Companies & Sectors
Ramdev aiming to test waters in dairy, baby-care products
Yoga guru Ramdev is now aiming to test waters in dairy and baby-care products to expand Patanjali's 'swadeshi' consumer products portfolio that is expected to clock a turnover to Rs10,000 crore this fiscal.
In research and development (R&D), he's investing Rs150 crore in an upcoming institute.
"We will invest Rs1,000 crore to set up six processing facilities across the country. Besides, we will invest Rs150 crore in research and development," Ramdev told IANS.
He said the new product lines would include animal husbandry and feed, hand-woven 'khadi' (cotton) clothes and baby-care products, besides dairy products like milk, cheese and paneer.
He said the profits earned from baby-care business would be used for the betterment of the poor children. From the 'khadi' wear, the earnings will be used to strengthen 'khadi' weavers.
Patanjali Ayurved Ltd, a company co-founded by Ramdev along with his aide Acharya Bal Krishna in 2006, has sold fast moving consumer goods products worth Rs5,000 crore in 2015-16, a 150% growth from the previous year.
"In one year we are going to take its turnover to Rs10,000 crore," he said.
Supporting Rashtriya Swayamsevak Sangh's advocacy of cow protection, the yoga guru said the company is coming up in a bigger way for improving and conserving indigenous cow breeds.
"We are investing Rs500 crore in two-three years to multiply locally-bred cows through cow embryo transplantation technique. Our aim is basically to multiply the indigenous cows that will automatically increase the milk output and strengthen the dairy industry," said Ramdev.
A cow normally gives three to five litres of milk a day, whereas the indigenous cow produces 25 to 50 litres, he said.
Patanjali, which has 15,000 offline stores and is focusing on exports and improving online trading, is also launching cattle feed and supplements this year to boost the milk production.
"Now we are setting up our facilities where the land is either purchased at market price or gifted by an individual. We don't believe in getting land on lease from any government," he said.
The consumer products giant, which has a vast market among Ramdev's spiritual followers numbering millions in the country and overseas, is also aiming to launch bio-fertilisers, bio-pesticides and indigenous seeds, besides natural medicine and natural cosmetics.
Patanjali's food park in Padartha near Haridwar spreads over 170 acres. It caters to food, cosmetic, beverage and medicine segments. This has generated employment for over 10,000 locals.
Its second mega food processing facility, spread over 600 acres, is coming up at Nagpur in Maharashtra. Each Patanjali product has 'Made in Bharat' inscription on it.
Ramdev, whose mantra for success seems to be low-pricing of products ranging from eight to 10% profit margin, said setting up the country's first Vedic Education Board is also one of his top priorities.
As per the plan, Vedic Education Research Institute, run by Patanjali Yogapeeth, aims to allow its affiliated schools to offer a blend of the traditional 'gurukul' education along with modern syllabus.
"But there are too many hurdles to get clearances from the central government for the Vedic board approval," he said.
The success of Ramdev, the face of the company, has also attracted global attention.
Barack Obama's Kenyan relative and entrepreneur Jerry Okoko of Babford & Company, Inc. of Pittsburgh recently visited his food and herbal parks in Padartha.
He was accompanied by David Odiwuor Okeyo, the Homa Bay County executive of agriculture, livestock and fisheries.
"Okoko is planning to set up a food processing plant in Kenya with US assistance," Patanjali spokesperson K.K. Mishra said.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.



Indiabulls shares fall on reports of I-T search on company offices
Indiabulls Real Estate Ltd shares fell by almost 10% during the day following news reports that the Income Tax Department has conducted search across the country on the company and its promoter's offices. Following this, the BSE has sought a clarification from Indiabulls Real Estate.
At around 1.57pm, Indiabulls touched its days low at Rs86.20 on the BSE down 9.93% from Tuesday's close, while the 30-share benchmark Sensex was marginally down at 27,794. At one point, (1.01 pm) Indiabulls Ventures was down 9.93% and (1.57 pm) Indiabulls Housing Finance was down 7.84%.
According to a media reports, questions are being raised on the group restructuring and also on possible irregularities in sales tax. Quoting sources, a Hindi news channel said, "Around 1,000 I-T Officials are involved in the search of Indiabulls offices across the country."


