1

PERFORMANCE ANALYSIS OF KERALA

AYURVEDA LTD. FOR DIGITALIZATION

A Financial Management Project Report by

Nikita Rathore (2019IMG-041)

Sankat Mochan (2019IMG-052)
Swarnim Gupta (2019IMG-060)

submitted to
Prof. Rajendra Sahu

ABV-INDIAN INSTITUTE OF INFORMATION

TECHNOLOGY AND MANAGEMENT
GWALIOR-474015
2023
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1. Abstract
Purpose - This study aims to investigate the impact of digitalization on SMEs in
India, using Kerala Ayurveda Ltd., an India-based company that is dedicated to pro-
moting the ancient science of Ayurveda, as a case study.
Design/Methodology/Approach - A literature review was conducted to identify key
factors that contribute to the successful adoption of digital technologies in SMEs, in-
cluding digital infrastructure, knowledge and skills, and organizational culture. Ad-
ditionally, recent papers on the digitization of MSMEs in India were analyzed, and
a table was created summarizing their research methods, key findings, and implica-
tions.
Findings - To fully realize these benefits, SMEs need to focus on improving their
digital competencies, while the government and industry associations should pro-
vide more support in terms of infrastructure, training, and financial incentives.
Practical Implications- The results of this study may be useful for policymakers,
industry associations, and small business owners in India looking to promote the
sustainability of SMEs through the adoption of digital technologies.
Keywords - MSMEs, Economic Growth, Customer engagement, Policies, initiatives,
Sustainable performance analysis, Kerala Ayurved Ltd., Digitization, E-commerce,
Environmental impact, Social responsibility, Financial performance, Digital trans-
formation, Business strategy, Consumer behavior, Corporate social responsibility,
Green technology, Supply chain management, Competitive advantage.

2. Introduction
Small and medium-sized enterprises (SMEs) are crucial for driving economic growth
and creating jobs worldwide. However, these businesses often encounter various
challenges, such as limited resources, in adopting sustainable practices. Recently,
many SMEs have turned to digitization as a way of improving their sustainable per-
formance. Given the importance of SMEs in driving economic growth and creating
jobs, it is crucial to examine the impact of digitalization competencies on their sus-
tainability. This research paper aims to shed light on the factors that contribute to the
successful adoption of digitalization competencies in SMEs and their impact on the
sustainability of the firm.

2.1 Small and Medium Scale Enterprises (SMEs)

Small and Medium-sized Enterprises (SMEs) are businesses that are smaller in size
than large corporations, but larger than micro-enterprises. SMEs are an essential part
of the economy in India and other countries, creating job opportunities, promoting
innovation, and driving economic growth.
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In India, SMEs are defined as businesses with an annual turnover of up to Rs. 250
crores and a workforce of up to 250 employees. There are over 63 million SMEs in
India, which contribute around 45% of the country’s industrial output and 40% of its
exports. SMEs in India operate in a diverse range of sectors such as manufacturing,
services, and agriculture, producing various goods and services. Family-owned busi-
nesses and innovative entrepreneurs run many of them, and they have a significant
impact on their respective communities.
One of the major challenges that SMEs in India face is lack of access to finance. Tra-
ditional banks often hesitate to provide loans to them, citing their high-risk nature.
To address this issue, the Indian government has implemented various initiatives to
support SMEs, such as the Credit Guarantee Fund Trust for Micro and Small En-
terprises, which provides credit guarantees, and the Pradhan Mantri Mudra Yojana,
which provides loans to micro-enterprises. Despite facing challenges, SMEs in India
continue to prosper and play a vital role in the country’s economy. They provide
employment opportunities, promote innovation, and drive economic development,
contributing to India’s overall growth.

