Name – Namrata Thakur

Batch: 2022-24
PGDM (General)

0
 ACKNOWLEDGEMENT

I would like to take this opportunity to express my sincere thanks and gratitude to
Prof. Aditi Rajput for all her guidance, inspiration, constructive suggestions which
helped me in the project. She gave us the opportunity to make this B.O.P report,
which helped me in doing a lot of research and I came to know about new things
I would also like to thank my friends and family for their diligent endeavor and
earnest desire to lead me towards my path of perfection.

Namrata Thakur Ms. Aditi Rajput

Batch: 2022-24 (CMC)
PGDM (General)

1
 DECLARATION

I hereby declare that the project work entitled “Patanjali Ayurved Ltd.” Submitted to
Jaipuria Institute of Management, Noida is a project report of the work done by
me under the guidance of Prof. Aditi Rajput. This report is submitted for the study
of PGDM in the year 2022-24.

The report provided is true to the best of my knowledge and belief.

Namrata Thakur
Batch: 2022-24
PGDM (General) Date - 19/07/2022

2
 Table of content

S.NO Particulars Page No.

1. Executive Summary 4-5

2. Chapter 1. FMCG Industry

1. Introduction 6
2. Commonly sold FMCG 6
3. Growth drivers for FMCG 6
4. List of some FMCG companies in India 7

3. Chapter 2. Patanjali Ayurveda Limited

1. Introduction 8-9
2. History 10
3. Key personnel of Patanjali 11-12
4. Patanjali Products 13-14
5. Competitors of Patanjali 15-16
6. Market Position of Patanjali 17
7. Patanjali Target Market 18
8. Distribution Strategy 19
9. Advertising Strategy 20-21
10. Vision and Mission 22
11. SWOT Analysis 23-26
12. Corporate Social Responsibility 27-28
13. News clipping 29-30

4. Chapter 3 Covid Impact Analysis 31-32

5. Conclusion 33

6. Learnings and Recommendations 34

7. Bibliography 35

3
 Executive Summary

Patanjali Ayurved Ltd.

CIN: U24237DL2006PLC144789

Patanjali = Baba Ramdev + Ayurveda + Organic + Healthy + Desi + People’s Trust +

Quality Product. The combination of all makes Patanjali a dynamic business model
in a country like India. Speaking of this, the way Patanjali manifested itself in the
Indian market reflects its brilliant marketing strategy and brand positioning. Though
Patanjali has a wide range of products, it gets sold easily because of the brainchild
behind this, i.e. Baba Ramdev, primarily known for his popularizing Yoga and
Ayurveda in India.

The word “Patanjali” is a compound name from “patta” (meaning falling, flying) and
“anj” (honor, celebrate, beautiful) or “Anjali” (reverence, joining palms of the hand).
The meaning of Patanjali is ‘Famous Yoga Philosopher’ or ‘The author of Yoga
sutras’.

The tagline of Patanjali is ‘Prakritit Ka Aashirwad’ which signifies that it uses

Ayurveda (something that is perceived as a healthcare approach) and organic and
natural ingredients to create a wide range of products, thus beautifully an illusion in
the mind of the customer that the product they’re using is really a nature’s blessing.

Patanjali Ayurved Limited was established in 2006 with a thought of rural and urban
development. The company is not merely an organization but a thought of creating a
healthy society through Yog and Ayurved.
They value their consumers and they believe by providing quality products a quality
life for them can be created. This is their primary apprehension and thus, they try to
take every measure to ensure quality like the Unique ID system to stop fake
products.
They recognize farmers as their main assets. They provide herbal and organic
products on contract farming. The company takes various initiatives for farmers to
raise their income and provide surety towards sale of their produce.
Farmers are provided with all sorts of technical-aid and necessary information about
efficient farming. Their manufacturing units process consumables like food items,
medicines etc. These are made available to consumers through a wide network of
Authorized Patanjali Stores and retails shops.

4
Their efforts in the sectors of social welfare, health, philosophy and spirituality are
guided by their values. They consider ‘guru satta’ and ‘bhagwat satta’ above
everything else. The company believe in optimum utilization of their capabilities for
the betterment of the society. Their functionality and concepts make them a
distinguished organization.
Their increasing processing units, retail outlets across the nation and the flourishing
sale-profit figures illustrate their glorious journey so far. Their consistency in growth
and expansion is due to the ever-increasing trust.
Patanjali is a leading name in the sector. They aim to grow and expand to enhance
their concept of wellness of individuals and the society.

5
 Chapter 1
FMCG Industry

1. Introduction
Fast-Moving Consumer Goods (FMCG) are products that are sold quickly and at a
relatively low cost. The fast-moving consumer goods industry is one of the key
contributors to the Indian economy. The FMCG sector accounts for the fourth-largest
sector in the economy, with household and personal care being the leading
segment accounting for 50 percent of shares. The main growth drivers for FMCG
have been increasing income, changing lifestyles, increasing awareness, and easier
access. Besides, the trend toward sustainable products also influences consumers’
purchase behavior. The urban segment (accounts for a revenue share of around
55%) is the largest contributor to the overall revenue generated by the FMCG sector
in India. However, in the last few years, the FMCG market has grown at a faster
pace in rural India compared to urban India. Semi-urban and rural segments are
growing at a rapid pace and FMCG products account for 50% of the total rural
spending.

