Yoga guru Baba Ramdev’s Patanjali Ayurved, the home-grown consumer goods company that has given sleepless nights to the likes of Hindustan Unilever and Colgate, is planning to raise Rs 1,000 crore in project loans as its current capacity is bursting at the seams.
The company is in talks with banks including State Bank of IndiaBSE -0.07 %, Bank of Baroda, Uco Bank and a few others as it has embarked on an expansion plan setting up plants across the country. Individual banks could not be reached for comments immediately.
“Long term project loans with 5-10 years maturity should serve our purposes,” the company’s managing director Acharya Balkrishna told ET confirming the matter.
“Project financing will increase as we expand our presence nation-wide, extending product lines. We require this as we are now setting up more plants across the country,” he said.
Public sector banks Punjab National Bank and SBI have earlier extended credit faciliity to the company but not long term project loans. Large private lenders ICICI Bank, HDFC Bank too approached Patanjali.
“So far, we have been taking short term loans to meet our working capital requirements,” said Balkrishna.