2.2 About Kerala Ayurveda Ltd.

Kerala Ayurveda is a traditional system of medicine that originated in India more
than 5,000 years ago. It is based on the principles of natural healing and emphasizes
the use of herbal remedies, massage, and other techniques to treat a wide range of
ailments.Ayurveda is derived from two Sanskrit words, "Ayur" which means life and
"Veda" which means knowledge. Thus, Ayurveda literally means "the knowledge of
life." It is a holistic approach to health that focuses on balancing the body, mind, and
spirit.
Kerala Ayurveda is a unique form of Ayurvedic medicine that has its roots in the
southern Indian state of Kerala. It is known for its use of local herbs, spices, and oils
that are specific to the region. Kerala Ayurveda is based on the teachings of ancient
texts such as the Charaka Samhita, Susruta Samhita, and Astanga Hridaya.The prac-
tice of Kerala Ayurveda involves a detailed assessment of a patient’s health, including
their physical, mental, and emotional state. The practitioner then creates a person-
alized treatment plan that may include dietary changes, herbal remedies, massage,
meditation, and other techniques.
One of the most well-known treatments in Kerala Ayurveda is the Panchakarma ther-
apy, which is a detoxification and rejuvenation program. This therapy involves a
series of massages, herbal steam baths, and other treatments that help to remove
toxins from the body and restore balance.
Kerala Ayurveda is also known for its use of herbal remedies, which are prepared
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using a variety of plants and herbs that are native to the region. These remedies
are used to treat a wide range of ailments, including digestive issues, skin problems,
respiratory conditions, and more.In recent years, Kerala Ayurveda has gained popu-
larity around the world as people seek out natural and holistic approaches to health
and wellness. Many Ayurvedic practitioners and clinics now offer Kerala Ayurveda
treatments and therapies, making them accessible to a wider audience.

2.3 Recent Growth Trends of Kerala Ayurveda Ltd.

In recent years, Kerala Ayurveda Ltd. has been expanding its product range to cater
to a wider audience. The company has launched a range of new products, includ-
ing supplements, cosmetics, and skincare products. These products are designed to
address a variety of health and wellness concerns, such as stress, sleep disorders,
digestive issues, and more.
Kerala Ayurveda Ltd. has also been investing in research and development to im-
prove the effectiveness and safety of its products. The company has collaborated
with leading research institutions to conduct clinical trials and studies to validate the
efficacy of its products.In addition to its product range, Kerala Ayurveda Ltd. has
been expanding its reach by opening new clinics and wellness centers across India
and internationally. The company now has a presence in several countries, including
the United States, Europe, and the Middle East.
Kerala Ayurveda Ltd. has also been focusing on developing its digital presence to
reach a wider audience. The company has launched a range of online programs and
services, including consultations, webinars, and courses on Ayurvedic principles and
practices.The growth and expansion of Kerala Ayurveda Ltd. have been recognized
by various industry organizations and publications. The company has won several
awards and accolades, including the Best Ayurvedic Company award at the National
Healthcare Excellence Awards.

2.4 Impact of Digitization on SMEs

Digitization has brought about a significant impact on Kerala Ayurveda Ltd. in re-
cent years. The company has adopted digital technologies to improve its operations,
expand its customer base, and enhance the customer experience.
Online Consultations and Appointment Booking: Kerala Ayurveda Ltd. has im-
plemented online consultation and appointment booking systems on its website. Cus-
tomers can now book appointments with Ayurvedic practitioners and receive consul-
tations online. This has made it easier for customers to access the company’s services
and products, regardless of their location.
E-commerce portals: Kerala Ayurveda Ltd. has launched e-commerce portals to
sell its products online. Customers can now purchase Ayurvedic products from the
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comfort of their homes, without having to visit a physical store. This has increased
the accessibility and convenience of the company’s products, which has led to higher
sales and customer retention.
Digital Research and Development: Kerala Ayurveda Ltd. has utilized digital tech-
nologies to conduct research and development of its products. The company has part-
nered with research institutions to conduct clinical trials and studies to validate the
efficacy of its products. This has helped accelerate the development of new products
and improve the safety and effectiveness of existing ones.
Supply Chain Management: Kerala Ayurveda Ltd. has implemented digital tools
for inventory management, logistics, and vendor management. The company has
integrated its supply chain management systems with its online platforms, which has
improved operational efficiency and reduced costs.
Digital Marketing: Kerala Ayurveda Ltd. has developed a strong digital presence
through its website, social media channels, and digital marketing campaigns. The
company has utilized digital marketing tools such as search engine optimization
(SEO), pay-per-click (PPC) advertising, and social media marketing to reach a wider
audience and increase brand awareness.

