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“Get a small pack of toothpaste Patanjali’s Danta Kanti,” asked my husband as I was preparing my grocery list, “I have heard great things about it, not to mention its cheaper“.  Patanjali is present in almost all categories of personal care and food products, soaps, shampoos, dental care, balms, skin creams, biscuits, ghee, juices, honey, atta, mustard oil, masala, sugar and much more. I had heard about Patanjali products and checked with my friends and colleagues and found that many of them do use Patanjali products, such as desi ghee, its toothpaste Dant Kranti. The products are good and very reasonably priced compared with other brands, said many. What products are offered by Patanjali? How does the price of Patanjali products compare to other similar products. From where can one buy Patanjali products? There have been reports of Patanjali products being examined and sent for testing so are Patanjali products safe? How did Patanajli Ayurved start? Does Patanjali Ayurved make profit? How does Patanjali Ayurved compare with other similar FMCG companies?

Patanjali products and Comparison of prices of Patanjali products

Patanjali focuses on six big product portfolios.  Yeh ek swadeshi andolan hai. Humne rashtravad ke liye haath milaya hai (This is a swadeshi movement. We have joined hands in national interest),” said Ramdev. We are giving a tough fight to foreign companies in each and every segment — be it medicines, herbal cosmetics or foods. Both mass and the very affluent consumers are picking up Patanjali products,  and once you buy into the ayurveda philosophy, it’s not restricted to just one product.

  • Food, a breakfast range including cornflakes, healthy noodles, ghee, The company, which is about to launch oats corn flakes, is betting big on ready-to-eat food products, too. Patanjali’s vast food range consists of interesting concoctions such as an almond mix, a rose sherbet and a gooseberry juice. On Oct 2015 Patanjali launched atta noodles. Post healthy instant noodles, many more new products are in the offing. TThey are also working on herbal chocolates, rasgulla, idli and dosa mixes and an energy drink called Powervita to rival Bournvita, expected to roll out shortly
  • Healthcare ex: Chaywanprash, juices,
  • Toiletries : soaps,
  • Dental Products ex: Dant Kanti
  • Hair Care ex: Kesh Kanti
  • Cosmetics : face wash, creams
Products offered by Patanjali

Products offered by Patanjali

Patanjali products are available at lesser cost than other brands,at prices that are 15-30% lower than its competitors. As on Dec 2015, if Kellogg’s is selling flakes for Rs 91 and Rs 159 (MRP for 250 gm and 475 gm, respectively), Patanjali flakes are available for Rs 85 for 250 gm and Rs 145 for 500 gm. Maggi sells atta noodles for Rs.25, Patanjali offers it for Rs 15. Below image from Economic Times shows the price comparison of various Patanjali products.

Does Patanjali Atta Nooodles, Cornflakes fit in with the Indian heritage of all the other products Patanjali offers? Instant noodles, however pure the ingredients, can’t be said to be healthy. Is it the first step to brand dilution of Patanjali products? Patanjali Ayurved, however, insists the company has only catered to popular demand. Balkrishna also strongly denies that Patanjali’s noodles are unhealthy. “The wheat content in Maggi noodles is very little, while ours is a wheat-based product,” he says. “We are using rice bran oil, which is far better for health than the palm oil other noodles makers do”.

Patanjali products availability and Advertising

Initially, Patanjali shunned the conventional distribution network, preferring to rely on its own channels such as Chikitsalayas (franchise dispensaries) and Arogya Kendras (health centres which sell Ayurvedic remedies). In October 2015, Patanjali tied up with the Future Group to sell its products at Big Bazaar and other Future Group stores in 245 cities and towns.  Most of  big retailers like Reliance Retail, Big Bazaar, Hyper City and Star Bazaar are now stocking Ramdev’s FMCG products. Patanaji products are also available online at patanjaliayurved.net , e-commerce sites like BigBasket, ZopNow, Amazon, Flipkart etc.

Patanjali’s own advertising was limited in the past, but has increased considerably of late, with ads appearing on TV channels  such as Star and Zee. It is also in talks with The Walt Disney Co. owned UTV channel. Hema Malini, who reportedly once took yoga lessons from Ramdev, has been roped in to endorse Patanjali’s line of maida-free biscuits. Olympic medallist, wrestler Sushil Kumar will endorse its ghee. A big advertising push is expected soon, with ad agency Mudra drawing up an expansive campaign.  Patanjali Ayurved would have spent Rs 360 crore on advertising between November and March as it seeks to establish itself as a serious contender in the country’s estimated Rs 3.2 trillion packaged goods market.

Are Patanjali Ayurved  products safe?

