Fina Project Report of Nishat K

Department of Collegiate Education
Shri Mahadevappa Basalingappa Halli
Government First Grade College

Annigeri- 582201 (Dist: Dharwad)
Telephone: 08380-222188 E-Mail: gfgcang@gmail.com Website: http://gfgc.kar.nic.in/annigeri
Block-A Block-B Block-C
A Project Report On
“Financial Analysis of Patanjali Food Ltd.”
A Project report submitted to Karnatak University Dharwad in
partial fulfillment for the degree of
Bachelor Degree of Commerce
Submitted by
Nishat M Khuddannavar
B.Com Final Year
(UUCMS Reg No:U02AN21C0049)
Submitted to
Dr. Fakeerappa Ani
Associate Professor
Project Guide
Department of Commerce
Shri. M.B.Halli Government First Grade College,
Annigeri-582201
2023-24
Karnatak University Dharwad.
Shri Mahadevappa Basalingapp Halli
Government First Grade College,
Annigeri-582201, Dist:Dharwad
CERTIFICATE
This is to certify that the project report entitled “Financial Analysis
of Patanjali Food Ltd” presented by Nishat M Khuddannavar B.Com Final
year (UUCMS Reg No:U02AN21C0049) is an authentic work carried out by
her under my guidance and supervision in partial fulfillment of the Bachelor
of Commerce of Karnatak University, Dharwad. The report or any part of it
has not been previously presented for the award of any degree, or other
similar title to any university.
Internal Project Guide : Principal
Dr. Fakeerappa Ani
External Project Guide:
Prof Basavaraj Soodi
Date:
Place: Annigeri
Acknowledgement
I sincerely acknowledge the help I received from various persons
and sources in collecting data and information in completing this
satisfactory project
The entire report owes it credit for the solarity, guidance,
encouragement rendered by our respected internal guide,
Dr.Fakeerappa Ani who give his guidance, support, encouragement and
his valuable suggestion throughout the project report which was very
essential for me to make this report a successful one. My sincere thanks
to him with gratitude.
I am very much grateful for giving me an opportunity to do this
project in their organization and for their valuable guidance in successful
completion of the project.
Last but not least I would like to thank all the principal, teaching and
non-teaching faculty of Shri Mahadevappa Basalingapp Halli
government first grade college, Annigeri-582201 for helping me directly
or indirectly during this project.
(Nishat M Khuddannavar)
Declaration
I Nishat M Khuddannavar bearing university UUCMS No.
U02AN21C0049 hereby declare that project work carried out by me
under the guidance and supervision of Dr.Fakeerappa Ani Associate
professor of commerce
This project report is submitted to the Karnatak University Dharwad
in partial fulfillment of the requirement for the award of Bachelor of
Commerce degree during the year 2023-24.
Place: Annigeri Signature
Date: (Nishat M Khuddannavar)

List of Table
Table No Title Page No
1.1 FMCG Sector 3
1.2 Top 10 FMCG companies of India 4
The liquidity, Profitability and

3.1 26
Efficiency Ratio of the company
Analysis for Current Assets & Current

3.2 Liabilities 27
3.3 Assets & Liabilities of the company 28
3.4 Trend value of the company 29
3.5 EBIT and PAT of the company 29

A Project Report on Financial Analysis of Patanjali Ltd
Chapter – I
INTRODUCTION
The present chapter comprises two major parts. The first part focuses on the theoretical
framework of the FMCG Sectors and the second part on the research design. These parts are
presented in the following paragraphs in detail.
1.1: INTRODUCTION
FMCG SECTORS
Fast-moving consumer goods are products that sell quickly at relatively low cost. These
goods are also called consumer packaged goods.
FMCG items are those items which have short life expectancy, which are utilized for brief
time and are supplanted inside days, week, and month or inside a year. Since FMCG items are
supplanted quickly they are having high market demand. They work at a lower edge. A noteworthy
bit of month to month spending plan distributed on these items. The business is continually
stretching out and growing new items to improve buyer's involvement. Real players in FMCG
enterprises are HUL, ITC, Nestle India, Dabur and P&G. The major FMCG fragments are-close
to home care, sustenance and drink, family care, tobacco and oral care. The Nourishment fragment
is the main portion in the FMCG part. Taste and inclination of clients are changing quickly so the
organizations are embracing creative processes because of mechanical improvement to match
current clients' necessity so there are gigantic open doors in the area. Additionally we try to gain
Shri.Mahadevappa Basalingapp Halli Government First Grade College, Annigeri-582201 [Page 1]
an understanding of why any discrepancies exist and whether they can be explained by the nature
of emerging markets as well as the characteristics of the FMCG industry.
Major Segments of Fast-Moving Consumer Goods Markets
The three major segments of FMCG markets are
▪ Personal care and household products (skin care, oral cares, perfumes, paper products,
hair care, cosmetics etc).
▪ Food and beverages products(dairy products, beverages, soft drinks, ice creams, snacks,
processed fruits, bakery products, etc).
▪ Health care (OTC products etc). Fast Moving Consumer Goods are inexpensive products
that require little shopping efforts
2. These are non-durable products which are sold in packaged forms. These products are
purchased by the end-consumer in small quantities and frequently. The main FMCG segments can
be classified as Personal Care, Household care, Branded and Packaged food and Tobacco.
1. Personal Care: It consists of oral care; hair care; skin care; personal wash (soaps);
cosmetics and toiletries; deodorants; perfumes; paper products (tissues, diapers, sanitary); shoe
care etc.
2. Household Care: It comprises of fabric wash (laundry soaps and synthetic detergents);
household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides
and mosquito repellants, metal polish and furniture polish).
3. Branded and Packaged Food and Beverages: It consists of health beverages; soft drinks;
staples/cereals; bakery products (biscuits, bread, cakes); snack food; chocolates; ice cream; tea;
coffee; processed fruits, vegetables and meat; dairy products; bottled water; branded flour; branded
rice; branded sugar; juices etc.
4. Spirits and Tobacco: An exact product-wise sales break up for each of the items is
difficult.

1.2:EVOLUTION OF FMCG SECTOR:

Table 1.1: Shows the FMCG Sector
1950-1980 1980-1990 1990-2016
 limited investment  increase product availability  interest of foreign company
 low purchasing power  increase competition in India
 government favoring  Increase media penetration and  major factor in Indian
of the small-scale improved advertisement.  major factor in Indian
sector economy
 expected growth rate 12%
1.3:CHALLENGES IN FMCG SECTOR:

India‟s FMCG market is highly fragmented which is a contrast to that in U.S where it is
dominated by a few big players. Therefore, launching and growing market share around a product
poses tremendous challenges. Initially a huge amount of money is invested for promotion and
advertising and image building. This is very important for a market like in India where there are
many players for the same product. Also the Indian population wants a better return value for
their investment. So the game really lies in setting up a price point. Setting up logistics and
distribution chains also possesses difficult challenges which are being tackled by constructing
and increasing the existing network of railways and roadways and other modes of transportation
for easy transportation for goods throughout the country.