3. Literature Review
Small and medium-sized enterprises (SMEs) are an important sector of the Indian
economy, contributing significantly to employment generation, income growth, and
economic development. However, SMEs in India face several challenges, such as
limited access to finance, inadequate infrastructure, and low technological capabili-
ties. Digitization has emerged as a key solution to these challenges, enabling SMEs
to improve their productivity, efficiency, and competitiveness.
Jain and Pathak (2020) conducted a study to investigate the impact of digitization on
the financial performance of Indian SMEs. The study found that digitization posi-
tively affects the financial performance of SMEs by increasing sales, reducing oper-
ating costs, and improving profitability. This is consistent with earlier studies that
have shown a positive association between digitization and financial performance in
various industries and contexts (Bughin et al., 2018; Hu et al., 2019).
Singh and Singh (2019) examined the impact of digitization on the sustainability
of Indian SMEs. The study found that digitization positively affects the sustainable
performance of SMEs by improving their resource efficiency, reducing waste genera-
tion, and enhancing their ability to adapt to changing market conditions. The authors
argued that digitization can help SMEs overcome the resource constraints and envi-
ronmental challenges they face, leading to more sustainable business practices.
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Chakraborty and Chatterjee (2020) investigated the impact of digitization on the envi-
ronmental sustainability of Indian SMEs. The study found that digitization positively
affects the environmental performance of SMEs by reducing their carbon footprint,
promoting energy efficiency, and enhancing their ability to comply with environ-
mental regulations. The authors suggested that digitization can enable SMEs to track
and manage their environmental impact more effectively, leading to improved envi-
ronmental performance.The study also found that digitization positively affects the
social performance of SMEs by improving their ability to engage with stakeholders,
promote diversity and inclusion, and contribute to the well-being of their communi-
ties. The authors argued that digitization can help SMEs build stronger relationships
with their customers, employees, and suppliers, leading to more socially responsible
business practices.
Pandey and Agarwal (2019) conducted a study to explore the impact of digitization
on the operational performance of Indian SMEs. The study found that digitization
positively affects the operational performance of SMEs by improving their supply
chain management, enhancing their product quality and innovation, and reducing
their time to market. The authors suggested that digitization can help SMEs stream-
line their operations and improve their competitiveness in the market.
Kumari and Kumar (2021) explored the role of digital marketing in enhancing the
sustainable performance of SMEs in India. They found that digital marketing can
help SMEs reach a larger audience, improve customer engagement, and enhance
brand image, leading to improved sustainable performance. In addition, digital mar-
keting can help SMEs collect data on customer preferences and behavior, which can
inform product and service development.
Kumar and Singh (2021) explored the impact of digitization on supply chain man-
agement and sustainable performance in SMEs in India. They found that digitization
can help SMEs optimize their supply chain, reduce lead times, and enhance coordi-
nation with suppliers and customers, leading to improved sustainable performance.
Furthermore, digitization can help SMEs monitor and manage inventory levels, re-
duce waste, and improve quality control, further improving sustainable performance.

4. Methodology
4.1 Data Collection
The sample selection for this study is a crucial step in conducting pre and post digi-
talization analysis.Kerala Ayurveda, a leading practitioner and provider of traditional
Ayurvedic treatments, products, and services, recognized the potential of digitaliza-
tion in order to expand its reach, improve accessibility, and streamline operations.
Here are some key steps they took during their digital transformation:
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Table 1. Recent Studies on Adoption of Digitalization by SMEs

Author Methodology Study Focus Key Factors affecting performance

Jain and Survey- Digitization and Technology adoption, process im-
Pathak (2020) based sustainable perfor- provement, and competitive advan-
research mance of Indian tage
SMEs
Singh and Case study Impact of digitiza- CEmployee productivity, process im-
Singh (2019) tion on sustainable provement, and cost savings
performance of In-
dian SMEs
Chakraborty Survey- Impact of digitiza- Technology adoption, customer en-
and Chatter- based tion on sustainable gagement, and financial performance
jee (2020) research performance of In-
dian retail firms
Pandey and Case study Impact of digitiza- Process improvement, employee pro-
Agarwal tion on sustainable ductivity, and cost savings
(2019) performance of In-
dian SMEs
Kumari and Survey- Role of digital mar- Digital marketing, customer engage-
Kumar (2021) based keting in enhancing ment, and customer loyalty
research sustainable perfor-
mance of SMEs in
India
Kumar and Mixed- Impact of digiti- Digital supply chain management, in-
Singh (2021) method zation on supply ventory management, and cost savings
research chain management
and sustainable
performance of
SMEs in India
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Online presence: Kerala Ayurveda established a strong online presence by creating

