 "Patanjali")
Shares of Patanjali Foods hit a record high of Rs 1,558.15, up 3 per cent on the BSE in Wednesday's intraday trade, after the company said it is aiming to increase market share in foods segment through continued focus on biscuits and masala category.
The stock of the edible oil company surpassed its previous high of Rs 1,519.65 touched on June 26, 2020. In the past two months, it has rallied 24 per cent. Further, thus far in the financial year 2023-24, the stock price of Patanjali Foods has appreciated by 61 per cent.
The stock of the edible oil company surpassed its previous high of Rs 1,519.65 touched on June 26, 2020. In the past two months, it has rallied 24 per cent. Further, thus far in the financial year 2023-24, the stock price of Patanjali Foods has appreciated by 61 per cent.
Patanjali Foods is aiming at sales of Rs 1,000 crore in the masala business as it is eying the category as the next area of growth.
Baba Ramdev, non-executive director at Patanjali Foods, said on December 5 that the company was looking to build the biscuits and edible oil business, which would not only drive growth but build good margins. READ MORE
In its presentation, the company pointed out it was increasing its reach through new channels, which include modern trade, e-commerce, quick-commerce, and direct-to-consumer, along with expanding its geographies in South India.
The proportion of food business for Patanjali increased from 20 per cent to 28 per cent in the first half of current financial year 2023-24 (H1FY24). Product launches, focus on premiumisation, and expansion and diversification of distribution channels remain core focus areas for driving topline growth as well as margins ahead.
The company's unwavering commitment to premiumisation, coupled with its diverse product range, and expansive distribution channels has proven to be a driving force behind its impressive revenue and profitability growth. In a bid to broaden its global footprint, the company is ambitiously pursuing expansion in international markets, targeting a wider global presence.
Moreover, the company's proactive approach to revamping its Nutraceuticals business with innovative products and venturing into the Dry Fruits segment through strategic international partnerships showcases its forward-thinking strategy.
"Additionally, the company's Oil Palm Plantation project is making steady progress, evident from the increase in cultivated area and the successful collaboration with various state governments. Notably, the company's adoption of cutting-edge automation tools has streamlined its operations, facilitating seamless information flow across processes. This enhancement has empowered the organization to drive KPIs effectively across roles and responsibilities, yielding substantial benefits," Patanjali Foods said in its FY23 annual report.
Despite the extreme volatility experienced in FY23, particularly concerning edible oils and other commodity prices, the company has demonstrated resilience and remains poised for better performance in the future.
The prospects for FY24 are encouraging, with inflationary pressures easing, leading to an increase in disposable income. Moreover, there is a notable uptick in rural demand and steady urban demand, contributing to an overall positive outlook. These favorable market conditions bode well for the company's continued success and growth moving forward, the company said.
