Patanjali Foods eyes revenue of ₹1,500 crore from HPC business this year
Patanjali Foods aims to achieve ₹1,500 crore in revenue this year from its recently acquired Home and Personal Care (HPC) business. CEO Sanjeev Asthana is optimistic, projecting a 15% growth in HPC and a 3-4% growth in edible oil. The company plans to boost the non-oil segment’s share to 50% over five years and improve margins, targeting 6.5% next year.
Patanjali Foods is confident of achieving a revenue of ₹1,500 crore this year from the Home and Personal Care (HPC) business that it recently acquired from Patanjali Ayurved.
“The HPC portfolio will add a lot of heft to what we offer. All the categories are going fairly strong. Foods FMCG side is growing at 10%. On HPC, the target is that we’ll grow at 15%. The edible oil category is growing between 3-4% which is where we wanted to stay as well. Overall, we are feeling pretty positive,” said Patanjali Foods CEO, Sanjeev Asthana.
The oil business could have a run-rate of ₹250 crore in earnings before interest and tax over the next couple of quarters, he said.
Non-oil business, which did about ₹3,000 crore in revenue in 2023-24, contributes roughly 30% of the overall business. Asthana said the aim is to take the share to 50% over the next five years.
The company is not considering a demerger of the oil and non-oil businesses, he said.
It plans to add 1-1.5% every year to overall margin with the goal of achieving double-digit margins soon. The margin target for the next year is 6.5%.
He also highlighted that the recent promoter stake sale is likely the last, and the holding will not be reduced below 69%. “The promoters have largely divested all their profit making businesses into the listed entity. They need to clear their own debts and it’s very logical way. So, this (the stake sale) is the source of income to pay off the debt,” he added.
