PATANJALI PRODUCTS

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Contents
Introduction........................................................................................................................................3
Different Awards & Recognitions.................................................................................................3
Pre – COVID Supply Chain of Patanjali.......................................................................................4
New Product Launched by Patanjali during COVID.................................................................5
How Patanjali Modified their Supply Chain During COVID.....................................................6
Financial Changes like Profit, Operational Expenses.............................................................7
References..........................................................................................................................................8

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Introduction
Patanjali is a prominent ayurvedic and FMCG company in India. The organization is
also awarded as fastest growing company across the country dealing into herbal and
ayurvedic products. The company initiated the operation in year 2006 and currently
the company is headquartered in Haridwar, Uttarakhand. [ CITATION Juh18 \l 16393 ]
state that the company offer product into range of personal care and food segment
along with baby care and beauty products too.

The company is currently dealing into more than 450 different types of product while
the company also manufactures more than 300 medicines which can treat a range of
body ailments. [ CITATION Ind21 \l 16393 ] state that the organization boast about the
quality and natural components of the products promoting Ayurveda. The best –
selling products of the company are Dant Kanti, Kesh Kanti, Herbal bath soap, honey
etc. which are propelling the growth of company manifolds. [ CITATION Rat19 \l 16393 ]
stated that Patanjali group also made effort to promote Patanjali Noodles in order to
promote the healthy eating habits among kids of the country.

[ CITATION Ind21 \l 16393 ] commented that the actual reason of the success of the
company are two folds, first is that the lifestyle of the customers of India have been
shifted more towards natural and ayurvedic products instead of branded and
imported products. Second reason is that the products of Patanjali are not only
having good quality but it is also less expensive for personal care and food products
in the markets because of which the middle - class segment preferred to move for
products of Patanjali. The other facts of Patanjali products are as below:
 The company produces approximately 300 medicines for treating the ailments
of body.
 The growth rate of Patanjali group is recorded up to 130%.
 The turnover of the grew by 150% within the time span of 2014 to 2016.
 There are more than 47000 retail counters operating across the country.
 There are more than 3500 distributors and warehouses operating in 18
different states of India.

Different Awards & Recognitions

Year Awards

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 2016 ‘Bharat Gaurav’ award from India International Friendship society.
2016 “Bloomberg special recognition award” to Acharya Balkrishna
2014 “Ayurveda Expert” in Ayurveda Summit held in Gujarat
2013 ‘Manav Ratan” award by Antarashtriya Manav Milan Organization
2013 “Sanskrit Prasarini Sabha” from Assam
2011 “Spirit and Entrepreneurship award” by IOSL foundation

Pre – COVID Supply Chain of Patanjali

The supply chain is one of the most critical aspect of the FMCG companies in order
to sustain in the market. Those companies are considered as successful FMCG
companies which have covered effective level of market and also have availability of
products at different location which enable the company to generate the revenue
effectively. [ CITATION Juh18 \l 16393 ] state that the success of Patanjali is considered
in Indian market, because the company initially used aggressive marketing and
distribution method, because of which the products could be available across the
country. It is quite simple to understand that when any new product is introduced in
the market then before that the company advertise the product in market. However,
once the customer start recognising the product then it is duty of the company to
ensure that the products are distributed across the country.

In case the product could not be available in the market at right time, then it would
result into decline in sales volume and in this meanwhile, the customer may also
develop likeliness towards any other product. The company need to maintain an
effective transportation network in order to ensure that the company should have
good supply chain network.

As far as, the supply chain network of Patanjali before pre – covid is concerned then
before 2015, the company was supplying its products through local wholesalers and
retailers. The products could be picked up from nearby retailers, chemist shops, etc.
However, after 2015, the Patanjali company started its own retail stores exclusively
selling their own manufactured products [ CITATION Rat19 \l 16393 ]. After 2015, the
company expanded its stores manifold and also drew its products from local stores,
retailers and chemists as the customer has to exclusively visit Patanjali store in order
to grab the products. The company admitted in 2019, that the supply chain network
of company was broken and it could not keep the pace with sales growth prospect as
well as internal restructuring.

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Patanjali proved as fast - growing company but there are various factors such as the
servicing of trade channels, infrastructure development and the GST rollout affected
the company’s production and supply chain process. In order to expand the business
up to the next level of the growth, the company required some time in order to
refurbish the supply chain and distribution network.

New Product Launched by Patanjali during COVID

The company launched special Corona Treatment Kit during the COVID 19
pandemic claiming that the product is an ayurvedic treatment for the COVID 19. The
treatment is said to be considered as 100% favourable and the clinical trials were
conducted on Corona affected patients at Patanjali Yogpeeth in Haridwar [ CITATION
Rav20 \l 16393 ]. However, this product faced lot of controversy during the period of its
launch as the Ministry of AYUSH took significant cognizance of the report by stating
that the facts and details claimed by the Corona treatment kit of Patanjali cannot be
supported by Ministry with 100% support.
 The company was asked to submit the sample size, sites and hospital where
the clinical study was conducted along with the clearance of Institutional
Ethics Committee.
 The AYUSH ministry also asked the medicine development team of Patanjali
that they should provide the composition of details of medicine which is meant
for treatment of COVID 19. The ministry also ordered the company to stop the
advertising of product until the controversy against the product could not be
cleared.
 AYUSH ministry also asked the State Licensing Authority of Uttarakhand
Government to provide the license and product approval details of Coronil
medicine of Corona treatment from Patanjali.
 Patanjali claimed that the clinical trial was conducted at NIMS, Rajasthan and
the linked documents were also submitted to AYUSH ministry.
 The corona kit consisted the Ayurvedic medicine for the period of 30 days and
the product was available in market at rate of INR 545 across India. The
product is actually not the immunity booster but is a cure of Corona virus.
 Ministry of AYUSH approved the company that it can start selling its product
in the market.