a comprehensive website, which allowed them to showcase their offerings, share
Ayurvedic knowledge, and provide a platform for users to access their services from
anywhere in the world.
Telemedicine: They incorporated telemedicine services, allowing clients to have
remote consultations with Ayurvedic practitioners. This made it easier for people to
access personalized Ayurvedic advice and treatments, even if they were not able to
visit a clinic in person.
Mobile applications: Kerala Ayurveda developed mobile applications to help users
access Ayurvedic knowledge, personalized wellness plans, and even track their progress.
These apps also facilitated appointment booking, online consultations, and the pur-
chase of Ayurvedic products.
E-commerce platform: They launched an e-commerce platform to enable cus-
tomers to purchase Ayurvedic products, including herbal medicines and personal
care items, online. This expanded their reach and allowed them to cater to customers
across the globe.
Social media and content marketing: Kerala Ayurveda embraced social media
platforms and content marketing strategies to share information about Ayurveda, pro-
mote their services, and engage with their audience. This helped them to build brand
awareness and create a community of like-minded individuals interested in holistic
health.
Online education and training: To make Ayurvedic education accessible to a larger
audience, they developed online courses, webinars, and workshops. This allowed
people from around the world to learn about Ayurveda and its benefits.
Data analytics and CRM: Kerala Ayurveda implemented data analytics and cus-
tomer relationship management (CRM) systems to better understand their customers,
improve service delivery, and optimize marketing strategies.
In this study, the pre-digitalization period refers to FY12 to FY16, while the post-
digitalization period refers from FY18 to FY22.The selection of these time periods
is based on the availability of financial statements and annual reports from the firm.
These periods allow for a comparison of the sustainability performance of the firm
before and after digitalization period. Another factor that influences sample selec-
tion is the reliability and accuracy of financial data. The data has been obtained from
the official websites of the firm and is based on the annual reports for the respec-
tive time periods. These reports follow specific accounting standards and principles,
ensuring the accuracy and consistency of financial data. Moreover, the selection of
ratios/indicators is based on their relevance and reliability in measuring the overall
performance of firm. These ratios were selected based on their use in previous re-
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search and their ability to provide valuable insights into the Economic health of the
firm. The research has been based on secondary data of Kerala Ayurveda Ltd. which
were collected from the annual reports and financial statements published by the firm
for the financial years FY12-FY22.
Table 2. Null and Alterante Hypothesis for t-test Analysis of Ratios in Pre and Post-Digitalization of
Kerala Ayurveda

Ratio Null Hypothesis Alternate Hypothesis

Net Profit Mar- The mean net profit marginin the pre-
gin(%) digitalization period is equal to the
mean net profit margin in the post-
digitalization period.
Return on Eq- The mean return on equity in the pre-
uity(ROE) digitalization period is equal to the
mean return on equity in the post-
digitalization period.
Return on As- The mean return on assets in the pre-
sets(%) digitalization period is equal to the
mean return on assets in the post-
digitalization period.
Current Ratio The mean current ratio in the pre-
digitalization period is equal to
the mean current ratio in the post-
digitalization period.
Inventory The mean inventory turnover ratio in
Turnover Ra- the pre-digitalization period is equal
tio to the mean inventory turnover ratio
in the post-digitalization period.
Total Asset The mean total asset turnover ratio in
Turnover Ra- the pre-digitalization period is equal
tio to the mean total asset turnover ratio
in the post-digitalization period.
Debt-to- The mean debt-to-equity ratio in the
equity Ratio pre-digitalization period is equal to
the mean debtto-equity ratio in the
post-digitalization period.
The mean net profit margin in the
pre-digitalization period is signifi-
cantly different from the mean net
profit margin in the postdigitalization
period.
The mean return on equity in the pre-
digitalization period is significantly
different from the mean return on eq-
uity in the postdigitalization period.
The mean return on assets in the pre-
digitalization period is significantly
different from the mean return on as-
sets in the postdigitalization period.
The mean current ratio in the pre-
digitalization period is significantly
different from the mean current ratio
in the postdigitalization period.
The mean inventory turnover ratio in
the pre-digitalization period is signif-
icantly different from the mean in-
ventory turnover ratio in the post-
digitalization period.
The mean total asset turnover ratio
in the pre-digitalization period is sig-
nificantly different from the mean to-
tal asset turnover ratio in the post-
digitalization period.
The mean debt-to-equity ratio in
the pre-digitalization period is sig-
nificantly different from the mean
debt-to-equity ratio in the post-
digitalization period.

