Yoga guru Baba Ramdev's Patanjali Ayurved is all set to sell its products in neighbouring countries like China, Myanmar and Bangladesh.
The company which gave multi-national companies a run for their money now planned for a massive expansion and to set up a production unit in Sahibganj, a district in Jharkhand.
Patanjali chose the Jharkhand district for starting its production unit as the Centre is looking to begin a multi-modal hub there with direct connectivity to neighbouring countries.
Ramdev's venture has reportedly started its discussion with Centre and Jharkhand regarding the project.
Patanjali is in talks with the Inland Waterways Authority of India and shipping minister Nitin Gadkari to use the Sahibganj multi-modal terminal for export of its products to East Asian countries like China, Myanmar, Bangladesh and others. By using the inland waterways, the company will save on its logistic costs for exports and the idea is to capture the East Asian market by competing on price and qualityA senior central government official
Confirming the report, a Patanjali spokesperson told The Live Mint that Sahibanj “is a strategic location and the company is in talks with the authorities.
We are in discussion with the Jharkhand government for the industrial development of the stateA Patanjali spokesperson
Sahibganj is the only district in the state where the Ganga flows.
Act East policy, the Centre's policy to concentrate on improving ties with the neighbouring countries is based in Sahibganj.
According to reports, Patanjali has started exporting its products to European countries like UK, Canada and to US, where a huge Indian are settled.
Patanjali spokesperson said the company has also got offers from the United Arab Emirates, Iran and Azerbaijan to export its products.
Pinaki Ranjan Mishra, partner and national leader at consultancy firm EY told Mint that the East Asia region is a huge market and cracking market there is comparatively easy.
Some of the Indian companies have done well in some of these markets. Also, these are relatively easier markets to crack, unlike the African region. Considering the government’s policy measures and stance on ASEAN (Association of Southeast Asian Nations), they may get some support as wellPinaki Ranjan Mishra
Mishra, meanwhile, added that he is doubtful about the exporting these products to China.
“It’s a bold move, and probably a bet that the company is taking. While Chinese people are fond of traditional things or products, they tend to prefer western companies for FMCG products,” Mishra said.
Abneesh Roy, analyst with Edelweiss Securities Ltd, agreed. “China is a tough market. No Indian FMCG companies have managed to crack that turf so far. There’s not much Indian expats in China who could be the first consumers for Patanjali products.”