, Patanjali’s IPO could produce yielding results. What do you think? Will this IPO help Patanjali to become India’s top FMCG company?