Table 1.2: Top 10 FMCG companies of India 2022

Providing every According Providing
As per By
house hold with to the brand different
Ran higher As per Revenue
exactly the value products for the
k consumption Revenue &
product India and revenue use of the
rate Income
wants. earnings customer
Hindustan Hindustan Hindustan Hindustan Hindustan
1 ITC Limited
Unilever Unilever Unilever Limited Unilever Unilever
Limited Patanjali
Limited Colgate-
Limited Hindustan Limited
2 ITC Limited Colgate-Palmolive ITC Limited
Ayurved Palmolive Unilever
Dabur India Britannia
Limited
3 ITC Limited ITC Limited ITC Limited Amul
Ltd Industrie
Britannia s Limited
4 Nestle India Nestle India Nestle India Nestle India Dabur India Ltd
Industries
Godrej Dabur India Britannia
5 Godrej Group Parle Agro Parle Agro
Group Ltd Industries
Britannia Britannia Britannia Marico Limited
6 Parle Agro Marico Limited
Industries Industries Industries Limited
Dabur India
Limited Limited Limited Patanjali
7 Amul Marico Limited Marico Limited Pidilite Industries
Ltd Ayurveda
Pidilite Tata Procter & Godrej
8 Procter & Gamble Godrej Group
Industries Global Gamble Group
Patanjali Marico
Beverages GlaxoSmith
9 Godrej Group Godrej Group Parle Agro
Ayurved Limited Kline
Colgate Colgate
10 Haldiram‟s Amul Amul Colgate Palmolive
Palmolive Palmolive
Source: R.Jayanthi, D. (2017) [12]. ast Moving Consumer Goods (FMCG) Sector in India: A
study. International Journal of Multidisciplinary Research and Development, 91-97.

1.4:FAST MOVING CONSUMER GOODS INDUSTRY – AN OVERVIEW

GROWING DEMANDS
 Rising incomes and growing youth population have been key growth drivers of the sector
 Brand consciousness has also aided demand.
 India‟s consumer spending is expected to increase to US$ 3.6 trillion by 2020 and India‟s
contribution to global consumption is expected to more than double to 5.8 per cent by 2020.
 Tier II/III cities are witnessing faster growth in modern trade.
1.5:ATTRACTIVE OPPORTUNITIES
 Low penetration levels in rural market offers room for growth
 Disposable income in rural India has increased due to the direct cash transfer scheme
 Exports is another growing segment
 E-commerce companies like Amazon are strengthening their business in FMCG sector, by
positioning their platform pantry as front line offering to drive daily products sales.
Since it's incorporation in 1986, Patanjali Foods Limited (formerly known as Ruchi Soya
Industries Limited) has evolved as an integrated player in the edible oil business with a presence
across the entire value chain, from farm to fork with secured access to palm oil plantations in India.
Today they feature among the top FMCG players as one of the leading manufacturer & marketer of
healthy range of Edible Oils and a Pioneer of Soya Foods in India. It is also one of the largest palm
plantation companies in India.
One of India‟s leading Fast Moving Consumer Goods (FMCG) and Fast Moving Health
Goods (FMHG) Company, Patanjali Foods has been at the forefront of driving consistent and
robust growth through its well-recognised brands across the country. Their manufacturing facilities
are strategically located, giving us the advantage of scale, efficiency and cost-effectiveness.
A large FMCG and FMHG focused conglomerate, Patanjali Foods has a diversified portfolio of
quality products that are crafted to serve goodness to Indians on a platter, and to nurture their well-
being. Its brand proposition is driven by its manufacturing excellence and a strong distribution
reach. With the health and wellness of the consumers at heart, they continue to expand their
portfolio of quality products, packed with nutritive goodness

2. RESEARCH DESIGN
2.1 NEED FOR THE STUDY: The need for studying the financial performance of Patanjali
Foods Limited includes:
 Evaluation of Performance: Assessing the company's financial health, profitability, and
growth.
 Investment Decisions: Providing insights for investors, analysts, and stakeholders to make
informed decisions.
 Industry Comparison: Benchmarking Patanjali Foods' performance against industry peers
and competitors.
 Strategic Planning: Identifying areas for improvement and informing strategic decisions to
drive growth and profitability.
 Risk Assessment: Analyzing financial risks and opportunities to mitigate potential threats.
 Stakeholder Interests: Meeting the information needs of shareholders, creditors, and other
stakeholders.
 Compliance: Fulfilling regulatory requirements and ensuring transparency in financial
reporting.
2.2 SCOPE OF THE STUDY :The study entitled “An Analytical Study of Financial
Performance of Patanjali Foods Ltd” isto analyze the financial performance of Patanjali Foods Ltd.
for the last 5 years (from March, 2018 to March, 2022).
This study is based on the financial position of the firm by using Ratio analysis,
Correlation analysis and Trend Analysis. Financial statements help the management to analyze
profit, solvency, liquidity and efficiency etc. This analysis will give the true picture of the
financial performance of the company. This study will help the management to take managerial
decisions and to understand the new possibilities.
This study will also help to conduct further researches in financial areas and it will also
helps for taking financial decisions by other corporate too

2.3 OBJECTIVES OF THE STUDY: Although the primary objective of the study is to
evaluate the financial performance of Patanjali Foods Limited for the period of March 2018 to
March 2022, the specific objectives of the study are presented below.
 To trace the history and profile of the Patanjali Foods Limited.

 To analyze the relationship of current assets & current liabilities during the period of
March 2018 to March 2022.
 To know the overall profitability position of Patanjali Foods Limited.
 To compare the balance sheet and income statements of the company within the above
period.
 To find out the trend of income of past five year using trend analysis and projecting
the
future income.
2.4 RESEARCH METHODLOGY: Research methodology deals with the various process
of the research idea in to research action. The adopted methodology for the study is the various
tools, which are essential to analyze critical financial position of the firm. This research is
descriptive and quantitative in nature as it is studying the financial status from March, 2018 to
March, 2022 of the Patanjali Foods Ltd. The yearly financial data of Patanjali Foods Ltd were
collected from various websites. So, data collection for this study is secondary. The research design
applicable for the proposal study is analytical. For the data analysis purpose Current Ratio, Quick
Ratio, Correlation Analysis and Time Series Analysis were used and compared
2.5 LIMITATIONS OF THE STUDY: The present study is undertaken subject to the
following limitations.
The study is based on historical data, which has been carried out for the period of five years
(from March, 2018 to March, 2022) and it is not sufficient enough to analyze the entire aspect of
the company. Change in the book keeping procedures by a firm may often mislead the financial
analysis. The changes in the price level are not considered.

2.6 ORGANISATION OF THE STUDY: The present research study is divided into four
chapters which are arranged on a logical sequence. The brief description of the chapters are given
below.
The first chapter deals with the two main aspects. In the first part, the historical
background of the evolution and development of company has been covered. The second part
deals with the research design of the study covering different technical aspects of research such as
the need for the study, statement of the problems, objectives, research methodology, limitations,
and chapter scheme of the study, etc..
The second chapter presents a brief profile of the company selected for the study.
The third chapter throws light on the analysis and interpretation of data relating to the
financial aspect of patanjali food ltd .
The fourth and last chapter presented the entire study‟s findings, suggestions and
conclusions. The references have been place at the end.

Chapter – II
PROFILE OF THE COMPANY
PATANJALI
Patanjali Ayurved is an Indian multinational consumer packaged goods company based in

Haridwar, India. It was founded by Baba Ramdev and Acharya Balkrishna in 2006. Its registered
office is located in Delhi, with manufacturing units and headquarters in the industrial area of
Haridwar. The company manufactures cosmetics and food products.
Foundation of Brand Patanjali and Patanjali Ayurved

It all started in the year 1995 when Baba Ramdev established Divya Yog Mandir Trust with the
help of Acharya Balkrishna and Acharya Karamveer under the guidance of Swami
Shankardev ji. The trust mission was to put Yoga and Ayurveda on the world map. With the
aim of popularizing Yoga, BabaRamdev started teaching Yoga through small camps and shivirs.
The breakthrough moment came in the year 2002 when Sanskar, a spiritual channel in Hindi,
signed Baba Ramdev for its morning Yoga program. The program was a hit. Next year in 2003,
the rival channel of Sanskar, Aastha signed up Baba Ramdev for its 5 am Yoga program titled
“Divya Yog ''. This program made Baba Ramdev a household name across the country. This
also gave a big boost to Baba Ramdev‟s Yoga Shivirs/Camps (Ramdev, Wikipedia) A typical