2. Commonly sold FMCG

 Toiletries
 Cosmetics
 Household products
 Electronic goods
 Packaged food

3. Growth drivers for FMCG

 Increased population of working women

 Increased disposable income and growing per capita expenditure
 Increased purchasing power of the customers
 Increased awareness of online shopping
 Higher brand recognition and consciousness
 Constant change in consumer preference
 Banking policies and government's regulations

6
  Growing interest for foreign investors

4. List of some FMCG companies in India

 ITC Limited
 Godrej Consumer Products Limited

 Patanjali Ayurved Limited

 Parle Biscuits Pvt. Ltd

 Nestle India

 Britannia Industries Limited

  Marico Limited

 Dabur India Limited

7
8
 Chapter 2
Patanjali Ayurveda Limited

1. Introduction

Patanjali Ayurveda Limited (known as Patanjali), is an Indian multinational

consumer goods company having its headquarters and manufacturing units  based
in Haridwar, India and its registered office in Delhi. The company was founded
by Ramdev and Balkrishna in 2006. The CEO of the company, with a 94-percent
share hold, is Balkrishna. Ramdev represents the company and makes strategic
decisions.
The company was started with the vision of uplifting the life of Indian farmers by
locally sourcing the raw materials from them and making their lives better while at
the same time provide an opportunity to the Indian masses to move towards healthy
lifestyle by promoting Ayurveda and herbal products. Baba Ramdev started off as a
yoga trainer who featured in television programs in Aastha and Sanskaar channels
and made Indians realize that they have forgotten Indian tradition and art forms- one
of them being yoga. He got wide acceptance and word of mouth publicity helped him
reach to a wider audience. He projected Yoga as a panacea to all the health
problems.
The company has diversified into having a wide range of products within the foods
and beverages, personal care products, cleaning agents, cosmetics and ayurvedic
medicines.
Some of the most popular products of the company include Patanjali Dant
Kanti and Patanjali dairy products such as ghee, cow’s milk and curd.

9
 Type Private
Industry FMCG
Founded 2006
Founder Balkrishna
Ramdev
Headquarter Haridwar, Uttarakhand, India
Key People Balkrishna (Chairperson, Managing Director & Chief
Executive Officer)
Products Ayurvedic medicine
Consumer goods
Healthcare
Personal care
Cosmetics
Cleaning agents
Beverages
Fashion
Foods
Owner Balkrishna (94%)
Website www.patanjaliayurved.org

10
2. History

In 1995, Baba Ramdev was a little-known yoga teacher in Haridwar when his close
associate, Acharya Balkrishna, and he set up Divya Pharmacy under the aegis of
Ramdev’s guru, Swami Shankar Dev’s ashram to make Ayurvedic and Herbal
medicines. The medicines proved so popular that Ramdev and Balkrishna sought to
diversify. But that proved difficult since Divya Pharmacy was registered under a trust.
Meanwhile, Baba Ramdev started gaining popularity that helped him to receive funds
from the likes of NRIs and Sarwan and Sunita Poddar, as well as locals such as
Govind Agarwal which in turn helped to get bank loans. This led to the incorporation
of Patanjali Ayurved as a private company in 2006, with a purpose to bring the
Ayuved in the form of the various product range particularly in healthcare, hair care,
dental care, toiletries, food and more at breathtaking speed.
The initial days were quite difficult for them. They hardly had money to pay for the
registration of Divya Pharmacy. For the first three years, till 1998, they distributed the
medicines free. From buying the raw materials to grinding and mixing, everything is
done by themselves as they cannot employ staff because of the lack of money.
It is noteworthy for a brand to be not the same as its rivals, and Patanjali quickly
developed its own identity. Patanjali’s mantra of low costs goods and ‘swadeshi’ are
broadly viewed as the principal purposes for its prosperity.
He has picked up the trust of clients not just by demonstrating the products to them
but also by using them himself. However, all of the organization’s procedures to
verify the quality and amount of the items are strictly followed.
Patanjali Ayurved bids broadly by anticipating a picture of regular and unadulterated
items Baba Ramdev, its image diplomat, is additionally an open figure and well-being
advertiser whose mass intrigue has ascended in recent years.