There have been reports of Patanjali products being examined and sent for testing. Some of the reports of Patanjali products are

  • Uttarakhand government decided to test two of Patanjali’s food products after media reported that insects allegedly were found in a packet of Patanjal Atta Noodles at Hisar in Haryana and fungus being found in a packet of Patanjali ghee in Haridwar, (10 Dec 2015)
  • Ramdev’s Patanjali among 2 firms served FSSAI notice by the government for violating food safety norms in manufacturing atta noodles, (24 Nov 2015, 11 Dec 2015).
  • The Rajkot Municipal Corporation (RMC) sent samples of certain Patanjali food items,  like cow ghee, biscuits, atta noodles, chilly powder and besan for testing (30 Dec 2015)

About  Patanjali Ayurved Limited

Patanajli Ayurved Limited (PAL) is the company that makes Baba Ramdev’s Patanjali products.  Patanjali Food and Herbal Park is the production unit of Patanjali Ayurved situated at Padartha on Haridwar-Laksar road.  Rs 5 billion Patanjali Food and Herbal Park is spread across an area of around 95 acres. It is anticipated that during its operational phase, the park will provide direct employment for 7,000 people. Youtube video shows Patanjali Food & Herbal Park-Patanjali  (10 mins in Hindi by Baba Ramdev).  Three more manufacturing units are being set up in Madhya Pradesh, Gujarat and Rajasthan.

How did Patanajli Ayurved start?

Ramdev rose to national fame as a yoga guru through his programmes on TV channels Sanskar in 2001 and Aastha from 2003. Earlier, in 1995, when Ramdev was still a little known yoga teacher in Haridwar, Acharya Balkrishna set up Divya Pharmacy ,under the aegis of Ramdev’s guru, Swami Shankar Dev’s, ashram – to make Ayurvedic and herbal medicines. For the first three years, till 1998,  the medicines  were distributed free.  The medicines proved so popular that Ramdev and Balkrishna sought to scale and diversify into other products. But that proved difficult since Divya Pharmacy was registered under a trust. At the same time, with Ramdev’s popularity soaring, substantial funds began to come in, sizeable loans from the likes of NRIs Sarwan and Sunita Poddar, as well as locals such as Govind Agarwal , which in turn helped to get bank loans. Thus was born Patanjali Ayurved as a private company in 2006, which has since rolled out a range of products, in healthcare, hair care, dental care, toiletries, food and more . Baba Ramdev has no stake in PAL. Balkrishna holds 92% stakes in the firm and the remaining 8% is held by a Scotland based NRI couple, Sarwana and Sunita Podar.

Does Patanjali Ayurved make profit?

Baba Ramdev’s brands seem to have scaled up quite rapidly.  In fact, spurred by the popularity of brand Ramdev, Patanjali Ayurved has come up one of the fastest growing FMCG companies in India.  For 2013-14, Patanjali Ayurved clocked a turnover of about Rs 1,200 crore, up from about Rs 850 crore a year earlier and Rs 450 crore in fiscal 2011-12, company filings and industry sources said. And in the FY 2015-16, Patanjali is expected to clock a turnover of Rs 2,000 crore, This marks a 67% jump from the previous fiscal. In October, announcing Patanjali’s partnership with the Kishore Biyani-led Future Retail Ltd, Ramdev said that Patanjali would close the current fiscal year ending 31 March 2016 with Rs.5,000 crore in revenue. In 2016-17, it will start tapping the export markets, and over the next five years, Ramdev said, Patanjali would become the largest consumer packaged goods firm in India.

Patanjali Ayurved Limited (PAL), the flagship company of the Patanjali group, reported a profit after tax (PAT) of Rs 316.60 crore (provisional) in FY15, and increase of nearly 71% over FY14, when it posted a net profit of Rs 185.67 crore. Between 2012-13 and 2013-14, the company’s net profit grew by nearly 103%, from Rs 91.33 to Rs 185.67 crore.

How does Patanjali Ayurved compare with other similar FMCG companies?

With the Patanjali brand’s growing reach and popularity, it’s now being discussed in corporate boardrooms as well. Investment banking firm CLSA, in a report titled ‘Indian Consumer: Taste of India’, said Patanjali Ayurved, may be the most diversified consumer goods firm in India, bigger than Jyothi Labs and Emami which has brands like Zandubalm, Boroplus, Navratna oil and Fair and Handsome in its portfolio. Emami reported a consolidated revenue of Rs 2,217 crore with a net profit of of nearly Rs 486 crore for FY15. Marico posted a net profit of 573.45 crore for FY15, an increase of 18.44% over the financial year 2013-14. Jyothy Labs had recorded a profit of Rs 121 crore in FY15. From BusinessToday Baba of All Trades

Comparison of Patanjali Ayurved with other FMCG companies

Comparison of Patanjali Ayurved with other FMCG companies

Future of Patanjali Ayurved Products

Will Patanjali continue its march?

  • Launching non Indian foods like noodles, cornflakes Is Patanjali losing its edge instead of focusing on its differentiator,herbal and Ayurvedic products,it seemed to have become more competitor-focused. On 15 November, it launched atta noodles as a competition to Maggi Noodles.
  • Food Safety: The Food Safety and Standards Authority of India (FSSAI) sent Ramdev legal notice, alleging that he didn’t obtain due permission prior to the launch of his noodles.
  • Like its competitors, It is embracing the more expensive traditional advertising vehicles,television, print media, etc, instead of continuing to build the brand through alternative media, which is slow but extremely effective.

What do you think of Patanjali Ayurveda products? Do you use them? If yes what? Do you think Patanjali Ayurveda products are popular because of Baba Ramdev or lost cost? Will Patanjali Ayurveda  products survive test of time?

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