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The Kamadhenu of rural India – awaits tap pin CAPITAL NOTES CAPITAL NOTES The growing aura of Ayurveda...
 
The growing aura of Ayurveda...
An old grandmother excitedly gobbles up the noodles, as a diet conscious youngster holds an expression of delight while she takes her spoonful. A peppy number plays in the background emphasising the health benefits of the snack while kids dance around to the happy tune as they enjoy the meal.

These pleasant scenes of goodness are not just a visual imagery of the Rs 3250 crore Patanjali brand’s advertisement, but also a realistic portrayal of what the brand has come to achieve. Promising the goodness of natural remedies and Ayurveda, the Patanjali brand has captured the hearts of several Indians, across all age groups, validating the shifting consumer behaviour to a health conscious value proposition.

 

800 products, Rs 3267 cr. revenue...

 

Acharya Balkrishna established the Patanjali Ayurved Ltd in 2006 along with Baba Ramdev with the goal of propagating the benefits of the ancient wisdom of Ayurveda. The company manufactures around 800 products including 45 types of cosmetic products and 30 types of food products. The company operates with the motive of ploughing back its profits to support growth or to deploy it towards social causes. It sells its products through online platforms, franchise stores and through tie-ups with big retailers.

According to Brickwork Ratings, a credit rating agency, Patanjali Ayurved clocked in a provisional turnover of Rs 3266.97 crore in the first 10 months of the current financial year. This is more than double the figure of Rs. 1587.51 crore reported in the corresponding period of the previous financial year. In terms of profitability margin, Patanjali is almost on par with the bigger FMCG companies.

 

The advertisement blitz!

 

Patanjali’s marketing efforts have also been ahead of the curve. It has been among the most advertised brands across many categories on television, beating established brands. The company has priced its products at a significant discount to others in a number of categories, which is helping to drive sales. In addition, the growing proclivity towards natural products is also helping to boost the brand’s image and growth. Patanjali is believed to have attracted many talented youngsters inclined to positively influence the society and has kept its running costs relatively lower.

Patanjali’s success sparks many questions on the potential scene that is likely to emerge in the Indian FMCG scene. With the growing popular model of Patanjali, will other established players resort to the ‘natural’ path too? What will happen to the price dynamics? Will there be a lot of undercutting? Will Patanjali be able to stick to its model of simplicity as it scales up? Will scaling result in commerciality and threaten its natural and social value proposition?  Will it put India on the global map as phenomenon like yoga did? The unfolding months and years will be interesting to watch out in the Patanjali’s FMCG journey.

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