11
3. Key personnel of Patanjali

S. No. Name of the Directors Designation

1. Acharya Balkrishna Managing Director/ Chief Executive Officer

2. Swami Mukta Nand Director
3. Ram Bharat Director
4. Ajai Kumar Arya Independent Director
5. Rakesh Mittal Director
6. Dr. Sumedha Woman cum Independent Director
7. Shashi Chandra Jha Company Secretary

Leadership

Yogrishi Swami Ramdev Ji

Yogrishi Swami Ramdev Ji was born to Smt. Gulab
Devi and Shri Ram Niwas in a village of Haryana. He
had his early education in a village school. At the
age of 14 he was admitted to the Gurukul at Kalwa
(near Jind, Haryana) where under the blessed
tutelage of Acharya Shri Baldevji. He studied
Sanskrit and Yoga, and earned a postgraduate
(Acharya) degree with specialization in Sanskrit
Vyakaraṇa, Yoga, Darsana, Vedas and Upaniṣads.
Later he was very much inspired by the life and
writings of Maharṣi Dayanand Saraswati and he
thoroughly studied Satyartha Prakasa, RG Vedadi Bhasya Bhumika etc. Along-side
the magnetism of Maharsi. Patanjali as an exponent of Yoga, Sanskrit Grammar and
Ayurveda continued to exert its influence on him. He has explained in detail the
benefits accruing from yoga in his two popular hindi books on the subject:
1. Yoga Sadhana evam Yoga Chikitsa Rahasya,
2. Praṇayama Rahasya.

12
Acharya Balkrishna Ji
Acharya Balkrishna Ji (born 25 July, 1972), a multi-
faceted personality, is a popular authority on
Ayurveda and a renowned medicinal plant expert. He
is a companion of Swami Ramdev who is known for
Yoga Revolution in the World and a founding pillar of
Patanjali Yogpeeth and Divya Yoga Mandir (Trust).
He is a man who has uplifted the spiritual tradition of
ancient saints. Acharya Balkrishna Ji is a renowned
scholar and a great guide under whose guidance and
leadership Ayurvedic treatment and research has
touched new dimensions. Indians regard Acharyaji as
an empowerer of Ayurvedic system of medicine. His efforts have significantly
contributed to the social, cultural, educational and economic aspects of India along
with the establishment of remarkable standards in the domains of literature and
therapy at a global level.

13
 4. Patanjali Products

Patanjali has a wide range of products with the theme of Ayurvedic/herbal being
common across all categories. It has four business divisions: food and beverages,
cosmetics and health, health drinks and home care. The highest revenue grossing
products are Patanjali cow ghee, Dant Kanti, Kesh Kanti, Patanjali Atta noodles and
Patanjali Aloe Vera juice and gel. The customer base of Patanjali is ridiculously huge
and with each passing day, it is growing bigger. A major ramp-up came when
Patanjali was relaunched by Baba Ramdev in 2014. After that it has not looked back.
The company is finding it difficult to cater to the demand of all the customers. It has
increased its distribution channels and expanded its reach multifold from the point
when it started. Production has also increased, and it has now over 450 products in
its portfolio.

Patanjali has the following range of products:

 Ayurvedic medicine
 Consumer goods
 Healthcare
 Personal care
 Cosmetics
 Cleaning agents
 Beverages
 Fashion
 Foods

14
Patanjali products can also be purchased from e-commerce giants such as Amazon
and Flipkart. Recently, Patanjali Paridhan was launched in November 2018 to mark
the entry into the apparel market. Later in 2018, the company expanded its hands
and took over the manufacturing of clothes also. It even opened a store for clothing
in Delhi under the brand name Patanjali Paridhan.

List of Top Patanjali Products with Price

Patanjali Product Name Price

Patanjali Dant Kanti (200 gm.) Rs.105

Patanjali Kesh Kanti Natural Hair
Rs.90
Cleanser  (200 ml)

Patanjali Saundarya Face Wash (60gm) Rs.60

Patanjali Ghee(500ml) Rs.310

Patanjali Chyawanprash  (1 kg) Rs.210

Patanjali Saundarya Aloe Vera Gel  (150
Rs.100
ml)

Patanjali Coconut Hair Oil  (500 ml) Rs.190

Patanjali Aloe Vera Kanti Body Cleanser
Rs.22
(75 g)

Patanjali Amla Juice  (1 L) Rs.140

Patanjali Honey  (1 kg) Rs.350

15
5. Competitors of Patanjali

There are several brands in the market which are competing for the same set of
customers. Below are the top 6 competitors of Patanjali:
1. Dabur India
2. Procter and Gamble (P&G)
3. Marico
4. Nestle Ltd
5. HUL (Hindustan Unilever Limited)
6. Himalaya Herbal Healthcare

Dabur India Ltd is an Indian multinational consumer

products company founded by S. K. Burman and
headquartered in Ghaziabad, Uttar Pradesh. The
company manufactures Ayurvedic medicines and natural
consumer products and is one of the largest fast-moving
consumer goods (FMCG) companies in India. Dabur
generates about 60% of its revenue from consumer
products, 11% from food, and the rest from international business.

Procter & Gamble Company (P&G) is an American

multinational consumer products company headquartered
in Cincinnati, Ohio, founded in 1837 by William Procter
and James Gamble. P&G specializes in a wide range of
personal health, personal care, and hygiene products.
These products are divided into several segments,
including Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine
& Family Care. Prior to the sale of Pringles to Kellogg’s, the product portfolio also
included food, snacks, and beverages. David Taylor is the present CEO of P&G.
P&G is known for Ariel & Tide laundry detergent, Gillette razors, Head & Shoulders
shampoo, Pantene hair care products, Oral B inner dental products.

