Patanjali Ayurveda, founded by Baba Ramdev and Acharya Balkrishna in 2006, has emerged as a transformative force across rural and urban India. Through strategic investments in different sectors, including manufacturing, agriculture, retail and skill development, the brand claims to generate jobs, amplify farmer incomes, and empower local entrepreneurs for a better, self-reliant India. Let us tell you how their investments are catalyzing the growth of urban as well as rural sectors.
Strengthening Rural Economies Through Farmer Sourcing
As we all know, Patanjali sources most of its raw materials, such as grains and herbs, directly from local farmers without any middleman, which helps in getting the producers the best price for their products. Besides, the company runs Kisan Samriddhi Programme, a joint initiative with NSDC and ASCI to train the farmers about modern agricultural practices, along with organic farming and sustainable agricultural methods such as crop rotation, pest control, to name but a few.
Patanjali also provides farmers with digital tools such as soil-testing kits, weather advisory, and fintech-based working capital solutions to add to their growth. Let’s give you an example:
In Maharashtra’s Wardha district, a brinjal farmer switched from conventional to organic farming after participating in Patanjali’s programs. This not only increased his profit but also improved soil health, which marks sustainability.
Building Rural Industrial Infrastructure: Mega Food & Herbal Parks
Patanjali has invested heavily in rural-based food-processing infrastructures. One of them is YEIDA Mega Food Park (Yamuna Expressway area), where they have invested thousands of crores in a biscuit plant, a milk processing unit, and an herbal farm. These facilities are projected to generate thousands of jobs for nearby rural communities.
Similarly, they have also set up mega food parks in Vizianagaram, Andhra Pradesh and the MIHAN area in Nagpur. These food parks will add value to rural economic growth by generating employment apart from farming.
Urban Economic Impact Through Retail Expansion & Acquisitions
Talking about urban centres, Patanjali has expanded its retail reach by opening thousands of franchises and mega stores. The cost of establishing one mega store is about one crore, and this opens the doors for new entrepreneurial avenues in cities. These mega stores boost trade, support local retailers and allow customers access to a wide range of affordable products.
For example, Patanjali acquired Ruch Soya for approximately 4,350 crores, which not only strengthened Patanjali’s portfolio but also boosted production and distribution in the urban markets. Moreover, Patanjali’s hybrid distribution strategy that combines traditional markets and online stores helps maximise customer reach by increasing product availability.
Diversifying Investments: Healthcare, Renewable Energy & IT
Recently, at the Madhya Pradesh Global Investors Summit 2025, Patanjali announced a Rs 5,000 crore investment plan across herbal medicines, Ayurveda, food processing, solar energy, and IT manufacturing in the state. The company also plans to set up seed units, crop diversification programs, healthcare services and educational institutions to boost rural welfare.
Supporting Inclusive Growth & Women’s Entrepreneurship
Patanjali is committed to women’s entrepreneurship and empowerment. For the same, Patanjali has partnered with the Rural Development Ministry under NRLM to market products made by women self-help groups (SHGs). By co-branding their products, Patanjali takes care of their distribution to significantly boost the income of these self-help groups.
Final Word
Patanjali’s multi-sectoral investments, ranging from farmer sourcing, building rural industrial food processing facilities, retail expansion in cities, healthcare and renewable energy, aim to catalyze economic growth in both rural and urban India. The company has a unique eco-chain model which offers promising results in terms of generating jobs, supporting MSMEs, women entrepreneurship and boosting economic growth.
(Note: This article is written by the Brand Desk.)