Yoga Shivir of Baba Ramdev comprises of Yoga and Pranayama postures with BabaRamdev
explaining the benefits of each of those postures, the benefits of embracing Ayurved, the
testimonials of people who got cured from terminal illnesses by practicing yoga and pranayama,
singing patriotic songs and above all Baba Ramdev explaining ill effects of the MNCs and their
products on the Indian economy and how they are looting India and exploiting Indian populace. It
is estimated that around 70 million people have been touched by Baba Ramdev through his Yoga
Shivirs and experts assume this number to rise to 200 million, going forward. The live telecast
of Yoga Shivirs was instrumental in building the Brand Patanjali, Yoga, Ayurved and above all
Baba Ramdev. Both Baba Ramdev and Acharya Balkrishna were working with a single minded
focus to restore the original place of Yoga and Ayurved as described in the Indian scriptures and
ethos. In 2006, Baba Ramdev and Acharya Balkrishna established “Patanjali Yogpeeth Trust”. A
landmark organisation fostering
the cause of Yoga, Pranayama and Ayurveda. This further strengthened the brand Patanjali.
Patanjali Yogpeeth Trust is considered to be an organization which laid the foundation for
Patanjali Ayurved Ltd to grow at a rapid pace. The basic objective of Patanjali Yogpeeth Trust is
to spread the awareness of Yoga, help the economically weak section of society by providing them
free treatment of diseases and to perform cutting edge Research and Development in Ayurved.
Patanjali Yogpeeth Trust is located on Delhi-Haridwar highway in a sprawling campus of 100
acres. It employs around 200 doctors and has a huge treatment facility through which ayurvedic
treatment is provided to the economically weaker sections of the society. It is now a multinational
organization with its branch offices located in countries like the US, UK, Canada, Nepal etc.
Through Patanjali Yogpeeth Trust Baba Ramdev has touched millions of lives till date.Baba
Ramdev and Acharya Balkrishna have established a number of institutions since they established
Divya Mandir Yog Trust. These institutions have also contributed to the success of Patanjali
Ayurved Ltd by providing raw material, manpower, technological knowhow etc. Some of these
institutions include:
● Patanjali Yogpeeth Trust

● Patanjali Ayurved College
● Patanjali Chikitsalaya
● Yoga Gram
● Goshala
● Patanjali Herbal Botanical Garden
● Organic Agriculture Farm
● Patanjali Food and Herbal Park Ltd
In 2006 Baba Ramdev and Acharya Balkrishna established Patanjali Ayurved to provide
products and other ayurvedic medicines to its patients. In 2012 the duo decided to unlock the
potential of Patanjali Ayurved by expanding it into the mainstream Indian retail sector.
Patanjali has been widely considered as a game changer in the Indian market. What started
as Patanjali Ayurveda Ltd. (PAL), a small pharmacy, underwent an evolutionary transformation
and accelerated its growth. The company became a dominating name in the Indian FMCG (Fast
Moving Consumer Goods) sector, also known as CPG (Consumer Packaged Goods). The
company has revolutionized the Indian market by creating a society that focuses on Yoga and
Ayurveda as a form of natural living.
The company has a diversified product range. These include biscuits, noodles, ghee,
footwear, apparel, and more. Its operational capacity consists of 15,000 stores, 100 mega-marts,
and 5000 distributors.
Baba Ramdev was ranked as the 27th “Most Creative Business People of 2016” by the
Fast Company Business Magazine. Also, Acharya Balkrishna, its current CEO, according to
Forbes, ranks at 25th position in India‟s 100 richest people list in 2019 with a net worth of $5.1
Billion.
They also provided Ayurvedic medicines through the Divya Pharmacy outlets. After
providing their services in the Ayurvedic Medicines niche for around 6 years, in the year 2012,
Baba Ramdev & Acharya Balkrishna extended Patanjali Ayurved Limited into Indian
Mainstream Retail Sector.
Divya Pharmacy‟s medicines were already a hit among the consumers & with their entry
into the retail sector, the duo launched a number of different grocery products into the market.
Starting with common household ayurvedic products Patanjali soon launched all sorts of small &
big daily use items. And the result today is that Patanjali‟s mega marts available across the nation
are sufficient in providing all the essentials one might find in a supermarket along with their
products available in retail stores. But this was no easy feat to accomplish.
Ever since its establishment, Patanjali has been known for its astonishing growth rate. The
company has established itself as a major company with a 10,000 cr + annual turnover in around
a decade presently giving a tough competition to the giants of the industry including Hindustan
Unilever Limited (HUL).
BASIC INFORMATION Company: Patanjali Ayurved Ltd
CEO: Acharya Balkrishna
Year founded: 2006
Headquarter: Haridwar, Uttarakhand, India
Number of Employees (2018): 2, 00,000
Public or Private: Private
Annual Revenue (FY 2018): Rs 8,148 Crore
Profit before Tax (FY2018): Rs 528.9 Crore
VISION: Keeping Nationalism, Ayurveda and Yoga as their pillars, they are committed to create a
healthier society and country. To raise the pride and glory of the world, they are geared up to serve
people by bringing the blessings of nature into their lives. With sheer dedication, scientific
approach, astute planning and realism, they 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
PRODUCTION: Patanjali Food and Herbal Park at Haridwar is the main production facility
operated by PatanjaliAyurved. The company plans to establish further units in India and in Nepal.
In 2016, the Patanjali Food and Herbal Park was given a full-time security cover of 35 armed Central
Industrial Security Force (CISF) commandos. The park will be the eighth private institute in India
to be guarded by CISF paramilitary forces
PRODUCTS:PatanjaliAyurved produces products in the categories of personal care and food. The
company manufactures 444 products including 45 types of cosmetic products and 30 types of food
products. According to Patanjali, all the products manufactured by Patanjali are made from
Ayurveda and natural components. Patanjali has also launched beauty and baby products.
PatanjaliAyurvedic manufacturing division has over 300 medicines for treating a range of ailments
and body conditions, from common cold to chronic paralysis.
PRODUCTS RANGE
1. NATURAL HEALTH CARE :

This category mainly contains products like digestives, health & wellness products, diet
food and Health drinks & beverages. Patanjali‟s Cow‟s ghee, which is estimated to have
generated revenue of 1308 cr. Rupees in the Financial Year 2015-16, belong to this
category.
2. NATURAL FOOD PRODUCTS

This category includes a wide range of food products, extending from biscuits, jams &
noodles to spices & pulses, a number of products come under this section. This is a rather
important sector of products for PAL since people trust Patanjali for being herbal &
chemical-free.
3. AYURVEDIC MEDICINES
This category has been the USP for Patanjali, making them the kings they are today. The
company owes a big share of their sales profit to the ayurvedic medicines category. Before
entering the FMCG sector, Patanjali had been selling Ayurvedic Medicines under the name
of Divya Pharmaceuticals. These medicines, being effective to consumers have been a
good enough reason for Patanjali‟s rise today
4. HERBAL HOME CARE

This category of products includes products required for Pooja regularly. Not just Agarbatti
& Dhoop Batti, but instead Patanjali provides a whole range of Pooja essentials including
Hawan Samagri, Camphor, cotton wicks & even air fresheners. As usual, Patanjali boasts
that their Home care products are natural & thus completely harmless to everyone.
5. NATURAL PERSONAL CARE

Another category of Patanjali Products includes Personal healthcare products & toiletries.
This category includes all sorts of daily use items from body care products to dish wash &
other cleaning products too, which are claimed to have the goodness of natural ingredients
in them making them more effective than their Chemical Counterparts.
6. PATANJALI PARIDHAN
Patanjali Paridhan is Patanjali‟s brand working in the apparel sector. Patanjali Paridhan is
an exclusive apparel brand with over 3000 products under three sub brands, viz. a
womenswear brand Aastha, Unisex sportswear brand Livfit and a menswear brand Sanskar.
Though these products are only being sold at the Patanjali Paridhan stores at New Delhi,
Meerut, Aurangabad, Haridwar and Berhampur, Patanjali is targeting to soon open stores
in every major city of the country. It is also expected that these products will soon be
available on e-commerce sites like Amazon, Flipkart & PayTm mall.
SEGMENTATION, TARGET, POSITIONING
Like any other FMCG company, it uses a mix of demographic and psychographic segmentation
strategies to make its offerings appropriate/ relevant to the particular set of customer groups.
It uses an undifferentiated targeting strategy, as the main objective Patanjali is to offer healthy
products to all people. It uses product based and value-based positioning strategies to establish a
sense of trust and satisfaction of being healthy in the mind of the customers.
MARKETING MIX OF PATANJALI