Marico Limited is one of India’s leading multinational

consumer goods companies offering consumer products
and services in the areas of health, beauty, and wellness.
Marico is headquartered in Mumbai, Maharashtra, India,
and has operations in over 25 countries across Asia and
Africa. With its portfolio of brands like Parachute, Saffola,

16
Hair & Care, Parachute Advanced, Nihar Naturals, Mediker, and many others, the
company touches the lives of one in three Indians. The company owns brands in the
categories of hair care, skin care, edible oils, health food, men’s care, and textile
care. In the financial year 2019-20, the company generated a turnover of Rs.7,315
crores. Marico has 8 factories in India located in Pondicherry, Perundurai, Kanjikode,
Jalgaon, Paldhi, Dehradun, Baddi, and Paonta Sahib.

Nestlé India Limited is the Indian subsidiary of Nestlé, a

Swiss multinational company. The company is
headquartered in Gurgaon, Haryana. The company’s
products include food, beverages, chocolate, and
confectionery. The company was founded on 28 March
1959 and promoted by Nestle Alimentana S.A. through a
subsidiary, Nestle Holdings Ltd. As of 2020, the parent
company Nestlé owns 62.76% of Nestlé India. The
company has 9 manufacturing facilities at various locations in India.

Hindustan Unilever Limited (HUL) is an

Indian consumer goods company
headquartered in Mumbai, India. It is a
subsidiary of Unilever, a British company. Its
products include food, beverages, detergents,
personal care products, water purifiers, and
other fast-moving consumer goods like Lux, Surf excel, Rin, Wheel, Clinic Plus, Life
Boy, Close up, Pepsodent, Fair & Lovely, Vim, Dove, Sun silk, Vaseline, Pears, Lack
me. Bru Coffee, Lipton, Tea and Kissan Jam. HUL was founded in 1931 as
Hindustan Vanaspati Manufacturing Co. and renamed Hindustan Lever Limited after
a merger of the separate groups in 1956. The company was renamed Hindustan
Unilever Limited in June 2007.

Himalaya Herbal Healthcare is an Indian multinational

pharmaceutical company founded in 1930 by Mohammed
Manal and headquartered in Bengaluru, Karnataka, India.
It manufactures health products under the name
Himalaya Herbal Healthcare whose products contain
Ayurvedic ingredients. The company is spread across
locations in India, the United States, Middle East, Asia, Europe, and Oceania, while
its products are sold in 106 countries around the world. The company has more than
290 researchers using Ayurvedic herbs and minerals. The company’s flagship
product is a liver medicine called Liv.52, which was first introduced in 1955.Himalaya
Global Holdings Ltd. (HGH), is the parent company of The Himalaya Drug Company
worldwide. It is also the global headquarters of all Himalaya subsidiaries.

17
6. Market Position of Patanjali

Baba Ramdev-promoted Patanjali Ramdev reported a 9 percent jump in its revenue

to Rs 9,872 crore in the financial year 2021 (FY21), while its net profit for the period
grew 14 percent to Rs 485 crore in comparison to FY20, according to financial data
business intelligence platform Tofler. The company had reported Rs 9,089 crore in
revenue in FY21 and Rs 425 crore in net profit.

Its EBITDA (earnings before interest, taxes, depreciation, and amortization) stood at
Rs 1,041 crore.

While the turnover of Patanjali Ayurved in the first year (2007-08) after incorporation
was just Rs. 51 crores, it has reached a turnover of Rs. 9783.81 crores in the
financial year 2020-21 within an approximate span of a decade which is a robust
achievement.

The company in August got a go-ahead from the Securities and Exchange Board of
India (SEBI) for its plans to raise Rs 4,500 crore by launching follow-on public
offering (FPO) for Ruchi Soya. Patanjali Ayurved had acquired the company under
the provisions of the Insolvency and Bankruptcy Code for Rs 4,350 crore in 2019.

The Patanjali Group aims to go debt-free in the next three-four years and the sum
raised through its FPO will mostly go towards paying off Ruchi Soya’s debt of around
Rs 3,300 crore.

Earlier this year, Ruchi Soya had acquired biscuits and noodles units from the parent
company Patanjali Ayurved.

Year Revenue (in crores)

2010-11 ₹100
2011-12 ₹300
2012-13 ₹841
2013-14 ₹1,184
2014-15 ₹2,006
2015-16 ₹8,000
2016-17 ₹10,526
2017-18 ₹9,500
2018-19 ₹8,330
2019-20 ₹30,000

18
19
 7. Patanjali Target Market

Patanjali concentrates primarily on a huge audience of Indians because it is a

swadeshi brand. The company delivers products at extremely low prices and
promotes the Patanjali brand more vividly through Baba Ramdev’s impact on the
general public. Patanjali targets its audience entirely, without any sub-categories.

