Mumbai, September 3, 2024: Patanjali Foods Limited (PFL), a leading player in India’s FMCG and edible oils space, released its Business Responsibility and Sustainability Report, BRSR, for the fiscal year 2023-24. This detailed report shows the firm’s sustained commitment towards sustainability and lays out efforts toward inculcating environmental, social, and governance parameters into its way of working.
The Company Strategy: Product Portfolio and Global Footprint Expansion
Patanjali Foods continues to strengthen its position not only in domestic but also in international markets. And this has been its transformation from serving 28 states and 8 union territories to exporting its products to 34 countries in the journey of its rising international presence. Exports fetched ₹323.50 crore, accounting for 1.02% of total revenues in FY 2023-24. Patanjali is working on introducing new innovative products like biscuits and nutraceuticals to meet consumers’ demand globally.
The product range on offer, domestically, spans from food consumption by institutions to the HOReCa segment. With a formidable distribution network comprising more than 8,000 distributors, 1.5 million retail touchpoints, and an ever-growing online customer base backed by its “Order Me” app, Patanjali Foods is well-positioned to capture market share across all segments.
Commitment to Sustainability and Renewable Energy
Sustainability has remained one of the major pillars of the business strategy of Patanjali Foods. The company has invested considerably in renewable energy, consuming 20% of its total energy requirements from wind power, producing 127708136 kWh of electricity in FY 2023-24. Its wind energy business helped the company sequester 119,024 tonnes of CO2 during the period, while it demonstrated due diligence to reduce carbon footprint.
Patanjali Foods also fitted ZLD facilities in almost all its plants so that not a single drop of waste water reached the environment. Considering the dependency of the company on renewable energy and water-saving solutions, huge strides are being taken by the company regarding minimizing environmental impact from operations.
Focus on Palm Oil Production and Local Sourcing
The oil palm plantation initiative taken up by the company features as one of the key developments mentioned under the BRSF. It has been involved in developing 74,376 hectares of oil palm with more than 57,000 farmers in 12 major states of India. This would no doubt reduce the reliance of Patanjali Foods on imported raw materials and also contribute to the growth of local economies. In furtherance to expansion plans, the company has also opened 39 nurseries and 22 fertilizer godowns.
This move also coincides with a greater set of Patanjali initiatives regarding the sustainable sourcing of key raw materials, primarily for edible oil production. With increasing local sourcing of ingredients, Patanjali Foods is, in turn, reducing the possibilities of disruption in supply chains, as most global supply chains are highly volatile, thus supporting national agriculture.
Social Responsibility and Inclusive Growth
In a nutshell, diversity and inclusivity mean a very high commitment to social responsibility. As of the close of FY 2023-24, Patanjali Foods has 4,197 permanent employees, of which 3% are females. Besides, welfare measures taken by the company with respect to workers and farmers-like health camps and training programs in order to develop an inclusive growth model-are inextricably linked with the development and growth of the people.
Patanjali Foods Limited has also followed the proverb, “Well done is better than well said,” as it has spent ₹19.09 crore towards the promotion of CSR activities on health, yoga, education, and infrastructure development. These were part of the vision to offer community welfare improvement with simultaneous promotion of business growth.
Challenges and Opportunities
Furthermore, the BRSR has also outlined the risks and opportunities which the firm is facing. The major risks involve disruption to the supply chain on account of commodity inflation and fluctuation in foreign currency. Patanjali Foods, however finds opportunities in placing import substitution with domestic manufacturing and enhancement of exports. The firm thus plans for increasing the oil palm plantation area and enhancement of the export business to minimize these risks by making full use of opportunities arising in emerging markets.
Most importantly, Patanjali Foods continues with its innovations and consumer engagements. The company is closely watching the consumer trends and strengthening dealer networks for better brand penetration. Indeed, the company has been able to address the needs of a broad category of consumers-from premium to economy to the mass market categories.
Conclusion
Patanjali Foods’ BRSR, representing FY 2023-24, fully endorses the commitment of the company toward sustainability, responsible business practices, and inclusive growth. The company has been focusing on renewable energy, sustainable sourcing, and welfare aspects of the community in its effort to align with global ESG standards. While pursuing uninhibited growth both in the domestic and international markets, Patanjali Foods is well-positioned to lead in the FMCG sector by driving sustainable growth with full adherence to environmental stewardship and social responsibility.
Comprehensive details are available on the company’s website; therefore, stakeholders can get comprehensive details about Patanjali Foods’ performance and its future goals.