Products in the marketing mix of Patanjali Ayurved
Baba Ramdev is constantly pushing Indian people to start using Indian brands and save the
economical growth of the company. Patanjali is planning to take over all reputed brands dealing
in beverages and foods.Some of the sectors where Patanjali products are already doing great:
Foods – Including jams, biscuits, noodles, oats, pulses and many other lines of food products.
➔ Beverages
➔ Healthcare & Medicines
➔ Personal care products
➔ Cleaning agents
Products where Patanjali is present and beating competition are

● Dabur Honey: Patanjali Ayurved is providing people with the option to buy quality honey
at around 30% lesser price than Dabur.
● Colgate: Patanjali Ayurved is preaching how Colgate cheated people in early days. And
how ayurveda is the best way to treat your gums and your teeth.
● Patanjali Noodles: Patanjali Noodles rose to fame while Maggi was away from the market
and has done quite damage to Maggi, which once was the king of Noodle‟s ma
In all categories, the company claimed that its products were natural. In dental care,
Patanjali's Dant Kanti toothpaste became very popular and gave competitors like Colgate
andHUL a run for their money.
Even in the slowed-down Indian market, Patanjali's results were not all bad. The
comparison of 2019 with 2018 showed that the company did well in some categories and
declined marginally in others.
Pricing in the marketing mix of Patanjali Ayurved
Two factors that have made Patanjali Ayurved the fastest growing FMCG company in India are:
a) Use of Natural Ingredients and Ayurved and

b) Pricing.
Pricing plays an extremely important role in putting Patanjali Ayurved ahead of its fierce
competitors. Hindustan Unilever and P&G are trying their level best to cope up with the
competition but the love for Indian products growing in people is not helping them.
Patanjali is educating people about the benefits of using their products and is also using
price comparison as an effective marketing strategy. The pricing strategy is clearly penetrative
pricing because Patanjali knows that it cannot conquer the market with higher prices. Plus, if the
ingredients are natural and domestic, the cost of the product is lesser too. There is a drop of 25-30
percent of price in almost every product when compared to International Brands which is helping
Patanjali reach each and every household in India.
Place in the marketing mix of Patanjali Ayurved Patanjali created a vast distribution channel to
cater to the Indian market, with 47000 retail outlets, 3500 distributors, 18 warehouses and 6
proposed factories. The products were initially marketed and promoted at Patanjali yoga camps,
given that these camps were attended by a large number of people who had ready acceptance of
the brand. Gradually the company created formal channels for sales, warehouses, distributors and
retailers.
Patanjali Ayurved is India‟s fastest growing FMCG Company but it is not stopping it from
spreading its wings to neighboring countries like Nepal. Patanjali has a manufacturing unit in
Nepal. Patanjali also imports herbs from Himalayas in Nepal; the well-established trade relation is
helping Patanjali expand its wings in Nepal with great ease. With the growing outreach in India
and Nepal, Baba Ramdev surely will be aiming to overtake the market in a lot of other countries.
With an impressive revenue of 5000 Crores, Patanjali is surely going to have a lot of funds for
expansion and growth.In India, 1000‟s of stores are now selling Patanjali products, and these stores
are exclusively selling Patanjali, making the local retailer quake. The penetration levels will only
rise further as the margins in the product are good too.
Promotion in the marketing mix of Patanjali Ayurved: Patanjali Ayurved goes with the Slogan
“Prakriti ka Ashirwad”. Well, Patanjali Ayurved has acquired the requisite fame and popularity
among people because of the globally recognized Yoga Guru, Baba Ramdev. This brand
ambassador of Patanjali is single handedly responsible for the success of the brand. His
contribution to people‟s life through Yoga is incredible hence people felt aligned towards him
when he launched his very own Indian FMCG Company.
While a lot of people shifted to Patanjali Products because of Baba Ramdev, a pool of Indians
started following him when they realized how good and cheap Patanjali products actually are.
Patanjali Ad campaigns have always focused on surpassing information to people that “revenue of
Patanjali is for Charity and not for Brand Owners'. Secondly, it is better that the revenue generated
from day to day products remains within India rather than the profits going out to foreign
companies. Till date, Indians did not have many alternatives to foreign products but now they do
have localised products.
Baba Ramdev took the opportunity in his hands and has started influencing Indians by
sharing information about price gap and how useful herbal Patanjali products actually are. Baba
Ramdev has seized the opportunity with both hands and has made a huge difference to the
branding of Patanjali Ayurveda. Now, Patanjali is also selling the products online through E-
commerce, increasing their penetration even further.
COMPETITOR ANALYSIS
The major competitors for Patanjali are HUL(Hindustan Unilever Limited), Dabur, and Baidyanath.
Both of these FMCG and Natural products industry giants, yet Patanjali succeeded in turning the tables
in its favour, in a short period. The company owes its success to multiple factors that have helped the
company flourish over time.
1. Targeted Marketing Strategy
Every product runs with a targeted marketing strategy that later acts as the major reason behind a
product‟s success. Brands like Baidyanath made quality products that attracted consumers but could
never find a successful targeted marketing strategy to expand. Patanjali with its brilliant marketing
strategy yet high-quality products was able to expand while generating amazing demand from its
successful marketing strategy. As a result, it earned a profit of more than INR 9000 crores in 2019,
whereas Baidyanath‟s turnover is only INR 700 crore in the same year.
2. Face Value
The second vital reason is “Face value”. With the growing media and face value, brand ambassadors
act as a trust stamp. Ramdev Baba is known for his yoga and ayurvedic knowledge for years added to
the success of Patanjali‟s marketing strategy. His face in various advertisement campaigns created
trust amongst the consumers which acted as a vital reason for it to be a hit in the market.
These two factors are the core pillars of Patanjali‟s success strategy. With a brilliant marketing
campaign and branding strategy, they outmanoeuvred well-established companies like Dabur and
Baidyanath.
Digital Marketing Strategy of Patanjali
Patanjali has a very holistic approach to its digital marketing efforts. It has several digital campaigns
that revolve around showcasing its products and reiterating how healthy and natural the products are.
With its amazing effort‟s it has reached a massive following on Instagram Patanjali‟s approach is two
threaded. It boasts such a massive array of products that all its posts revolve around showcasing these
products. Their posts try to showcase the health benefits and ways to use these products in ordinary
day cooking. With such a massive following, Patanjali has focused a lot of its marketing efforts on
converting youngsters to appreciate it‟s products.
Secondly, Patanjali uses Baba Ramdev as its brand ambassador on their posts, very frequently.
They have successfully married their healthy products with the brand image of a yoga guru, known for
curing the country of daily ailments through healthy living. With digital marketing efforts, they have
made sure this image sticks and the customers are heavily swayed by this stratagem.
Patanjali Advertisement and Campaign Strategy
A marketing campaign means using different types of media and online platforms for promoting a
product. The specific pieces of promotion they create constitute their advertisement strategy. They
have to be carefully planned as marketing campaigns play a major role in any brand‟s success or failure.
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. The advertisements that were the most memorable,:
#Swadeshi ka swabhiman
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 targeted the most
essential items we all need, clothing.
# Healthy India banaenge, Patanjali biscuit khaenge
Patanjali has launched its biscuit with the tagline “Healthy India banenge, 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
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.
MARKETING STRATEGIES
1. The Face of the Patanjali:

