Ramdev's Patanjali Ayurved ropes in investment banks to raise whopping Rs 1,000 crore

New Delhi: Patanjali Ayurved, promoted by Baba Ramdev, has hired two investment banks in order to guide fund raising of Rs 1,000 crore.

As per media report, the banks have been asked to approach both foreign and domestic funds. Out of the two, one bank is Hyderabad-based boutique firm specialized in the consumer packaged goods segment.

Back in August, Yoga Guru's firm had announced its intention to borrow finance for its expansion plans. Structured Credit is expected to include- typical interest payment associated with debt, an equity stake in form of attached warrants or a conversion feature similar to that of a convertible bond.

The Haridwar-based company is in the process of setting up mega production units at several places, including Noida, Nagpur, and Indore, which would take its production capacity to Rs 60,000 crore from the existing Rs 35,000 crore.

Patanjali is also doubling its distribution network from 6,000 to 12,000 to reach more consumers across the country. This fiscal, the company is looking to enhance its focus on categories such as spices, pulses, vegetable oil, biscuits, confectionery and juices and add more products into these segments.

In FY17, Patanjali Ayurved contributed Rs 9,634 crore to its turnover, while Divya Pharmacy that manufactures ayurvedic medicines had clocked Rs 870 crore sales.

During the fiscal, Patanjali ghee had a business of Rs 1,467 crore and oral care brand Dant Kanti Rs 940 crore. Its personal care brand Keshkanti had sales of Rs 825 crore and herbal soap Rs 574 crore.