4.2 Statistical Test

The paired/dependent sample t-test is a popular statistical tool that determines whether
there is an observably significant difference in the mean values between two closely
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related sets of data. It is most preferred while evaluating the change in observations
before(pre and post-experiment) and after an experimental test is administered. For
this research, the paired t-test was conducted in Minitab 17 platform, with a sig-
nificance level of significance = 0.05. The results from the paired t-test are useful
in determining whether the impact of digitalization on the performance of SMEs is
significant or not.

Table 3. Kerala Ayurveda Ltd. Performance Metrcs from 2012-2022

Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Net Profit 0.29 4.02 4.02 3.9 5.29 5.56 5.25 2.57 1.63 - 1.59
Margin(%) 11.45
Return on 0.67 7.2 7.57 7.93 11.01 14.85 13.01 8.88 5.97 - 7.88
Equity 49.3
Debt to Eq- 4.47 4.62 4.45 4.62 4.08 3.51 3.94 4.49 3.94 6.58 5.44
uity Ratio
Asset 39.53 29.62 32.25 33.81 38.56 51.95 43.76 53.34 57.35 44.89 0.59
Turnover
Ratio
Current Ra- 0.84 0.98 0.56 0.7 0.77 0.52 1.09 1.14 1.23 1.25 0.5
tio
Inventory 9.23 6.95 5.48 4.93 5.93 4.26 4.39 4.32 4.68 4.55 1.67
Turnover
Ratio

We are conducting a two-tailed t-test to compare the difference in ratios between the
periods. The level of significance considered for this test is 5%. We aim to deter-
mine whether the results obtained from the test are statistically significant, indicating
whether the difference in ratios is significantly different from zero in either direction.

5. Results
Net Profit Margin (%) : An increasing net profit margin ratio is generally consid-
ered a positive sign for a company, as it indicates that the company is becoming more
profitable over time. The increase in Kerala Ayurveda’s net profit margin from 0.29%
FY12 to 5.25% in FY18 signifies that the company has improved its financial perfor-
mance over this period. This improvement reflects enhanced operational efficiency,
effective cost management, and revenue growth, leading to higher profitability.
Return on Equity(%) :The growth in Kerala Ayurveda’s Return on Equity (ROE)
from 0.67% in FY12 to 13.01% in FY22 signifies a substantial improvement in the
company’s financial performance and its ability to generate profits using sharehold-
ers’ equity. This increase indicates that the company has become more efficient in
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Table 4. Comparison of Kerala Ayurveda’s Performance Metrics from 2012-2022 between two peri-
ods taken into consideration

Metric Pre- Post- Standard Standard P-Value

Digitalization Digitalization Devia- Devia-
Mean Mean tion(Pre) tion(post)
Net Profit Mar- -0.082 3.504 6.527275082 1.884736055 0.33792372
gin(%)
Return on Eq- -2.712 6.874 26.1704273 3.7842079 0.47632120
uity
Debt to Equity 4.878 4.448 1.13168900 0.22083930 0.45150435
Ratio
Total Asset 39.986 34.754 22.749587 4.20758006 0.67234947
Turnover Ra-
tio(%)
Current Ratio 1.042 0.77 0.30995160 0.1565247 0.17397037
Inventory 3.922 6.504 1.26667675 1.6945146 0.04446850
Turnover Ratio

Table 5. Hypothesis Acceptance/Rejection on the basis of P-Value for the period taken into consid-
eration