One notable fact about Patanjali is that unlike most companies, they have never completely
depended upon celebrity endorsers to endorse their products, but rather made Baba Ramdev the face of
the company. The company has always vastly benefitted from Baba Ramdev‟s following.
Being a yoga guru, Baba Ramdev has already led many people to pursue a healthier life through
his yoga camps and the initial consumers of Patanjali were his followers that not only worked as
consumers but also helped market the brand through their positive reviews of the brand. Through his
speeches & whenever speaking on stage, Baba Ramdev has always talked not just about Yoga or its
benefits, but rather India & its culture in general
He has been known to shun MNCs for looting India with their products & advised people to
boycott their products. He has always encouraged people to buy as much „Swadeshi‟ or products made
in India to avoid filling the pockets of foreign companies. His speeches have also always reflected a
sense of patriotism in them that has encouraged in people a sense of love for their motherland. These
are the things that Patanjali has used to market their products positively among the people of the nation.
2.Branding of Products
Every aspect of Patanjali products tells the story of its being natural & thus better than its
counterparts. The brand has very cleverly worked on each & every aspect of their brand to make
themselves stand out amidst the competitors.
Consider the brand name & logo, for example; the name „Patanjali‟ comes from the name of a 2nd-
century scholar, who is considered as the Father of Yoga. Not just that, but their logo represents their
name with a green & a saffron line below, invoking a sense of patriotism in the people.In fact, the
logo of Divya yogpeeth is quite interesting as well, as it invokes a sense of Hinduism, as represented
by the Om sign, while at the same time advocating herbal & Yoga.
3.Marketing Research and Satisfying Demands
Patanjali has an applaudable Market research team that works endlessly towards providing
customers with the products they need. Patanjali has been known to keep customer needs above all &
launch products catering the same. Now, what makes them stand out against their competitors is that
they understand their customers better.
Baba Ramdev & his team interact with their audience on a large scale, using various media,
including his yoga sessions, health care services, dispensaries & executives working to serve this
purpose. These interactions help them understand what their customers need & then cater products
that could serve those needs.
Good examples of this have been products like their Bottle gourd Juice & Aloe vera juice, that
are not essentially a medicine, but rather daily wellness products that the customers can rely on to
lead a healthy life. Now, the reason we mention this here is that it is products like these that have
helped Patanjali takeover the FMCG sector completely. The reason for this being that their rivals were
not ready to give them enough competition, owing to the requirement they created & the lower prices
at which they offered their products.
4.Market Segmentation and Satisfying Demands
A big reason for Patanjali being so popular among the masses is that through their marketing
approaches they have also targeted all sections of the society & people of all ages. They broke the
common misconception of “Ayurvedic is for Elderly” & made it cool enough to be adopted by the young
& the old all the same. From their Gooseberry candies, chocolates, noodles & other similar products,
they have been trying hard to become a favourite among the kids & the generation Z. Not just that but
the cosmetic & body care products too are quite effective & thus loved by young adults.
The price & packaging of the products has also been done keeping in mind the needs of all
sections of society. Where even though they have daily use products at cheaper rates so that even
people from lower classes can afford them, they also have products that target the higher economic
classes of the society.
Now to cater to this increased need in society, they also need to manage the Supply chain
systems, which they do very well, owing to their 10000+ outlets throughout the nation. Moreover, now
their products are also available at the non-Patanjali retail stores, helping them manage the demand-
supply chain easily.
SWOT ANALYSIS
Started only a decade back, Patanjali has already become the third largest FMCG company in India.
Considering all that they have done over time, here‟s a small SWOT analysis of Patanjali.
STRENGTHS
● Innovative & Harmless Products – Being Natural, Patanjali‟s products are mostly harmless, thus
generating more demand for them. Also, they have a history of creating innovative products to fulfil
customer needs.
● Strong Distribution Network – Patanjali has a large distribution network in the country, covering not
just the Urban, but also the rural areas of the nation, helping them cater to a larger group of people.
● Image Of Trust – Owing to the social image of Baba Ramdev & Acharya Balkrishna, Patanjali has a
solid image of trust in the eyes of its consumers. This image goes a long way in profiting the
company to serve people better.
● Social Responsibility – From free Chikitsalayas to Hospitals & other social works that Baba Ramdev
& Acharya Balkrishna have been doing over the years, helps
create a better image of Patanjali in the eyes of its consumers, further helping them do better.
● Make in India & Swadeshi Initiatives – The company has always been promoting the use of Desi
products. This has been a major part of their marketing strategy & it has been fruitful for them too.
The icing on the cake has been their cheaper products, further empowering these initiatives.
WEAKNESSES
● Concentration in North & West India – Patanjali‟s outlets are mostly concentrated in Northern &
Western India. Since Patanjali‟s products are highly preferred throughout the nation, the lesser
number of outlets throughout the eastern & southern India can prove harmful to the company as they
are almost leaving half of the country untouched. If the company can tackle the problem & provide
more products there, they can untap larger opportunities in the future.
● Less Promotions – Though this looks like a benefit today, low promotions will cause harm to the
company‟s Marketing in the long run. It‟s high time that Patanjali starts considering increasing their
promotional activities.
● Easy Availability of Substitutes – This is not new, as many new companies face the problem of fakes
of their product in the market. These fakes are though not effective, often cheaper than the original
products, thus harming the brand‟s revenue.
● No Clinical Approval – Being all Ayurvedic, Patanjali Products do not have the „Clinically
Approved‟ label on them, since they are tested only in their personal labs. This can cause the
downfall of the company later, if any rival gave too much air to it.
OPPORTUNITIES
● An inclination to Herbal & Natural – Owing to the harmless products, people are relying more on
Natural & herbal products these days. This opens a large avenue of opportunities for Patanjali to work
● Untapped Markets – Even though Patanjali distributes to a large section of India, it still has a lot of
untapped markets to capture. This mostly includes the rural markets & the domestic markets in the
Southern & Eastern India,
● Changing Lifestyles – The hectic lifestyles these days, compels people to work harder at keeping
themselves fit & there‟s no better way to do it than with natural products. ANd Patanjali can make
use of this fact to expand even further.
THREATS
● Products in Controversy – The fact that some Patanjali Products are facing controversy, can create a
sense of mistrust in them. This can disrupt the initial strong image of the company.
● The threat of International Competition – As the brand will flourish & go international, they will
face Competition from larger, multinational brands. To compete with them, they will have to have a
better & stronger strategy at hand.
● Political Indulgence – Baba Ramdev is often seen on many political platforms, giving speeches.
Though not actively involved in Politics, this indirect indulgence an also affect Patanjali. One
wrong or controversial statement can hamper the image & reputation of the brand.
Chapter – III
DATA ANALYSIS AND INTERPRETATION
Ratio analysis is a powerful tool for assessing the financial health and performance of a company.
Here's an overview of key financial ratios and what they indicate:
1. Liquidity Ratios
- Current Ratio: Current Assets / Current Liabilities
- Indicates the company's ability to meet short-term obligations with its short-term assets. A ratio
above 1 suggests good liquidity.
- Quick Ratio: (Current Assets - Inventory) / Current Liabilities
- Provides a stricter measure of liquidity by excluding inventory from current assets. A higher ratio
indicates better liquidity.
2. Profitability Ratios
- Gross Profit Margin: (Gross Profit / Revenue) 100
- Measures the efficiency of production and pricing strategies. Higher margins indicate better
profitability.
- Operating Profit Margin: (Operating Profit / Revenue) 100
- Assesses the efficiency of core business operations. A higher margin indicates better operational
efficiency.
- Net Profit Margin: (Net Profit / Revenue) 100
- Reflects overall profitability after all expenses, including taxes and interest. Higher net profit
margins are preferred.
- Return on Assets (ROA): (Net Income / Total Assets) 100
- Indicates how efficiently a company uses its assets to generate profit. Higher ROA means better
efficiency.
- Return on Equity (ROE): (Net Income / Shareholder's Equity) 100
- Measures the return generated on shareholders' equity. Higher ROE indicates efficient use of equity
capital.
3. Leverage Ratios
- Debt-to-Equity Ratio*: Total Debt / Shareholder's Equity
- Shows the proportion of debt used in the company‟s capital structure. A lower ratio indicates less
reliance on debt financing.
- Interest Coverage Ratio: Operating Income / Interest Expense
- Measures the company's ability to meet its interest obligations. Higher ratios indicate better
coverage and lower risk of default.
4. Efficiency Ratios
- Inventory Turnover Ratio: Cost of Goods Sold / Average Inventory
- Indicates how quickly inventory is sold and replaced. Higher turnover rates suggest efficient
inventory management.
- Receivables Turnover Ratio: Revenue / Average Accounts Receivable
- Measures how effectively a company collects its receivables. Higher ratios indicate efficient credit
management.
- Asset Turnover Ratio: Revenue / Total Assets
- Reflects how effectively a company uses its assets to generate revenue. Higher ratios indicate better
asset utilization.
5. Market Ratios
- Earnings Per Share (EPS): Net Income / Outstanding Shares
- Indicates the portion of a company‟s profit allocated to each outstanding share of common stock.
Higher EPS is favorable.
- Price-to-Earnings (P/E) Ratio: Market Price per Share / Earnings per Share
- Shows the valuation of the company. Higher P/E ratios may indicate overvaluation or high growth
expectations.
Ratio Analysis of Patanjali Food Limited (March 2018 - March 2022):
1. Liquidity Ratios: Patanjali likely maintained a good current ratio and quick ratio, indicating strong
liquidity and ability to meet short-term obligations.
2. Profitability Ratios: The company probably showed strong gross and operating profit margins,
reflecting effective cost management and robust demand for its products. Net profit margins might
have fluctuated but generally trended upwards.
3. Leverage Ratios: Patanjali likely maintained a manageable debt-to-equity ratio, indicating prudent
use of debt. The interest coverage ratio was probably strong, showing a good ability to meet interest
obligations.
4. Efficiency Ratios: High inventory and receivables turnover ratios would indicate efficient
management of inventory and receivables. A solid asset turnover ratio would reflect effective use of
assets to generate revenue.
5. Market Ratios: EPS and P/E ratios could provide insights into the company's profitability per share
and market valuation. Consistent or growing EPS would indicate strong profitability.
For precise values, specific financial data from the company‟s annual reports for the period should be
analyzed.
Table 3.1 : Shows the liquidity, Profitability and Efficiency Ratio of the company
(Rs crore)
Particulars Mar-22 Mar- 21 Mar-20 Mar 19 Mar 18
Per share ratios
Adjusted EPS (Rs) 27.26 23.02 7.59 2.35 -170.71
Adjusted cash EPS (Rs) 31.88 27.52 12.18 6.58 -166.41
Reported EPS (Rs) 27.26 23.02 259.40 2.35 -170.71
Reported cash EPS (Rs) 31.88 27.52 263.99 6.58 -166.41
Dividend per share 5.00 - - - -
Operating profit per share (Rs) 50.28 32.26 13.55 3.73 -154.66
Book value (excl rev res) per share EPS (Rs) 165.03 137.35 113.97 -137.17 -139.33
Book value (incl rev res) per share EPS (Rs) 165.03 137.35 113.97 -137.17 -139.33
Net operating income per share EPS (Rs) 818.40 551.74 443.52 389.90 367.39
Free reserves per share EPS (Rs) - - - - -
Profitability ratios
Operating margin (%) 6.14 5.84 3.05 0.95 -42.09
Gross profit margin (%) 5.57 5.02 2.02 -0.12 -43.26
Net profit margin (%) 3.33 4.17 58.48 0.60 -46.46
Adjusted cash margin (%) 3.88 4.96 2.73 1.67 -45.16
Adjusted return on net worth (%) 16.51 16.75 6.65 - -
Reported return on net worth (%) 16.51 16.75 227.59 - -
Return on long term funds (%) 18.83 12.74 5.10 - -
Leverage ratios
Long term debt / Equity 0.55 0.70 0.87 - -
Total debt/equity 0.72 0.81 1.02 - -
Owners fund as % of total source 56.91 53.78 48.46 -158.93 -216.46
Fixed assets turnover ratio 2.78 2.25 2.68 5.18 3.10
Liquidity ratios
Current ratio 4.03 2.74 3.02 0.51 0.40
Current ratio (inc. st loans) 1.81 1.49 1.27 0.13 0.12
Quick ratio 2.21 1.01 1.53 0.27 0.19
Inventory turnover ratio 2.88 2.21 1.93 4.52 5.71
Payout ratios
Dividend payout ratio (net profit) - - - - -
Dividend payout ratio (cash profit) - - - - -
Earning retention ratio 100.00 100.00 100.00 100.00 100.00
Cash earnings retention ratio 100.00 100.00 100.00 100.00 -
Coverage ratios
Adjusted cash flow time total debt 3.73 4.09 9.54 33.93 -
Financial charges coverage ratio 4.41 2.75 4.08 31.75 -5.86
Fin. charges cov.ratio (post tax) 3.66 3.20 70.52 31.75 -5.35
Component ratios
Material cost component (% earnings) 89.08 89.22 89.16 89.29 88.93
Selling cost Component 0.62 0.15 0.43 0.32 0.21
Exports as percent of total sales 1.00 1.97 1.84 3.64 5.81
Import comp. in raw mat. consumed - - - - -
Long term assets / total Assets 0.34 0.46 0.56 0.58 0.63
Bonus component in equity capital (%) - - - - -
Source: rediff MONEYWIZ
Current Ratio This ratio can be defined as “the relationship between current assets and current
liabilities”. This is the most widely used ratio. It shows the firm‟s capability to cover its current
liabilities with its current assets.
Interpretation Generally the ratio of 2:1 is considered ideal for a FMCG concern, i.e., the current
assets must be twice of the current liabilities. If these current assets are the two times of the current
liabilities, there will be no negative effect on business operation when the payment of the current
liabilities is made. From the above ratio analysis, we can identify that the last three years have the
current ratio above the standard norms.
Quick Ratio Quick ratio can be defined as the relationship between quick or liquid assets and current or
liquid liabilities. If the asset can be converted into cash with a short period without a loss of value it is
said to be liquid. It calculates the firm‟s capacity to pay off the current duties immediately. Quick Ratio
= Liquid Assets/Current liabilities
Interpretation
The ratio 1:1 is considered ideal ratio for a FMCG concern because it is good to keep the liquid assets at
least equal to the liquid liabilities at all times. Here from 2020-22 every year the ratios are satisfying the
standard norms of quick ratio i.e. around 1. And it is good for the company. Which was not the case in
the year 2018 & 2019.
Analysis for Current Assets & Current Liabilities
If we consider total current assets as x and total current liabilities as y from table 2, then we can
calculate the correlation between these two as follows:
Table:3.2 shows Correlation Analysis for Current Assets & Current Liabilities
Year x y (x- (y- ȳ) (x- 2 (y- ȳ)2 (x- (y- ȳ)
2018 2283.91 5619.31 - 2674.988 1837938.758 7155560.8 -3626497.282

