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PATANJALI

Patanjali group eyes Rs 25k crore turnover in FY20

Patanjali group will register a joint turnover of Rs 25,000 crore in the current fiscal ending March 2020, in which around Rs 12,000 crore would be contributed by Patanjali group firms and Rs 13,000 crore will come from Ruchi Soya, which was acquired recently by Patanjali.

The aim is to push HUL to No 2 in five years: Ramdev

Patanjali will touch Rs 25,000 crore in revenue by the end of the current fiscal year.

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  • Patanjali Ayurved has deposited its equity portion in a State Bank of India (SBI) escrow account, in what is the final step before it completes payments for the acquisition of edible oil maker Ruchi Soya.

    A three-member NCLAT bench headed by Chairperson Justice S J Mukhopadhaya extended the deadline to December 23. Earlier, on November 20, the appellate tribunal had extended the deadline till December 16 for implementation of the resolution plan for Ruchi Soya. The original deadline for implementation of the resolution plan was November 21.

    Proposed bans on single-use plastic and on sale of junk foods may prompt FMCG companies to change.

    French luxury giant LMVH had in the past said it is keen to pick up equity in Patanjali. The ayurveda products maker had forced global and local players to step up their portfolio in this space as it became a Rs 10,000-crore-plus company in just about a decade. However, Patanjali has been losing ground in recent times.

    As much as Rs 3,700 crore of the acquisition cost was supposed to have been funded by bank loans with Patanjali infusing Rs 600 crore from its own internal accruals. Bankers are also wary of funding the home-grown consumer goods company after rating downgrades by rating agencies Care and ICRA in October.

    NCLT had admitted the insolvency plea filed by two lead financial creditors Standard Chartered Bank and DBS Bank. However, later the Singapore-based DBS Bank became dissenting creditor and approached NCLAT challenging the distribution of proceeds from the bid submitted by Baba Ramdev-led Patanjali Ayurveda.

    The company had reported a revenue of Rs 937 crore and Rs 1,576 crore in June quarter and September quarter of 2018-19, respectively. "The most remarkable and noticeable thing is that Patanjali Ayurved has made a comeback. It has achieved the highest ever H1 figure in its history," Patanjali spokesperson S K Tijarawala told.

    "The company has already secured required total debt from a consortium of banks led by State Bank of India," Patanjali Ayurved Managing Director Acharya Balkrishna said in a statement. Patanjali also said it has got loans of Rs 1,200 crore from SBI, Rs 700 crore from Punjab National Bank, Rs 600 crore from Union Bank of India.

    Refuting reports that Patanjali Ayurved was finding it tough to raise fresh loans of Rs 4,000 crore following a downgrade by a ratings agency, Patanjali Ayurved chief executive Acharya Balkrishna said the downgrade by CARE was based on factors which had no relation to corporate guarantee not being offered by Patanjali.

    ​Care Ratings Ltd. downgraded Patanjali’s long-term bank facilities to A- from A+.

    DBS Bank has extended financial debt amounting to USD 50 million (around Rs 243 crore) to Ruchi Soya and had secured as a sole first charge on fixed assets of the debt-ridden firm at Baran, Guna, Daloda, Gadarwara, Mumbai and Kandla. During the insolvency proceedings, RP had admitted claims of Rs 242.96 crore of DBS Bank.

    So why, then, this investment pessimism? First, consumer behaviour and preferences are showing a marked shift.

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