 Customers from rural areas

 Customers of cities
 Products for an age range from youngsters to gender adults.
 Beloved to customers in North Indian
 Targeting the audience who want a healthy lifestyle by using naturally curated
products

20
8. Distribution Strategy

Patanjali Ayurved Ltd has achieved a

tremendous presence all over the
country in a very short span of time
since its inception in 2006. It started
distributing wide range of its products
through startups which were started by
none other than the followers of Baba
Ramdev. Today, it has more than
47000 retail counters, 3500
distributors, multiple warehouses in 18
states and proposed factories in 6 states. As the group is already operating in
markets like the US, Canada, the UK, Russia, Dubai and some European countries,
it is willing to spread its wings wider and farther. Patanjali Chikitsalayas and Divya
Pharmacies in several cities are also working as an exclusive retail store for Patanjali
products.

Patanjali Ayurveda sells its products through nearly 5,000 outlets. Patanjali also sells
its products online. This enables customers to simply add the products to their carts
and they can buy Patanjali products via COD, online payment etc. which would be
delivered to their doorstep. It has its footprints on some of the railway stations and
airports. Patanjali Ayurveda has tied up with various retail conglomerates like Pittie
Group and Future Group, Reliance Retail, Hyper city. Patanjali Ayurveda has also
started its FMCG expansion in the form of dealership and distribution channels
across the country and expects wider growth in overseas distribution as well.

Patanjali products are widely available in countries like Nepal, Saudi Arabia, UAE,
Middle East, Bangladesh, SriLanka etc.

Patanjali Distribution Strategy

 Patanjali used ADS (Alternative Patanjali distribution System) to create new

demand.
 Patanjali centred to general trade once a sizable consumer base was
generated.
 It also reduces cost by using another Patanjali distribution strategy: Primarily
distribution. By setting up its stores, eliminating wholesalers. It eliminated
wholesalers in the retail space too.
 Part of the profits going to charity
 Gaining Massive Popularity from Yog Guru Ramdev Baba
 Natural & Ayurvedic Products
 Low pricing
 Manufacture of Swadeshi

21
9. Advertising Strategy

Patanjali has considered advertising for its

products as a high priority for driving sales.
The promotion and branding in Patanjali
marketing mix utilizes all media channels
like print, TV, online ads, billboards etc.
Patanjali's brand ambassador is yoga guru
Ramdev Baba, who has a staggering fan
following, which enabled the brand to catapult in the big league within a short span.
The advertisements of Patanjali has been aggressive where they have showcased
the importance of using natural and ayurvedic ways of making products. Their
advertisements have also been under scrutiny as they have alleged that its
competitors have been using harmful products. Patanjali advertisements showcase
their entire product range targeting the audience who want a healthy lifestyle by
using naturally curated products. The massive advertising exercise by Patanjali has
made it one of the fastest growing FMCG companies in India, with annual revenues
in excess of INR 10,000 crores. The brand has good media coverage via news
channels as well, which boosts the reputation & image of the company
“For the first time we have decided to rope in celebrities like actors, cricketers who
have a big fan following to promote Patanjali and Ruchi Soya brands to increase the
reach of our products,” Patanjali founder and brand head Ramdev told the Economic
Times in an interview. “We are in the process of signing the contract with one
cricketer and one Bollywood celebrity which will be finalized in the next few days.”

To date, Baba Ramdev has been the sole face of the brand, appearing in its
marketing campaigns and even on certain packaging. Ramdev has been outspoken
on numerous topics and recently had to assert that he is not against modern
medicine following a controversy with the Indian Medical Association. The business
is also working on transforming its acquisition Ruchi Soya from a commodity
company to a fast-moving consumer goods company.

Patanjali Ayurved has done great research on their target audience and understands
the message they should put across through their advertisements and which
campaign medium is most effective for their strategy.

 Swadeshi ka swabhiman

22
After achieving great success in the FMCG sector, Patanjali has now entered into
the brand apparel segment with its new brand named “Paridhan”.

Invoking the national image of cloth weaving, Patanjali

has made a move on to the textile industry. With the
rising concerns of dependence on other countries for
necessities, and combining itself with the “Make in
India” trend, Patanjali has targetted the most essential
items we all need, clothing. 

 Healthy India banaenge, Patanjali biscuit khaenge

Patanjali has launched its biscuit with the tagline “Healthy India banaenge, Patanjali
biscuit khaenge” which means “India shall be healthy, Patanjali biscuits is what we
shall eat”. Patanjali claims that their biscuits contain zero maida, sugar, and trans
fats, and are healthier than any other
biscuits. Taking a moment marketing spin
at the growing obesity in the 21st century
and sugary food overload, Patanjali
marketed itself as a healthy option for
biscuits. This struck a nerve with the Indian
audience, especially with the 35-year-old+
customer segment, who daily enjoy a
biscuit with their teas as a lifestyle habit.

23
10. Vision and Mission

Vision
Keeping Nationalism, Ayurveda, and Yoga as our pillars, we are committed to create
a healthier society and country. To raise the pride and glory of the world, we are
geared up to serve people by bringing the blessings of nature into their lives. With
sheer dedication, scientific approach, astute planning, and realism, we are poised to
write a new success story for the world.

Mission
Making India an ideal place for the growth and development of Ayurveda and a
prototype for the rest of the world.

