Patanjali is planning to raise its first project loans for INR10,000 Million to setup its manufacturing plant

India: The fast growing FMCG major Patanjali is planning to raise INR10,000 Million for its project loans with the increasing demand for its products. The company is said to have initiated talks with State Bank of India, Bank of Baroda, UCO Bank and few other banks in the country. The company is planning to seek long terms loans with a maturity period of 5-10 years.

The project finance would be used to setup manufacturing plants across the country. The company manufactures a large number of fast-moving consumer goods including shampoo, soaps, tooth paste and herbal and Ayurvedic products. It aims to double its production capacity to 2,000 tons a day by the end of 2016-17. Its new product line may include nutrition baby foods, noodles and urea free cattle feed. By 2017, the company is planning to setup noodles making plants in the National Capital Region, Madhya Pradesh, Karnataka and Andhra Pradesh.

According to TechSci Research, the company needs to focus on improving its supply chain with the obtained projects funds and should move to tier 2 cities to expand its nationwide presence and expand its customer base, which is in the initial stages. The company is planning to setup more manufacturing plants in Punjab, Jharkhand and West Bengal in the long term.

According to a recent report published by TechSci Research, “India Ready-to-Cook Food Market Forecast & Opportunities, 2019”, the RTC food products market in India is estimated to have touched US$ 120 million in 2014. The RTC food market has been segmented into dessert mixes, snack mixes and curry making enablers. Of these three product categories, dessert mixes outperformed other product segments in 2013 and are expected to continue their dominance through 2019. Currently, Northern states of India accounts for the largest revenue share in the country’s RTC market. Major reason for North India’s dominance include higher employment opportunities and rising disposable income level of people residing in this region. India’s RTC food market is dominated by a handful of well-known players such as ITC, MTR, Haldiram’s and Gits.