Patanjali going for foreign venture funds

 

 

The Haridwar-based company, Baba Ramdev-led Patanjali Ayurved is in talks with several foreign venture funds for investment in its ongoing projects like food processing units and manufacturing units. It has held several meetings with leading fund managers in Mumbai in last couple of months through financial services company UBS and IDFC.

Patanjali was in talks with French luxury group LVMH, and as per Patanjali’s policy, it would go with its own terms for such funding, which means no stake, no share and lower rate of interest.

The company’s terms are very simple that we would not allot any share or stake of Patanjali to them. They need money simply in the form of loan, which should have lower interest rate than that of bank. Moreover, Patanjali would accept “any loan or borrowing in Indian Rupee only”, as per its conditions.

LVMH, which is in the process of investing around Rs 5,000 crore, is evaluating the offers. Though going for foreign contribution Patanjali clarified that it would not dilute its icon and identity for which they are known, that is Swadeshi and India-made products.

In 2016-17, Patanjali had crossed a turnover of Rs 10,500 crore and aims a two-fold growth this fiscal. Besides FMCG (fast-moving consumer goods) segment, Patanjali is present in sectors such as education and healthcare.

 

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