24
11. SWOT Analysis

SWOT Analysis is a strategic analysis framework used to evaluate the competitive

position of the company for developing strategic plans. 

SWOT stands for Strengths, Weaknesses, Opportunity and Threats of the

company to assess the internal and external factors, along with present and future
potential.

Strengths

1. Baba
Ramdev: T he
exponential growth
of Patanjali can be
credited to Baba
Ramdev and his
popularity. For a
newly formed
FMCG in India, it would have been impossible to show the kind of growth that
Patanjali has shown in such a short period of time. But the fan following and goodwill
of Baba Ramdev guaranteed that Patanjali grows quickly and becomes a routine
name in the Indian households.

2. Strong patriotism: Patanjali has used the India card to its advantage and has
always marketed that it’s a brand made in India, for Indians. Most of the brands in
India are international brand. Patanjali actively asks Indians to buy India made
products to help the economy of the country. Besides this, the quality of the products
have helped in the fantastic growth of Patanjali.

25
3. Ayurveda and Herbal: The Products that Patanjali offers are made from
Ayurveda and Herbal natural components. The Swadeshi products also have played
an important role in the success of Patanjali. India has never been low on plants or
vegetation and we get a lot of naturally grown medicines in our dense forests. As a
result, India is one of the leaders in Ayurveda.

4. Penetration Pricing: Patanjali products are generally priced at 20-30 % lower

than the competitive brands and thus it becomes impossible for the competitive
brands to compete with Patanjali on price. The company sources the products
directly from farmers and thus cuts on middlemen. Hence, they are able to produce
at lower costs.

5. Strong Distribution channels: Patanjali products are sold through medical

centers such as Patanjali Chikitsalayas and Patanjali Arogya Kendras, non-medical
centers such as Swadeshi Kendras. Patanjali already has 15,000 outlets across
India. Patanjali was earlier criticised for its distribution strategy, but it has now
improved it by distributing through General retail outlets and has recently tied up with
the Future group for distribution through Modern retail. They have now transformed
its weakness into a strength.

6. E-commerce advantage: Patanjali sells very well through the E-commerce

companies and has a lot of packages of products which it sells online. So even
if people are not nearby a Patanjali store, but they believe in Baba Ramdev or want
to purchase Indian products, then they can do so online via E-commerce.

7. Word-of-Mouth Promotion: For a new company especially in the

consumer goods category, a high share of its expenditure goes into advertisements
and promotions. Patanjali followed a word-of-mouth promotion strategy initially and
did not spend much on promotions and advertising. Patanjali depended on over
the Brand loyalty of its customers.

8. Keeping up with the trends: Owned by Babas and Swamis,

Patanjali was supposed to be a conventional Indian company but it
has surprised everyone by bringing in various changes required to be
at par with its contemporary brands. Be it advertising
using celebrities as Brand ambassadors, Entering modern retail or using E-
commerce as a platform. Patanjali has also understood the potential of digital media
and social media platforms and is also spending on these channels.

Weaknesses

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1. Over dependency on Ramdev: For many of its consumers, Patanjali is still
synonymous to Baba Ramdev and hence any actions of Baba Ramdev will have
repercussions on the brand itself. Baba Ramdev’s political affiliations are also well
known and hence if at all he is targeted for any political vendetta, Patanjali will also
suffer.

2. Penetration pricing is not long term: Patanjali might have to compromise on

its pricing strategies if it wants to expand and thus it’s a big challenge for Patanjali. It
cannot sell at such low costs for a very long term. Any company needs profits to
drive more sales and therefore earn more profits. It’s a cycle. But if Patanjali does
not earn much, then it cannot spend much and cannot expand.

3. Product Dependence: While Patanjali has many products in its kitty but a major

part of its revenues are dependent on 5-6 of its main products such as its toothpaste
and shampoo. They need to push the other products more to achieve its ambitious
target.

4. Low margin to distributors: Patanjali offers much lower margins to distributors

and retailers as compared to other consumer goods company, since it is playing a
game of volume and not margins. That’s the reason for it being a demand run
company.

5. Lack of experienced management graduates: Patanjali

does not have a large pool of management graduates and thinks tanks
which can be a problem when they look for expansion throughout the
country or globally.

Opportunities

1. Growing organic sector: Patanjali has been successful in creating awareness

about the benefits of using herbal and natural products which have created a market
for itself. The awareness has spread and the demand is ever growing.

2. Expand Rural: With the portfolio of products that Patanjali has, it has great

potential in the rural market and should look to expand its operations in the vast rural
market of India.

3. Going Global: Patanjali has a great opportunity to expand globally and can look

for Middle East and African nation in the beginning. Various other companies such
as Dabur have already expanded globally and have been successful.

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4. Tie ups: Patanjali has successfully tied up with Future group
and should continue tie up with modern retail chains and increase its
E-commerce sales.

Threats

1. Increasing Competition: FMCG majors such as HUL, Marico, etc. and new

entrants such as Sri Ayurveda are also entering the organic market after the
awareness created by Patanjali which increases the competition in the market.

2. Negative Word-of-Mouth: Any negative word-of-mouth created on social media

platforms can affect its position in the market.

