Patanjali Ayurved Ltd is dignified to get its hand in the solar energy market. Yoga guru Baba Ramdev’s company primarily produces consumer goods. Acharya Balkrishna is the managing director of Patanjali. In his view venturing into solar aligns with the swadeshi movement by Patanjali. Solar has the potential to provide electricity in every house of India. This is the first time when the company is venturing into infrastructure sector and it’s after it has succeeded in consumer products.
Ever since its inception in 2006, Patanjali’s revenue has become five times from INR 2,006 crore in first year to INR 10,561 crore in 2017. The aim is to reach INR 20,000 to 25,000 crore of revenue by 31 March, 2018. Patanjali wishes to start with manufacturing solar equipment to get started. The government is also working towards a 30% capital subsidy for new solar manufacturers.
The per capita energy consumption in India is 1,200 kilowatt hours and India is wishes to improve it. India is also working on “rent a roof” policy which will support installation of rooftop solar power capacity.
Balkrishna thinks that these concessions and support provided by the government will certainly help Patanajli to manufacture solar panels without any compromises in the quality. Patanjali does not wish to delve into a price war with Chinese solar panel manufacturers.
Those poor quality solar panels which were rejected by developers are being sold in the domestic market at discounted prices. Solar panels account for 60% of cost of the solar projects.
Earlier this year, Patanjali acquired Advance Navigation and Solar Technologies Pvt Ltd –a manufacturer of navigation equipment; for its solar venture. The plant has a manufacturing capacity of 120 megawatts for now. The company is planning to invest about INR 1,000 crore to solar equipment manufacturing. The factory in Greater Noida will be fully functional in the next couple of months.
Patanjali thought about stepping into solar panel manufacturing when the spokespersons decided to use solar energy for their factories that’s when they realized that most of the modules come from China and they lacked quality.
Average efficiency of a solar panel usually is just 16-22% and sub-standard quality panels only affect capacity.
Patanjali started to manufacture solar panels for its factories at first and then later on it decided to utilize the capacity to manufacture more solar modules. The utility scale production is yet in nascent condition.
Apart from selling packaged consumer goods, the company showed presence in retail, education and healthcare as well. From selling shampoo, toothpaste and biscuits to noodles, rice and wheat, Patanjali has it all. Many experts question the motivation behind this diversification of Patanjali.
The two segments are completely different from each other and need different abilities. However, the business pivots on the concept of “sawadeshi versus videshi” concept which justifies Patanjali’s step as the solar equipment manufacturing between domestic and Chinese is at rise. Patanjali is going to stay on the track and also looks or expansion with the rise in demand.