Patanjali Foods CEO Sanjeev Asthana Announces Rs 1,500 crore Capex Plan for Next 5 Years

Patanjali Foods Ltd, under the leadership of CEO Sanjeev Asthana, plans to invest up to Rs 1,500 crore over the next five years to expand its capital expenditure. The primary focus of this investment will be on scaling up its palm oil business.

The company, formerly known as Ruchi Soya Industries, aims to achieve a turnover between Rs 45,000 crore and Rs 50,000 crore in the next five years, driven by product diversification and an expanded distribution network.

Asthana stated, "Our estimate is that we will invest approximately Rs 1,200 crore to Rs 1,500 crore in capital expenditure over the next five years. The majority of this expenditure will take place in years four and five, while the rest will be allocated to the initial years. We have already planned sufficient capacity and capex for this purpose."

When questioned about the areas of investment, Asthana replied, "A significant portion will be allocated to our oil palm business." He further explained, "We currently have 64,000 hectares of oil palm plantations that are already yielding fruits, which forms a substantial part of our business. Additionally, we have committed to expanding our palm plantation to five lakh hectares under the National Mission on Edible Oil-Oil Palm in five northeastern states: Assam, Arunachal Pradesh, Mizoram, Tripura, and Nagaland. In South India, we are expanding in Andhra Pradesh, Telangana, and Karnataka, as well as other states such as Orissa, Chhattisgarh, and Gujarat. It is an extensive campaign that we are actively pursuing to promote growth."

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Regarding the turnover target, Asthana stated, "Currently, our turnover stands at over Rs 31,000 crore. Over the next five years, we expect it to reach between Rs 45,000 crore and Rs 50,000 crore."

To achieve this, the company will introduce a range of premium offerings in nutraceuticals, health biscuits, Nutrela millet-based cereals, and dry fruits, which are expected to contribute significantly to the five-year target.

"Our goal is for the premium products to contribute around 5% to 10% of our overall value offerings," Asthana added.

Furthermore, the company is expanding the scope of its Nutrela brand to align with its growth plans. Asthana explained, "Nutrela is a premium offering with various verticals. We are positioning it as a consumer-focused brand that caters to both value and premium segments."

In terms of biscuits, the company achieved a revenue of Rs 1,200 crore. Asthana expressed confidence in surpassing Rs 1,500 crore this year. He emphasized that a major portion of the revenue will come from the value segment, while a significant part will come from the premium segment, which offers healthier options without compromising Patanjali's core values.

Addressing the nutraceuticals segment, Asthana mentioned that existing products in the market are based on Western notions, whereas Patanjali is offering a vegetarian, organic, and bio-fermented alternative. He added, "Last year, we achieved sales of Rs 500 crore in the nutraceuticals segment, and we aim to continue expanding and growing."

With regards to the sales network, the company currently operates through 8,000-plus distributors, reaching around 1.5 million retail outlets directly. The company is also striving to establish an indirect reach of nearly a million outlets. In addition, Patanjali Ayurved provides access to over 5,000 outlets, and the company's products are available across various e-commerce platforms, modern trade stores, and direct-to-consumer channels, following its omnichannel strategy to strengthen its business, Asthana disclosed.

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