Yoga Guru Ramdev's Patanjali set to enter big retail

Yoga Guru Ramdev’s Patanjali Ayurveda is set to make a big entry in the retail space with Kishore Biyani’s Future Group. A renowned name in FMCG space, Ramdev along with Biyani will hold a press conference in Delhi on Friday to reveal their joint future plan.

Although both companies were tight-lipped on the details of the tie-up, the move is being seen by market participants as revolutionary in FMCG and retail space since both the promoters are considered veterans in their respective fields.

Baba Ramdev holds no stake in Patanjali Ayurveda. However, its products across 4,000 Patanjali outlets in the country are sold because of his name. On the other hand, the Future group has been at the forefront of organised retail in the country.

The company which produces products ranging from biscuits to facial herbs has recently announced plans to launch atta noodles for around 30 per cent less than Maggi atta noodles’ price, thus trying to capture the Rs 3,800 crore noodles market in India where Nestle’s Maggi ruled the roost until recently.

Market analysts share the view that Patanjali’s products can pose risk to competition in the FMCG space as they are priced lower than those of other players in the market.

Shares of Future Consumer Enterprise ended at Rs 16.30 on the BSE, up 7.59 per cent from Wednesday’s closing price.