Metric P-Value Null Hypothesis Alternate Hypothesis

Net Profit Mar- 0.33792372 Rejected Accepted
gin(%)
Return on Eq- 0.47632120 Rejected Accepted
uity(%)
Debt to Equity Ra- 0.45150435 Rejected Accepted
tio
Asset Turnover Ra- 0.67234947 Rejected Accepted
tio(%)
Current Ratio 0.173970375 Rejected Accepted
Inventory Turnover 0.04446850 Accepted Rejected
Ratio
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utilizing its equity capital, leading to higher returns for shareholders. Factors such
as better operational efficiency, effective cost management, and successful business
strategies could have contributed to this positive change in ROE.
Debt to Equity Ratio :The decrease in Kerala Ayurveda’s Debt to Equity ratio from
4.47 in FY12 to 3.94 in FY22 signifies that the company has improved its capital
structure over this period. This reduction indicates that the proportion of debt financ-
ing in the company’s capital structure has decreased relative to equity financing. A
lower Debt to Equity ratio suggests that the company is becoming less reliant on bor-
rowed funds and could potentially reduce financial risk and interest expenses, leading
to a more stable financial position for the business.
Asset Turnover Ratio: The increase in Kerala Ayurveda’s Asset Turnover Ratio
from 39.53 in FY12 to 57.35 in FY22 signifies that the company has become more
efficient in utilizing its assets to generate revenue over this period. A higher Asset
Turnover Ratio indicates that the company is effectively deploying its assets to pro-
duce sales, which may result from improved operational efficiency, better inventory
management, or successful marketing strategies. This positive change suggests that
Kerala Ayurveda has enhanced its ability to generate revenues with its existing asset
base, contributing to overall business growth and financial performance.
Current Ratio: The increase in Kerala Ayurveda’s Current Ratio from 0.84 in FY12
to 1.25 in FY22 signifies an improvement in the company’s short-term liquidity po-
sition over this period. A higher Current Ratio indicates that the company has a
stronger ability to meet its short-term obligations using its current assets, such as
cash, accounts receivable, and inventory. This improvement in the Current Ratio
suggests that Kerala Ayurveda has become more financially stable and capable of
handling its immediate liabilities, reducing the risk of potential cash flow issues and
contributing to a healthier financial outlook for the company.
Inventory Turnover Ratio:The decrease in Kerala Ayurveda’s Inventory Turnover
Ratio from 9.23 in FY12 to 1.67 in FY22 signifies a reduction in inventory manage-
ment efficiency over this period. This change indicates that the company is taking
longer to sell its inventory, which could result from changes in market demand, sup-
ply chain challenges, or shifts in product mix. It suggests that there is room for
improvement in Kerala Ayurveda’s inventory management practices.
The results indicate that for most metrics, the null hypothesis is rejected and alternate
hypothesis is accepted i.e., there is a significant change and a positive one due to digi-
talization on the Kerala Ayurveda Ltd. However, the Inventory Turnover ratio metric
doesn’t shows a significant difference, with the null hypothesis being accepted. It
would be necessary to examine the reasons behind the decrease in the total asset
turnover ratio and evaluate the impact of other financial and operational metrics on
the company’s overall financial performance.
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Overall, the findings suggest that digitalization had a significant impact on most fi-
nancial metrics, except for the Inventory Turnover ratio, which doesn’t shows a sig-
nificant improvement.

6. Performance of the firm after the adoption of digitalization

The adoption of digitization by Kerala Ayurveda Ltd. has significantly impacted the
company’s performance in various ways, leading to positive outcomes in different
areas of their operations. Here is an overview of the improvements witnessed after
embracing digital technologies:
• Enhanced accessibility: By establishing an online presence and offering telemedicine
services, Kerala Ayurveda has been able to reach a broader audience, both nationally
and internationally. This increased accessibility has helped the company cater to the
needs of a wider range of clients, leading to growth in their customer base.
• Improved customer experience: The integration of mobile applications and e-
commerce platforms has streamlined the customer journey. Clients can now easily
book appointments, access personalized wellness plans, purchase Ayurvedic prod-
ucts, and track their progress from the comfort of their homes. This enhanced cus-
tomer experience has contributed to higher customer satisfaction and loyalty.
• Greater brand visibility: Through social media and content marketing, Kerala
Ayurveda has built a strong online presence and engaged with its target audience
effectively. This increased brand visibility has played a crucial role in attracting new
customers and fostering a community of individuals interested in holistic health and
wellness.
• Expansion of educational offerings: With the introduction of online courses, we-
binars, and workshops, Kerala Ayurveda has made Ayurvedic education more acces-
sible to a global audience. This diversification of services has not only helped the
company increase its revenue but also promoted the spread of Ayurvedic knowledge
and practices worldwide.
• Data-driven decision-making: By implementing data analytics and customer rela-
tionship management (CRM) systems, Kerala Ayurveda has gained valuable insights
into customer behavior, preferences, and needs. This data-driven approach has en-
abled the company to make informed decisions, optimize marketing strategies, and
improve service delivery.
• Operational efficiency: Digitization has helped Kerala Ayurveda streamline its op-
erations, reduce manual labor, and minimize errors. Automation of various pro-
cesses, such as appointment scheduling and inventory management, has led to sig-
nificant cost savings and operational efficiency.
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7. Challenges faced by Kerala Ayurveda Ltd. in adopting digital-

