Health and wellness company Gudutch Ayurveda is targeting a revenue of Rs 100 crore in FY25. ET Retail aims to expand to 10,000 stores by end of this fiscal year

New Delhi: Guduchi Ayurveda, a health and wellness Ayurvedic products company, strategically combines online and offline penetration in India to achieve revenue of Rs 100 crore in financial year 2024-25 said founder Prashant Vastred. In an exclusive interview with ETRetail, the company shared that it achieved a revenue of Rs 25 million in FY24, compared to revenue of Rs 17 million in the previous financial year.

The company’s revenue growth has been attributed to its mastery of both offline and online markets. Currently, the company is focused on achieving a balanced sales contribution of 50% from offline channels and 50% from direct-to-consumer online channels.

Speaking about its offline presence and expansion plans, Vastred said the brand was earlier present in Ayurvedic retail stores. To strengthen its offline reach, Guduchi Ayurveda has expanded its product range to include six healthy drinks for weight loss. The company says its main product focuses in the lifestyle category are weight management and liver detox.

The company emphasizes its commitment to customer convenience and plans to place its products in general pharmacies, Ayurvedic stores, and supermarkets to reach more customers.

Vastred further added, “We have already placed our healthy drinks in 300 retail stores and plan to penetrate 10,000 stores across India by the end of this fiscal year, with healthy juices alone contributing a revenue of Rs 4,000 crore. is expected.”

Currently, about 65 per cent of the company’s revenue comes from tier 2 cities, 25 per cent from tier 1 cities and the rest from tier 3 areas. Looking at the current revenue contribution, the company aims to leverage the power of influencers from tier-2 cities to strengthen its local reach, especially within Karnataka.

The company currently derives about 70% of its online sales from its website and the remaining 30% from marketplaces like Amazon and Flipkart. Additionally, the company has plans to partner with quick commerce platforms to sell healthy drinks.

“We believe that our strategic focus on both volume-driven offline expansion and value-driven online services will allow us to maintain profitability, even at the expense of revenue,” Vastred said.

Key to Guduchi Ayurveda’s expansion strategy is product differentiation between online and offline channels. Customer acquisition costs (CAC) on online platforms are high, so focus on increasing profit margins and lowering logistics costs.

Additionally, the company is exploring international expansion opportunities by leveraging its unique products and formulations.