Patanjali Expands Beyond FMCG core, Eyes Insurance and Credit Sectors
India’s homegrown Ayurvedic FMCG major, Patanjali Ayurved, is stepping beyond its staple consumer goods portfolio into financial services, with recent forays into insurance and credit. The move signals a broadened ambition by the Baba Ramdev-led group to diversify its business while maintaining its core Ayurvedic and wellness identity.
Since its inception in 2006, Patanjali has become a household name, challenging multinational FMCG players with its herbal, made-in-India positioning. By 2023, the group’s FMCG arm, Patanjali Foods, had become a formidable player in categories such as ghee, honey, and herbal personal care. However, recent developments show an accelerated march into sectors beyond consumer goods.
Earlier this year, Patanjali announced a partnership with Bharat Co-operative Bank to launch Bharat Credit Co-operative Society, focusing on providing small loans and financial services to the underbanked. This comes on the heels of its entry into the insurance market through association with the Bharat Swabhiman Nyas, a trust chaired by Baba Ramdev, which recently collaborated with Niva Bupa Health Insurance to launch customized health insurance products aligned with Ayurvedic lifestyles.
These strategic shifts reflect a dual intent: expanding the group’s presence in everyday consumer lives while anchoring its wellness- and swadeshi-driven positioning. Industry analysts suggest Patanjali’s entry into financial products could help it unlock new customer segments, particularly among India’s semi-urban and rural populations where trust in the brand remains high.
Back on the FMCG front, Patanjali Foods continues to record growth, clocking ₹7,872 crore in revenue in Q3 FY24, up nearly 10% from the previous year. The company recently received board approval to raise ₹4,600 crore via a qualified institutional placement (QIP), signaling plans to strengthen its food and edible oil portfolio through innovation and capacity expansion.
While diversification into financial services carries regulatory and operational complexities, Patanjali’s brand equity and loyal consumer base could provide a strategic advantage. As the company straddles the line between FMCG and financial services, stakeholders will closely monitor execution and compliance risks.
Patanjali’s evolving strategy highlights