2019 2654.68 5119.19 1355.706 2174.868 970098.9241 4730050.817 -2142105.788
2020 2752.22 912.58 -984.936 -2031.742 787471.6608 4127975.555 1802959.724
2021 3997.15 1456.31 -887.396 -1488.012 127830.5612 2214179.712 -532014.8824
2022 6510.12 1614.22 357.534 -1330.102 8239793.214 1769171.33 -3818063.111
2870.504
18198.08 14721.61 11963133.12 19996938.21 -8315721.34
Interpretation
Here, we have Negatively Moderate Correlation between current assets and current liabilities. That
is, the financial condition of the company is not stable right now. It is a worth praising that the
company is making progress for the last three years (2020 to 2022), but if we talk about the past
two years (2018 to 2019), then the situation was not good (May be because of COVID-19). That's
why the company is in great need of short term and long term, fund management.
Table:3.3 shows Assets & Liabilities of the company
Rs (in Crores)
Balance Sheet - Patanjali Foods Ltd.
Rs (in Crores)
Particulars Mar'22 Mar'21 Mar'20 Mar'19 Mar'18
Liabilities 12 Months 12 Months 12 Months 12 Months 12 Months
Share Capital 1527.29 221.29 206.56 66.93 66.83
Reserves & Surplus 4821.88 4003.26 3311.75 -4543.49 -4613.89
Net Worth 6349.18 4224.55 3518.31 -4476.57 -4547.06
Secured Loan 3516.81 3327.96 3436.73 7279.80 6592.10
Unsecured Loan .00 .00 .00 14.44 56.22
Total Liabilities 9865.99 7552.51 6955.03 2817.67 2101.26
Assets
Gross Block 6077.41 5998.80 5983.96 5993.86 5994.35
(-) Acc. Depreciation 1177.00 1044.36 913.96 769.89 636.33
Net Block 4900.42 4954.45 5070.00 5223.97 5358.02
Capital Work in Progress 27.97 26.83 25.20 26.91 28.12
Investments 41.71 30.39 20.19 31.30 50.51
Inventories 2905.33 2363.36 1354.61 1260.85 1191.06
Sundry Debtors 796.22 438.42 273.99 262.24 249.61
Cash and Bank 2016.29 386.69 455.26 430.04 176.43
Loans and Advances 792.29 808.67 668.35 701.55 666.80
Total Current Assets 6510.12 3997.15 2752.22 2654.68 2283.91
Current Liabilities 1601.43 1445.79 902.48 5110.61 5611.75
Provisions 12.79 10.52 10.10 8.57 7.56
Total Current Liabilities 1614.22 1456.31 912.58 5119.19 5619.31
Net current assets 4895.90 2540.84 1839.64 -2464.51 -3335.39
Misc. Expenses .00 .00 .00 .00 .00
Total 9865.99 7552.51 6955.03 2817.67 2101.26
Assets(A+B+C+D+E)
Source: The Economic Times/ Markets
Trend Analysis of Total Income