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However, the other products were continuously being sold in the open market but the
Coronil kit of COVID 19 treatment was exclusively sold in the market. Baba Ramdev
of Patanjali also claimed that, WHO also recognised the Coronil kit as ayurvedic
medicine for Corona [ CITATION ETB21 \l 16393 ].

How Patanjali Modified their Supply Chain During COVID

During the pandemic period, initially the government imposed strict lockdown in India
but still there are some of the organizations providing essential goods were open and
operational. The retail stores were providing the goods of daily use to the customers.
In fact, the online retail stores also pushed themselves in order to provide frequent
services to fulfil the customer’s need.

The FMCG companies such as Patanjali have to swiftly respond to the

unprecedented challenges by using innovative strategies for maintaining the supply
chain and also to ensure that the consumers can access the products in convenient
manner and they should not remain in any panic. [ CITATION Rav20 \l 16393 ] argued
that, the companies also implemented the strategies to scale – up and re – start of
the operation at plants and warehouses in order to strike the balance between online
and offline deliveries. The FMCG companies have to pull out themselves in order to
stay resilient against the issue.

As far as supply chain modification of the COVID 19 period is considered then the
stores of the company were operational as like earlier. The customers could grab the
essential products from its store. But as because of moral responsibilities, the people
were prohibiting to go outside and shop from the physical stores because of which
the sales from Patanjali physical stores started declining. So, the major modification
made by Patanjali during COVID 19 pandemic was that it also started providing the
products through online channels aggressively. The customers could easily order
products through prominent online sites such as Nykaa, Flipkart, Amazon etc.

Financial Changes like Profit, Operational Expenses

The revenue of Patanjali products have been increased by 6% consecutively every
year. The company recorded the revenue of INR 9024.20 crore in financial year

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2020, because of which the profit was jumped by approximately 38.8%, i.e., INR 485
crores [ CITATION Dso20 \l 16393 ].
Financials of Patanjali Ayurveda

Source: https://www.bloombergquint.com/business/patanjali-ayurveds-profit-rose-
nearly-40-in-fy20-says-brickworks

The operating profit of the company rose by 9% during the period of one year, i.e.,
which was calculated at the rate of INR 944.6 crores on basis of the rating of the
company calculated in short – term commercial paper.

The profit of Patanjali soars up too high during 2020, because the sales of Patanjali
was at its peak during March 2020, when the government announced nation – wide
lockdown. The sales of the company were significantly impacted for the goods falling
into category of essential products. [ CITATION Dso20 \l 16393 ] further mentioned that
the Quarter 1 of financial year 2020-21 was quite good for the company because the
consumers were aggressive during the period of lockdown as the customers ended
up stocking the essential care products such as hygienic, personal care and other
medical related products.

References
Bhushan, R., 2019. Supply, distribution could not match fast growth at patanjali:
Acharya Balkrishna. [Online]
Available at: https://economictimes.indiatimes.com/industry/cons-
products/fmcg/supply-distribution-could-not-match-fast-growth-at-patanjali-acharya-

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balkrishna/articleshow/68041253.cms
[Accessed 10 March 2021].
Dsouza, S., 2020. Patanjali Ayurved’s Profit Rose Nearly 40% In FY20, Says
Brickworks. [Online]
Available at: https://www.bloombergquint.com/business/patanjali-ayurveds-profit-
rose-nearly-40-in-fy20-says-brickworks
[Accessed 10 March 2021].
ET Bureau, 2021. Baba Ramdev's Patanjali Ayurved claims it has a WHO-approved
Covid medicine. [Online]
Available at:
https://economictimes.indiatimes.com/industry/healthcare/biotech/healthcare/baba-
ramdevs-patanjali-ayurved-claims-first-evidence-based-medicine-for-covid-
19/articleshow/81106237.cms?from=mdr
[Accessed 10 March 2021].
India Brand Equity Foundation, 2021. Patanjali Ayurveda Limited. [Online]
Available at: https://www.ibef.org/industry/fmcg/showcase/patanjali-ayurved-limited
[Accessed 10 March 2021].
Kumar, R. P., 2020. Patanjali launches coronavirus medicine. Latest developments
in 10 points. [Online]
Available at: https://www.livemint.com/news/india/patanjali-launches-coronavirus-
medicine-latest-developments-in-7-points-11592975416993.html
[Accessed 10 March 2021].
Thakur, J. G. & Saha, A., 2018. A Study of Supply Chain of FMCG Companies With
Particular Reference to Patanjali. Journal of Emerging Technologies and Innovative
Research, 5(10), pp. 120-123.

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