Patanjali uses multiple distribution channels to cater to the market.

Company has a
reach of 0.2 million outlets. Patanjali has scaled up its distribution significantly over the
last few years, and is now available to consumers through three main avenues:

1) Exclusive outlets 2) General retail outlets and 3) E-commerce.

PAL has a strong presence in the market through its 1200 chikitsalayas, 2500 arogya kendras, 7000
open store in villages and 5600 marketing vehicles.

 Chikitshalyas :
The Chikitshalyas were franchise stores of Patanjali Ayurveda Limited that operated
along with an Ayurveda doctor appointed by the Company. These stores had the
liberty to store all of patanjali pharmaceutical products and FMCG products. Initially
they served as a Ayurveda hospitals under the banner of Patanjali, with an visiting
Ayurveda Doctor. The salary for the doctor was borne as an expense between the
franchise owner and the company, where the salary for the Ayurveda Doctor was
Rs.15000 per month.

 Arogya Kendras:
Arogya Kendras are nothing but the same as Chikitshalyas without the requirement
to appoint a Doctor and exclusivity to store mostly FMCG products and medicines
that didn’t require a doctor’s prescription. An initial setup cost of Rs.50000 as
donation was required to setup an Arogya Kendras. The margin for Chikitshalyas and
Arogya Kendras were 15 to 18% depending upon the products. And all of the orders
made through the outlets were cash and care business model.

 Retail outlets:
Apart from being present in exclusive outlets, products are also available on general
retail sale. The group plans to expand its distribution network by 10x with regards to
this channel over the next few years. Products are also available at chemists.

 E-commerce:
During the last year, Patanjali has aggressively made its products available online.
Apart from having a presence on third-party e-commerce websites such as
Amazon.com and Bigbasket.com, the company is also selling via its website
www.patanjaliayurved.net, which offers free delivery for orders above INR499.
Patanjali is also implementing its ERP for better inventory management and has
implemented SAP already