Growing through Diversification
Patanjali Foods Limited (Formerly Ruchi Soya Industries Limited)
started as a manufacturer and marketer of healthy edible oils. We pioneered soya foods and
significantly expanded our product portfolio over the years."
Dear Stakeholders, We proudly present the first integrated annual
report for Patanjali Foods Limited. We're excited to share our Company's incredible
journey in creating value for our stakeholders over the past year. e year 2023 has
witnessed a dynamic economic landscape, both globally and domestically. Despite the recent
pandemic's challenges, Indian economy has demonstrated resilience and adaptability, paving
the way for renewed growth opportunities.
India has been at the forefront of this economic resurgence, with
robust GDP growth and encouraging investment inflows. e FMCG sector is one of the most
crucial contributors to India's economy. It experienced several challenges during the year
under review owing to high inflation, slowing rural demand and rising interest rates.
However, the changing lifestyles and increasing awareness of health and
wellness among consumers will likely increase the demand for high-quality and healthy
products. As an FMCG player, we closely monitored these trends and performed exceptionally
well despite various challenges. One of our key accomplishments during the year is
generating a revenue of over _31,000 crores with an annual growth of 31% and a profit
after tax (PAT) of _886 crores.
Expanding Beyond Edible Oils
PFL (Formerly known as Ruchi Soya) started as a manufacturer and
marketer of healthy edible oils. We pioneered soya foods and have significantly expanded
our product portfolio. Edible oils and soya foods remain an integral part of our business
segments today as we have diversified our offerings to a diverse range of
consumer-packaged goods, biscuits, cookies, noodles, cow ghee, honey, and other items,
along with range of nutraceutical products catering to a wide spectrum of consumer needs.
is approach has helped us broaden our offerings to reach several high-growth segments.
Strong Manufacturing and Distribution Network
Strong distribution and manufacturing capabilities are essential to
establishing a successful FMCG company. At PFL, we take immense pride in our extensive
network that spans the country's length and breadth. With 25+ strategically located
manufacturing units, we have optimised our production and supply chain, resulting in
seamless product delivery to our customers.
To complement our manufacturing strength, we have built an impressive
distribution infrastructure. With 7,500+ distributors, 100+ sales depots, 130+ super
distributors and a staggering 1.5 million+ retail locations spread across India, our
products are within the easy reach of consumers from every corner of the nation.
Strategic Capex and Global Expansion
We recently announced a significant capital expenditure of _421 crores
to fortify our growth. Over the next five years, we will deploy this strategic investment
to enhance our Oil Palm Plantation business. By augmenting this segment's capacity, we aim
to strengthen our product offerings and capture a larger market share, propelling us
towards greater heights.
While consolidating our presence domestically, we are also committed to
expanding geographically in the international markets. With a presence in 33 countries,
exports substantially grew during the year under review. is achievement demonstrates the
global acceptance of Patanjali Foods' products and the trust placed in our brand.
Embracing Innovation for Profitable Growth
Innovation has always been central to our business ethos. We are always
coming up with new products to launch, which can provide us with higher margins. is
strategic move diversifies our product range and opens avenues for increasing
profitability, propelling us towards sustainable growth. We have launched multiple
products in FY23 and intend to venture into new segments in the coming years through our
well-established brands.
Digital Transformation and E-Commerce Initiatives
Recognising the significance of digital channels and e-commerce
segments, we are preparing to embrace this transformation. By leveraging these platforms,
we aim to reach a wider audience, expanding our consumer base and reinforcing our position
as a market leader. We have built an incredible digital ecosystem, which has helped us
establish and enhance our connection with internal and external stakeholders.
Sustainability and ESG Commitment
We remain committed to sustainability and responsible business
practices as we grow and prosper. At Patanjali Foods, we recognise our responsibility
towards the environment and society and strive to impact every aspect of our operations
positively. Environmental stewardship is one of our top priorities. As a consumer goods
manufacturer, we acknowledge the importance of minimising our carbon footprint and
conserving natural resources. Over the years, we have implemented energy-e_cient practices
in our manufacturing units, reducing energy consumption and greenhouse gas emissions. We
are engaged in a proactive exploration of integrating renewable energy sources into our
operational framework. Furthermore, we dedicatedly promote sustainable agricultural
practices. Our sourcing of raw materials, especially for edible oils and soya-based
products, focuses on responsible farming and sustainable supply chains. We actively engage
with farmers to adopt sustainable agricultural methods that are environmentally friendly
and contribute to their economic well-being.
Our social responsibility goes beyond our immediate stakeholders. We
believe in empowering communities and supporting initiatives that promote education,
healthcare and skill development. rough various programmes, we have positively impacted
the lives of countless individuals, furthering the cause of inclusive growth.
On the governance front, we maintain the highest levels of
transparency, accountability and ethical conduct. Our Board of Directors comprises
individuals with diverse expertise, and they play a pivotal role in guiding the company
with integrity and prudence. We are committed to upholding your trust in us as custodians
of your investment.
Looking Ahead
As we stand at the cusp of a new era, we are excited about the growth
prospects that lie before us. With your continued support and trust, we are confident in
achieving new milestones and creating sustainable value for all our stakeholders.
We sincerely appreciate the entire team at Patanjali Foods, whose
dedication, hard work, and passion have driven our success. We also thank our valued
customers whose loyalty inspires us to push the boundaries of excellence.
ank you again for your support, and we look forward to another fruitful
year ahead.
Regards,
Swami Ramdev Acharya Balkrishna