Patanjali eyes Rs. 700cr deal: Second win in two months
According to reports, Baba Ramdev's Patanjali is set to bag a Rs. 700cr contract for mid-day meals in UP schools. This will mark another milestone for Patanjali which is now India's fastest-growing consumer product company. Just two months ago, Patanjali had won an exclusive contract to not just grow expensive Ayurvedic plants in Uttarakhand, but also fix their prices.
What is the much-talked about contract in Adityanath's state?
Currently, in UP, the mid-day meal scheme is being managed by 10 entities, including some NGOs. The government has invited tenders for the next phase till October. It is learnt Patanjali is lobbying hard in Delhi and in UP for the project. According to spokesman SK Tijarawala, the business decision is based on the company's belief in "the importance of healthy food".
Before mid-day meal, a massive a win for Patanjali
Uttarakhand has decided to open a single-window clearance for purchase and sale of all ayurvedic products in the state; Patanjali will fix prices for both. Not just ayurved, Uttarakhand has also agreed to hand over several eco-tourism spots in the state to Patanjali too. According to CM Trivendra Singh Rawat, Patanjali has created over 1,00,000 jobs in the state.
What's next for the multi-crore business?
Patanjali is in the midst of intense action. It's planning to launch a 'swadeshi' line of clothes next year. In private security, it has launched Parakrami Suraksha Private Ltd with the help of retired army and BSF officers. Ad guru Gullu Sen estimates India's ayurvedic-and-yoga-market at $490bn, and Ramdev is ruling it. Brokerage firm IIFL Associates predicts Patanjali's revenue would touch $3bn by 2020.
Ramdev's political might that boosted Patanjali's growth
The influential Ramdev, a long-time ally of PM Narendra Modi, is frequently seen in the company of powerful politicians and businessmen. But Tirajwala denies any links to BJP. The mid-day meal contract is a "business decision". However, it is noteworthy that in Uttarakhand, Patanjali's apparent closeness with the government comes after former Congress CM Vijay Bahuguna lodged several cases against Ramdev.
So will Ramdev beat Kohli this time?
Leaving aside the factors, Ramdev's image is at an all-time high. Last year, Virat Kohli appeared on TV once every eight minutes. But according to media analysts, Ramdev will easily beat the cricketer this year. Patanjali is a rocketship on an upward trajectory.
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