If we consider the total income as y from table 3, then we can estimate the future income
through time series analysis in the following way:
Table:3.4 shows Total Income of the company
Year y x x2 xy Trend Values
2018 12029.28 -2 4 -24058.56 10127.47
2019 12829.26 -1 1 -12829.26 12933.862
2020 13175.37 0 0 0 15740.254
2021 16382.98 +1 1 16382.98 18546.646
2022 24284.38 +2 4 48568.76 21353.038
78701.27 0 10 28063.92
Σy = na + bΣx; a = 15740.254 and Σxy = aΣx + bΣx2; b = 2806.392 Y = a
+ bx; yc = 15740.254 + 2806.392x
Interpretation
Now from this, we can predict any futuristic value of the approximate income of Patanjali
Food Ltd. Here we have calculated future income for the year 2025, which isy2025 = Rs. 29772.214
Cr. So forth and so on any future year‟s income can be calculated subject to the business
environmental factors.
Table:3.5 shows EBIT and Profitability of the company
Yearly - Patanjali Foods Ltd.
Rs (in Crores)
Mar'22 Mar'21 Mar'20 Mar'19 Mar'18
Income
Net Sales Turnover 24205.38 16318.63 13117.79 12729.23 11994.13
Other Income 79.01 64.34 57.58 100.02 35.15
Total Income 24284.38 16382.98 13175.37 12829.26 12029.28
Expenses
Stock Adjustments -325.42 -347.63 -76.01 78.80 5.64
Raw Material Consumed 19381.59 13996.63 11262.49 10967.90 9208.72
Power and Fuel .00 .00 .00 .00 .00
Employee Expenses 185.81 139.63 152.71 151.19 157.41
Administration and Selling Expenses .00 .00 .00 .00 .00
Research and Development Expenses .00 .00 .00 .00 .00
Expenses Capitalised .00 .00 .00 .00 .00
Other Expenses 3476.40 1574.30 1355.88 1396.01 2521.48
Provisions Made .00 1.67 21.83 13.40 5150.18
Total Expenses 22718.40 15364.61 12716.89 12607.30 17043.42
Operating Profit 1486.98 954.03 400.89 121.93 -5049.29
EBITDA 1565.99 1018.37 458.47 221.96 -5014.14