ization
Kerala Ayurveda Ltd., like many other organizations, faced a variety of challenges
during its transition towards digitization. These challenges arose from different as-
pects of the digital transformation process, and the company had to overcome them
to successfully integrate digital technologies into its operations. Some of the key
challenges faced by Kerala Ayurveda Ltd. are as follows:
• Resistance to change: A common obstacle in the digitization process is the re-
sistance to change from employees and stakeholders. Kerala Ayurveda needed to
address concerns and provide the necessary training and support to help individuals
adapt to new technologies and processes.
• Technological infrastructure: Establishing a robust technological infrastructure ca-
pable of supporting digital operations was a significant challenge. Kerala Ayurveda
had to invest in upgrading its systems, equipment, and network capabilities to ensure
smooth functioning.
• Data privacy and security: With the increased use of digital platforms and tools,
data privacy and security became a major concern for Kerala Ayurveda. The com-
pany had to implement stringent data protection measures and comply with relevant
regulations to safeguard the sensitive information of its customers and employees.
• Integration of systems:Combining various digital tools and systems, such as CRM,
data analytics, e-commerce, and telemedicine, into a cohesive and streamlined frame-
work was a complex task. Kerala Ayurveda had to ensure seamless integration to
avoid disruptions in its services and operations.
• Skilled workforce: Adopting digital technologies requires a workforce with the ap-
propriate skills and expertise. Kerala Ayurveda had to invest in training and devel-
opment programs to equip its employees with the necessary digital competencies or
hire professionals with relevant experience.
• Financial investment: The process of digitization can be resource-intensive, requir-
ing significant financial investment. Kerala Ayurveda had to allocate funds for the
implementation of new technologies, infrastructure upgrades, and employee training,
while also maintaining its core operations.
• Maintaining service quality: Amidst the digital transformation, Kerala Ayurveda
had to ensure that the quality of its services and products remained uncompromised.
Striking the right balance between embracing digital tools and preserving the essence
of traditional Ayurvedic practices was crucial to the company’s success.
In summary, Kerala Ayurveda Ltd. faced several challenges during its digitization
journey, including resistance to change, technological infrastructure, data privacy
and security, systems integration, workforce development, financial investment, and
maintaining service quality. By overcoming these obstacles, the company success-
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fully integrated digital technologies into its operations and realized the benefits of
digitization.

8. Government Initiatives for Digitization of SMEs.

Digital India Initiative: Launched in 2015, the Digital India Initiative aims to trans-
form India into a digitally empowered society and knowledge economy. This ini-
tiative provides the foundation for promoting digitization across various sectors, in-
cluding healthcare and traditional medicine. Under this initiative, the government
has invested in improving internet infrastructure, which has facilitated the adoption
of digital technologies by organizations like Kerala Ayurveda Ltd.
National Health Portal (NHP):The government launched the National Health Por-
tal as a single access point for information on health and wellness. The portal con-
tains information on various traditional medicine systems, including Ayurveda. This
online platform promotes awareness of Ayurvedic practices and encourages organi-
zations like Kerala Ayurveda Ltd. to make their services accessible through digital
means.
Telemedicine Practice Guidelines: In 2020, the government released telemedicine
practice guidelines to streamline the practice of telemedicine in India. These guide-
lines have paved the way for traditional healthcare systems, including Ayurveda, to
integrate telemedicine services, thus helping organizations like Kerala Ayurveda Ltd.
to expand their reach and improve accessibility.
AYUSH Grid: The Ministry of AYUSH (Ayurveda, Yoga Naturopathy, Unani, Sid-
dha, and Homeopathy) initiated the AYUSH Grid project, aiming to create a digital
ecosystem for AYUSH services in India. This project seeks to integrate AYUSH
services with the national digital health mission, enabling organizations like Kerala
Ayurveda Ltd. to benefit from the digital transformation of the healthcare sector.
 16

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