Vegetables: The ‘Sultan’ of Inflation
The consumer price index (CPI) inflation jumped to 5.77% in June 2016 compared with 4.83% in March 2016. CPI inflation has now jumped by 94 basis points in a span of three months. For any country that aspires for inflation targeting this does not augur well. However hidden behind such number rhetoric, the fact is that the current episode of retail inflation trajectory is purely food driven-unlike earlier ones and herein lies the policy conundrum, says a research report.
State Bank of India (SBI) in its Ecowrap report says, "For the three month period, the weighted contribution of vegetables in overall CPI inflation has increased from 1% in March to 17% in June. Though it is not as frightening, as it was in FY14, when the contribution of vegetables increased to a staggering 38% in November 2013 from 7% in March 2013, the situation on the ground does look worrisome. Vegetables are thus the undoubted Sultan of CPI."
During June 2016, the prices of vegetables increased 14.7% with some specific commodities like potato, green chillies and tomato contributing 64% of such increase since March. Price of pulses continues to abate to 26.86% from a high of 46.08% in November 2015. 
The most satisfying aspect is perhaps the non-food component -core CPI part. Core CPI has maintained an average of 4.5% during January 2015 till June 2016. The weighted contribution of core CPI in headline has also remained stationary at 36% during the same period. Service CPI contribution has declined by 310 bps over the 12 month period ended June 2016. This has been made possible by significant disinflationary impetus in components like medical, education and even clothing. The report says, "The question is how far can we dis-inflate in items of necessary consumption (like education) in a country that boasts of reaping its demographic dividends?"
"Going forward, CPI numbers may continue to be around the current levels before start decelerating from August onwards. The 5% inflation target for January 2017 looks a little bit challenging as off now," it added.
Monsoon, which was a late starter this year picked its pace and after a deficit of 11% during June now fares at surplus of 2%. The turnaround was largely recorded in North-West and Central region. East and North-East India were in huge deficit and will remain in deficit mode as predicted by IMD. Though the monsoon will cover entire country by Wednesday, the huge deficit of 57% in Gujarat is a matter of worry. Of all the 36 sub-divisions, 30 sub-divisions received excess or normal rainfall, which covered almost 83% of the country, and only six sub-divisions received deficit or scanty rainfall. 
"Though the Kharif sowing was marginally less than the last year till now (406 lakh hectare till 8th July compared to 432 lakh hectare last year), it will definitely increase going forward. However, from an agricultural perspective, it is the rains in July and August - during the crucial vegetative and early reproductive growth stages of the crop - that really matters," SBI said in the note.
Regarding Index of Industrial Production (IIP), the numbers will continue to remain weak. The report says, "In terms of June quarter results, we foresee sectors such as Auto, IT, Pharma, FMCG, Cement to outperform other sectors in terms of revenue growth. Steel, though undergoing tough times, is likely to face easing pressure on pricing. A low interest rate for this capital intensive sector is only going to help its bottom line, but a positive firm trend in the current quarter appears to be away."
"Business cycle mirrors the timetable of the election cycle. Incumbent governments, use restrictive policies early in their elected tenure raising unemployment to reduce inflation. At a later date, as election approaches, the policy priorities change towards employment generation. In this respect, this highlights the time inconsistency behaviour of any Government. Hence don’t be surprised if future policies become more flexible and continue to be accommodative," the Ecowrap report concluded.
Meanwhile according to a report from IANS, prices of most vegetables and fruits crossed Rs100 a kg on Wednesday coupled with severe shortages and poor quality as a strike by commission agents crippled wholesale and retail markets in and around Mumbai.

Virtually no vegetable of daily use was available for less than Rs100 - or more than four times the regular rates - as supplies to the wholesale markets of Agriculture Produce Marketing Committee (APMC) at Vashi in Navi Mumbai dropped to a trickle on the third day of the indefinite strike.

Leading activist Mohan Gurnani, a former president of the powerful Federation of Associations of Maharashtra (FAM), said that against the daily average of 600 trucks, the supplies had fallen to less than 10% - or around 50 trucks a day since Tuesday.

"The agents have been left with no option. Though the strike has hit the farmers, commission agents (arhatiyas), retailers and consumers, the government move would actually benefit the big companies engaged in agro-marketing," Gurnani said.

The Maharashtra government promulgated an Ordinance on Tuesday amending the APMC Act, 1963, deregulating vegetables and fruits, to enable farmers get better remuneration and consumers cheaper produce.

Simultaneously, the government made efforts to procure adequate supplies from different parts of the state to cater to the demand in Mumbai, Thane, Navi Mumbai and other areas where prices have hit the roof.

Associations of hoteliers and restaurants toyed with the idea of dropping most vegetables from their menus if the situation failed to improve soon.

Non-vegetarians too were hit hard as prices of chicken, mutton, fish and eggs shot up: eggs from Rs50 to Rs100 a dozen.

The representatives of commission agents have been called for a meeting by the government in an effort to sort out their grievances, mainly pertaining to the move to stop them charging eight percent commission from farmers.

Since commission is the only source of their earnings, the 'arhatiyas' and wholesalers have gone on a protest strike.

In some parts of Mumbai, tomatoes sold at Rs180 a kg, cucumber and brinjals at Rs120 a kg, capsicum at Rs110 a kg, and cauliflowers and cabbages at Rs150 a kg.



sundararaman gopalakrishnan

10 months ago

The culprit is the "middle men/trader/baniya" that mark up exorbitantly,hoard vegetables/pulses etc.Govt.should introduce multi brand retail may be...


11 months ago

Action taken by Govt. Authority is in right direction 1st time ,removing Middleman -High Profiting Agency,things will take time to settle down,If govt. wish they can do Change this is a classic example in Democracy.Otherwise Mumbai is a place to Pay Unrealistic(10 times than actual) Price from Home Property to Vegetable,Jokingly.

Dahyabhai S Patel

11 months ago

Development literally means " the act or process of growing" and Vikas means in Gujarati " vadhvu' te" i.e. that which grows or increases. So, Modi's Vikas, with sab ka sath, sab ka vikas, every thing is growing, increasing except achchhe din!!! He never speaks the truth though he is sitting under the placard "satyamev jayate" while conducting cabinet meetings.


11 months ago

Well I think this country is meant only for rich people or corrupt people. Common men have nothing in it, except go on paying taxes for the comforts of Netas and the corrupt Businessmen, Builders etc---There is a class who serves and the other who enjoy their services. Only difference is that living for the common people has become lot more difficult in BJP regime than in Congress days.

Mahesh S Bhatt

11 months ago

Acche Din aa gaye.Munde Gayi Khadse Gaya Fadnavis Phadu veggies prices laa raha hai.

Have fun in rains Dal Roti khao prabhu gun gavoo lekin dal bhi import ho rahi hai. Again Mast Chill Hawa Pani Barish ke maze le lo Mahesh

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