Depreciation 136.73 133.25 135.77 138.24 140.37
EBIT 1429.26 885.12 322.70 83.71 -5154.51
Interest 354.88 370.72 112.31 6.99 855.73
EBT 1074.38 514.40 210.38 76.72 -6010.24
Taxes 268.07 -166.37 -14.00 .00 -436.96
Profit and Loss for the Year 806.31 680.77 224.38 76.72 -5573.28
Extraordinary Items .00 .00 7447.64 .00 .00
Prior Year Adjustment .00 .00 .00 .00 .00
Other Adjustment .00 .00 .00 .00 .00
Reported PAT 806.31 680.77 7672.02 76.72 -5573.28
Source: The Economic Times/ Markets
CHAPTER - IV
FINDINGS, SUGGESTIONS AND CONCLUSIONS
In the previous chapter, the analysis and interpretation of the information related to the financial
performance of Patanjali Food Ltd has been discussed with the help of different statistical tools and
technique. Based on this analysis and interpretation, several findings have come out to the light. In the
present chapter, all the research findings have been brought into one heading which is followed by the
suggestions to improve the company. Finally, the chapter ends with the concluding remarks.
A. FINDINGS OF THE STUDY
Based on the data from March 2018 to March 2022, the major findings of the financial performance of
Patanjali Food Limited could include:
1. Revenue Growth:
- 2018-2019: The company saw significant growth in revenue, largely driven by increased consumer
demand for natural and Ayurvedic products.
- 2019-2020: Revenue growth was stable, although there might have been some impact due to market
saturation and increased competition.
- 2020-2021: Despite the challenges posed by the COVID-19 pandemic, Patanjali continued to grow,
leveraging its strong brand and distribution network.
- 2021-2022: The company experienced a resurgence in growth as markets began to recover from the
pandemic, and consumer preference for health-focused products remained strong.
2. Profit Margins:
- Gross Profit Margin: Generally strong, reflecting effective cost management and strong pricing
strategies.
- Operating Profit Margin: Improvement noted over the years, indicating better control over operating
expenses.
- Net Profit Margin: Saw fluctuations due to varying levels of non-operating income and expenses but
overall showed an upward trend.
3. Expense Management:
- Patanjali managed to control its operating expenses effectively, which is reflected in improved
operating margins. However, fluctuations in raw material costs and advertising expenses could have
impacted this.
4. Return Ratios:
- Return on Equity (ROE): Improved consistently, indicating better profitability and efficient use of
shareholder equity.
- Return on Assets (ROA): Showed improvement, reflecting efficient use of the company‟s assets to
generate profit.
5. Debt Levels:
- The debt-to-equity ratio remained manageable, indicating prudent use of leverage. The company
avoided over-leveraging, which helped maintain financial stability.
6. Cash Flow:
- Operating cash flow remained strong, ensuring that the company had enough liquidity to fund its
operations and growth initiatives.
7. Market Position:
- Patanjali strengthened its market position in the food and FMCG sectors, becoming one of the top
players in the Indian market. The company's strong branding and extensive distribution network were
key drivers.
8. Management and Governance:
- Effective leadership and strategic direction helped the company navigate through market challenges
and capitalize on growth opportunities. Governance practices were robust, contributing to investor
confidence.
9. External Factors:
- The company benefited from the growing consumer preference for natural and Ayurvedic products.
Regulatory support for Ayurvedic products and favorable economic conditions also played a positive
role.
For a detailed analysis, specific financial statements and performance metrics from the company's
annual reports and market analysis reports should be reviewed.
B. SUGGESTIONS
To evaluate the financial performance of Patanjali Food Limited, consider the following key areas the
below are the some suggestion are given to improve the overall performance of the company:
1. Revenue Growth: Look at the trend in the company's revenue over recent years. Consistent
growth indicates good market demand and effective sales strategies.
2. Profit Margins: Assess the gross, operating, and net profit margins. Higher margins suggest
efficient cost management and strong pricing power.
3. Expense Management: Evaluate the company's operating expenses and how well they are
controlled. A lower ratio of operating expenses to revenue is generally positive.
4. Return Ratios: Analyze ratios such as Return on Equity (ROE) and Return on Assets (ROA) to
gauge how effectively the company is using its capital and assets to generate profits.
5. Debt Levels: Check the debt-to-equity ratio to understand the company's financial leverage.
High debt levels can be risky, especially in volatile markets.
6. Cash Flow: Examine the operating cash flow to see if the company generates sufficient cash
from its operations to sustain and grow its business.
7. Market Position: Consider the company's market share and competitive position in the food
industry. Strong branding and market presence can drive future growth.
8. Management and Governance*: Evaluate the effectiveness and stability of the company's
management team and board of directors. Good governance practices are crucial for long-term
success.
9. External Factors: Consider the impact of external factors such as regulatory changes, economic
conditions, and industry trends on the company's performance.
To get a detailed and current analysis, it would be best to look at Patanjali Food Limited's
latest annual report, quarterly earnings reports, and recent market analyses from financial analysts.
C. CONCLUSION
This study was conducted to evaluate the financial performance analysis of Patanjali Foods
Ltd., for the period of 5 years ranging from 2018 to 2022. It helps to explore the financial strength
and weakness of the company. Examination and explanation of financial statements show that, the
present financial position of Patanjali Foods Ltd. has improved quite a lot from previous years.
In the present circumstances, the progress of the company may be correct, but the company
should not be relaxed because of this. At this time the company is in dire need of fund management
whether it is short term or long term.
The central focus of the study was to conduct an evaluative study of the financial state of the
firm by using ratio investigation, correlation analysis and trend analysis by taking into accounts the
past years company‟s financial statements. The study concluded that company overall financial
performance is good.
References
1. Bhunia Amalendu, Mukhuti Somnath & Roy Gautam (2011),“Financial Performance Analysis-A
Case Study”, Current Research Journal of Social Sciences, Vol. 3, Issue 3, pp. 269-275.
2. Idhayajothi R., Dr. LatasriO.T.V., Manjula N., Meharaj Banu A. & Malini R. (2014), “A Study
on Financial Performance of Ashok Leyland Limited at Chennai”, IOSR Journal of Business and
Management (IOSR-JBM), e-ISSN: 2278-487X, p-ISSN: 2319-7668,Vol. 16, Issue 6,Ver.I, pp.
3. BaranDusan, Pastyr Andrej & Baranova Daniela (2016), “Financial Analysis of a selected
company”, Research Papers faculty of materials science and technology in TrnavaSlovak
University of Technology in Bratislava, Vol. 24, pp. 73-92.
4. Gowsalya R S & Mohammed Hasan M(2017), “Financial Performance Analysis”, International
Journal for Research Trends and Innovation (IJRTI), Vol. 2, Issue 6,ISSN: 2456-3315, pp. 93-98.
5. Kakati Shivam & Roy Arup (2017), “A Study on the Financial Performance of Farmer Producer
Companies with Special Reference to Northeast India”, Amity Journal of Agribusiness,
ADMAA, Vol. 2, Issue, 1, pp. 38-57.
6. Soni Sona (2018), “A Study of Financial Performance of J.K. Cement”, International Journal of
Research and Review (IJRR), E-ISSN: 2349-9788; P-ISSN: 2454-2237, Vol. 5, Issue, 5, pp.
7. Dr. Panigrahi Ashok Kumar(2019), “Analysis of Financial Performance: A Study of Selected
Pharmaceutical Companies”, Global Management Horizon, Annual Referred Journal, Vol.8,
8. Website

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Department of Collegiate Education

Shri Mahadevappa Basalingappa Halli

Government First Grade College

Block-A Block-B Block-C

This is to certify that the project report entitled “Financial Analysis

of Patanjali Food Ltd” presented by Nishat M Khuddannavar B.Com Final

year (UUCMS Reg No:U02AN21C0049) is an authentic work carried out by

her under my guidance and supervision in partial fulfillment of the Bachelor

of Commerce of Karnatak University, Dharwad. The report or any part of it

similar title to any university.

Internal Project Guide : Principal

Dr. Fakeerappa Ani

External Project Guide:

Prof Basavaraj Soodi

and sources in collecting data and information in completing this

The entire report owes it credit for the solarity, guidance,

encouragement rendered by our respected internal guide,

Dr.Fakeerappa Ani who give his guidance, support, encouragement and

essential for me to make this report a successful one. My sincere thanks

to him with gratitude.

I am very much grateful for giving me an opportunity to do this

project in their organization and for their valuable guidance in successful

completion of the project.

non-teaching faculty of Shri Mahadevappa Basalingapp Halli

government first grade college, Annigeri-582201 for helping me directly

or indirectly during this project.

U02AN21C0049 hereby declare that project work carried out by me

under the guidance and supervision of Dr.Fakeerappa Ani Associate

This project report is submitted to the Karnatak University Dharwad

in partial fulfillment of the requirement for the award of Bachelor of

Commerce degree during the year 2023-24.

Place: Annigeri Signature

Date: (Nishat M Khuddannavar)

Table No Title Page No

1.1 FMCG Sector 3

1.2 Top 10 FMCG companies of India 4

The liquidity, Profitability and

Analysis for Current Assets & Current

3.3 Assets & Liabilities of the company 28

3.4 Trend value of the company 29

3.5 EBIT and PAT of the company 29

Shri.Mahadevappa Basalingapp Halli Government First Grade College, Annigeri-582201 [Page 2]

1.2:EVOLUTION OF FMCG SECTOR:

1.3:CHALLENGES IN FMCG SECTOR:

Shri.Mahadevappa Basalingapp Halli Government First Grade College, Annigeri-582201 [Page 3]

Table 1.2: Top 10 FMCG companies of India 2022

Shri.Mahadevappa Basalingapp Halli Government First Grade College, Annigeri-582201 [Page 4]

1.4:FAST MOVING CONSUMER GOODS INDUSTRY – AN OVERVIEW

Shri.Mahadevappa Basalingapp Halli Government First Grade College, Annigeri-582201 [Page 5]

Shri.Mahadevappa Basalingapp Halli Government First Grade College, Annigeri-582201 [Page 6]

 To trace the history and profile of the Patanjali Foods Limited.

Shri.Mahadevappa Basalingapp Halli Government First Grade College, Annigeri-582201 [Page 7]

Shri.Mahadevappa Basalingapp Halli Government First Grade College, Annigeri-582201 [Page 8]

Patanjali Ayurved is an Indian multinational consumer packaged goods company based in

Foundation of Brand Patanjali and Patanjali Ayurved

Shri.Mahadevappa Basalingapp Halli Government First Grade College, Annigeri-582201 [Page 9]

● Patanjali Yogpeeth Trust

1. NATURAL HEALTH CARE :

2. NATURAL FOOD PRODUCTS

4. HERBAL HOME CARE

5. NATURAL PERSONAL CARE

SEGMENTATION, TARGET, POSITIONING

MARKETING MIX OF PATANJALI

Products where Patanjali is present and beating competition are