When you start to grow, everyone wants to be a part of your success story. This is evident in case of Indian FMCG giant Patanjali Ayurved, which has been granted loans by ICICI Bank and HDFC Bank, even as lenders are shying away from most corporate borrowers.
The Haridwar-based consumer goods maker was approached by these banks who offered it corporate loans, as said by MD Acharya Balkrishna. He added that public sector banks SBI and PNB have so far extended their credit facility to the company.
"While big industrialists fail to repay loans, we pay off our dues right on time. This is made possible due to our escalating product sales," Balkrishna told ET.
Patanjali Ayurved has left behind several established names in the industry after its inception a decade ago, and now plans to raise funds through bank term loans or corporate bonds. It is now looking forward to doubling its production capacity to 2,000 tonnes a day by the end of 2016-17.
"Whoever gives us cheap money, we will go for it as we are expanding fast," Balkrishna said. "More banks are coming to us with their offers while a few merchant bankers too contacted us with fundraising proposals via bond sales. We are exploring all options," he said.
Patanjali is now planning to set up manufacturing units in Maharashtra, Madhya Pradesh, Punjab, Jharkhand and West Bengal, along with launching a new product line of nutrition baby foods.
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