From the CEO's desk

Patanjali Foods scaling
heights year-after-year

Patanjali Foods Ltd. (“PFL”) has demonstrated strong performance for yet another financial year during FY24. The company has successfully accomplished its strategic course that was charted out at the beginning of the year and have achieved significant milestones.

PFL achieved the Minimum Public Shareholding, as per the regulatory requirements. The promoter shareholding has been diluted to 73.82% by successfully raising ₹2,354 Cr via the Offer for Sale (OFS) mechanism. The OFS received huge interest from not only the leading domestic investors but also the global stalwarts.

Fulfilling its strategic intent to increase the FMCG orientation, the company has increased the share its Food & FMCG segment further in total revenue from its operations to 30.1%. This is a significant achievement for the company since this is achieved within two years of stating the 5-year target of 50:50 split between FMCG & Edible Oils, back in FY22 when the share of FMCG was only 6.8%.

The company has been actively working towards capitalizing on the Premiumization wave across the FMCG sector and launched a slew of products in the last year. This includes the range of millets-based cereals and branded dry fruits under ‘Nutrela MaxxMillets’ and ‘Nutrela MaxxNuts’ brand. The new range of sports nutrition products under the revamped ‘Nutrela Sports’ and the health range of millets-based Ragi and 7-Grain biscuits were also launched. The market has been receiving the products very well. As part of the marketing and repositioning efforts, the company also onboarded the celebrity cricketer MS Dhoni as a brand ambassador for its flagship ‘Mahakosh’ and ‘Sunrich’ edible oil brands.

The success continues in the oil palm plantation operations. The company has now increased its area under cultivation to 74,376 hectares across 10 Indian states under its ambitious plan for contribution to edible security in the country, benefitting over 50,000 farmers. The total allocated area with the company stands at 6.5 lakh hectares.

Patanjali Foods will advance towards its goal of being one of the largest FMCG players in India and globally. In medium to longer term, the company has set out strategic initiatives for realizing the said objective:

  • Marketing and branding initiatives: The company is determined to expand the strength of its brands through numerous activities – including onboarding brand ambassadors and increased media spends.
  • Distribution Expansion: The company is expeditiously building its distribution reach across all the channels – direct retail reach, Patanjali franchise stores, modern retail, eCommerce, Quick Commerce, and exports.
  • Rapid expansion in plantation operations: The company continues to rapidly expand its area under cultivation, and will increase its contribution to self-sufficiency in edible oils for India
  • Strategic increase in portfolio: Continuing the momentum of HPC growth, the company will aim to increase its market share through consumer-centric innovations and portfolio expansion.
  • Bolstering international presence: The company has already started listing its products on global ecommerce websites and will continue to setup and enhance its branded products’ distribution in the international markets.

Despite the edible oil price volatilities in FY24, the Edible Oil segment achieved significant volume growth compared to the previous year. In FY25, the macro scenario looks more favourable with above normal monsoon expected to ease the food inflation. Conversely, real GDP growth is progressing consistently due to macroeconomic and financial stability. Domestic demand is increasing, supported by strong business confidence that surpasses that of many other global economies. These favourable market conditions are promising for the company's ongoing success and future growth.