3. Poor reap can affect business: Patanjali is heavily dependent on natural

ingredients and products and hence poor agricultural reap can affect its sales.

4. Price war: A price war is good for consumers but it is detrimental for business.
The longer the price war, the more is the effect on the brand. Companies like
HUL, Colgate and others have been at the top for long. They have deep pockets and
they will naturally respond to Patanjali. Such a price war will have drastic effect on
Patanjali’s profitability, especially because the brand is already selling at very low
margins.

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12. Corporate Social Responsibility

Corporate Social Responsibility (CSR)

refers to strategies that companies put into
action as part of corporate governance that
are designed to ensure the company’s
operations are ethical and beneficial for
society. They have to contribute for social
and environment development. India is first
country to mandate and quantify CSR
expenditure. Government introduced CSR
Policy for nation’s development.

Patanjali is working towards a better nation, healthier society and wealthier farmers.
It personifies the essence of Corporate Social Responsibility because profits of
Patanjali Ayurved Ltd are not for any individual but are for the betterment of the
society.
This theme is reflected in every aspect of their working and management. Their
focus area are education and healthcare.
The total budget for the CSR projects is decided by the CSR Committee in
accordance with applicable provisions of the Act and the CSR Rules.

Activities:

 Acharyakulam
 Kushthrogi
 Research and development
 Patanjali Gramodyog
 Patanjali Food Research

Gau Sanvardhan

India in past had recorded 113 species of cows in the country, unfortunately only 38
of them are left. Patanjali has planned to spend Rs. 500cr on this project. With this
they will be able to improve the breeds of nearly nine crores domestic cows and this
way lost glory of cow will be re-established in the country.

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Poor Relief

The poor, physically and mentally impaired persons, orphans, patients of leprosy,
other helpless persons who were affiliated by calamity were helped by Patanjali in
times of need. Patanjali has also donated crores to the organizations who were
working for the welfare of the poor.

Health

It is mission for Patanjali to realize a disease free India and Patanjali is achieving it
by providing affordable healthcare. Patanjali Arogya Kendra over the country are
serving people with free medical consultation.

Helping Natural calamity victims

Patanjali have adopted some 40-50 kids who have lost their loved ones during
Kedarnath flood in 2013. They are providing free accommodation, free food, free
education and supporting them in every possible way. Similarly, they are doing the
same for such kids affected during Nepal Earthquake in 2015. Likewise, they carries
out social service projects from time to time.

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13. News clipping

‘Shuddh desi swadeshi’ Jeans from Patanjali coming soon

Baba Ramdev’s ‘swadeshi’ jeans will be in line with Indian
culture and tradition, and similar to Indian clothing, Patanjali
CEO Acharya Balkrishna told ET. “Jeans is a western concept
and there are two things we can do with western concepts.
Either boycott them or adopt them but customise them to suit
our traditions. Jeans have become so popular that they cannot
be taken away from the Indian society. Swadeshi jeans will be
Indianised jeans in style, design and fabric,”
Source: Patanjali Website

Patanjali’s Balkrishna enters Forbes rich list with $2.5

billion
SINGAPORE: Yoga guru Ramdev’s close associate Acharya
Balkrishna has entered the annual Forbes list of India’s 100
Richest People at the 48th position with a net worth of $2.5
billion, owing to his 97 per cent holding in Patanjali Ayurved.
However, new-age retailer Flipkart’s co-founders Sachin and
Binny Bansal made a surprise exit from the list.
Source: Patanjali Website

Ruchi Soya Industries Ltd now becomes Patanjali Foods

Ltd
Edible oil firm Ruchi Soya Industries Ltd on Tuesday said the
name of the company has been changed to Patanjali Foods Ltd
with effect from June 24.In 2019, Baba Ramdev-led Patanjali
Ayurved acquired Ruchi Soya for Rs 4,350 crore through an insolvency process.
Source: The Economic Times

Patanjali to cultivate palm oil despite warnings

The Bharatiya Janata Party (BJP) government of Assam has
signed an agreement with Patanjali Foods Limited, formerly
known as Ruchi Soya Industries Limited, to cultivate palm oil
despite environmental experts and politicians warning of the
adverse impact on biodiversity, tribes and species of the Northeast.
Source: News Click

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Work on Patanjali Food Park to kick off in July, may be ready
in a year
By July next year, yoga guru Ramdev-backed Patanjali Ayurveda’s
Rs 1,400-crore food processing park along the Yamuna
Expressway is expected to be ready. Work on Patanjali Food Park,
the largest such project in UP, will begin next month, officials have
said.
Source: The Times of India

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 Chapter 3
Covid Impact Analysis

The covid outbreak was the most disastrous moment for human kind. Every country
in the world saw its repercussions which included loss of life, loss of the society and
even loss for big and small enterprises. The covid hit every sector of the economy.
One such was Patanjali group.

 THE RUCHI SOYA FACTOR

i) Ruchi Soya is India's largest FMCG and manufacturers of edible

oil in India. They operate under the brands Mahakosh, Nutrela, and
Sunrich. 
ii) The droughts in India also had a hard hit on the oilseed industry. They lost
a fortune betting on castor seeds. They also got into trouble with SEBI and
the customers began to flee as well. Ruchi Soya margins continued to
shrink drastically. Due to this Ruchi Soya owed a total debt of 9,075
crores.
iii) In 2019 Patanjali bought out 99 percent of the company and paid off 4000
crores in debt, which is half of the actual debt. The remaining debt was just
written off by the banks. 
iv) On January 27th, 2020, the company relisted on the market.
Shares that were nearly worthless a year ago began trading at Rs 16.5.
Almost unexpectedly, the company's stock price soared by a whopping
9100 percent. Ruchi Soya had gone from Rs 16.5 to Rs.1500 in 5 months,
defying all odds.
v) The reason of this super growth was Ruchi Soya's shares that are
currently trading on the open market are less than 1 percent. Since very
few people own these shares, if the promoters acted in the union, they
could continue to buy and sell them at whatever price they saw fit.
Thus we conclude that even during the pandemic the group successfully
made its group of company a brand and stood by it.

Patanjali Group has achieved a turnover of around Rs 30,000 crore in the fiscal

2020-21, helped by a revenue boost of Rs 16,318 crore from Ruchi Soya.
On the performance of the group's newly acquired firm Ruchi Soya Industries, Yoga
guru Ramdev said, "In Ruchi Soya, we have grown about 24 per cent and in
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Patanjali, we have grown from around Rs 11,000 crore (in FY'20) to Rs 14,000 crore
(in FY'21). We have achieved a growth rate of 10 to 24 per cent in our companies."
Patanjali Natural Biscuits reported a turnover of Rs 650 crore, Ayurveda arm Divya
Pharmacy of Rs 850 crore and food processing arm Patanjali Agro of Rs 1,600 crore
during the fiscal 2020-21, the report further delved. While, transportation wing
Patanjali Parivahan reported a turnover of Rs 548 crore and Patanjali Gramoudyog
Rs 396 crore during the fiscal.
With all the data provided above we can conclude that the group with the help of
transportation wing Patanjali Parivahan and Ruchi Soya, made huge profits as no
production line was hindered nor the transportation line which are essential for the
products of a company.
The reach of patanjali products to the nation was quite feasible and had none or less
hindrances.
The group also introduced coronil a medicine to fight corona which was in deep
controversy over its issuance from WHO and cases filed by IMA, Delhi. Still, the
coronil was consumed heavily. The combined Coronil kit from Baba Ramdev’s
Ayurveda brand Patanjali and its individual components have together recorded
sales of over 85 lakh units in the four months since its launch, company data shows.
The sales total an estimated Rs 241 crore. 

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 CONCLUSION

 
Patanjali is a unique FMCG firm that produces incredible, high-quality household
products at an affordable price. Patanjali places quality first and the company obtains
fantastic results with such a vast dedicated consumer base. For over many years
Patanjali has been on the market and has seen amazing success and growth in
these years. And the company is set to reach higher levels throughout time.
Baba Ramdev has worked hard on Ayurveda and Yoga for years and has to lead
him to develop a successful enterprise. His yoga camps were broadcasting
throughout India, showing him in a positive light. In addition, the Yoga and Ayurveda
camps were a new concern. Since these camps were run free, people began to trust
him more and recognized he wasn’t there for the money. All of this provided a
foundation for the most rapidly developing FMCG Company in India.

Patanjali, being a Swadeshi brand has always been in the limelight because of its
Ayurvedic products. Each of their steps has been cleverly strategized to bring the
best to the brand. Even after facing a few setbacks, the company is standing tall as
ever, being the fastest-growing company in the Indian FMCG sector.

Patanjali is expected to go a long way in the future, only if it manages to keep itself
ahead of competitors. It has a major advantage over other competitors as Baba
Ramdev, a famous Yoga teacher, is the face of the firm.

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 Learnings and Recommendations

1. Patanjali should focus on creating sub-brands for newer product lines with a solid
brand architecture to offset any future risks associated with umbrella brand
“Patanjali”.
2. To make a successful product, Patanjali’s marketing strategy should attract long
term consumers.
3. They can increase their outlets and stores.
4. Regular survey must be made to measure the customer satisfaction.
5. They should bring more varieties of the product to the market.
6. Customer redressal forum is very much needed in the current business scenario.
But it is found that there is no such forum established in Patanjali concern.

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 BIBLIOGRAPHY

1. https://unlistedzone.com/analysis-of-patanjali-an-indian-fmcg-giant-of-baba-
ramdev/
2. https://www.financialexpress.com/industry/as-patanjalis-meteoric-rise-abates-
other-fmcg-majors-pull-up-socks/1404873/
3. http://patanjaliayurved.org/vision-mission.html
4. https://en.wikipedia.org/wiki/Patanjali_Ayurved#Sales_and_distribution
5. https://www.mbaskool.com/brandguide/fmcg/16941-patanjali.html
6. http://patanjaliayurved.org/in-news.html
7. https://www.newsclick.in/assam-patanjali-cultivate-palm-oil-despite-warnings

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