Emerging Global Business Trends

Presented By-

Zeta Group 12
 Ayushi Sharma
 Somasri Chatterjee
 Vishwa Shri Gyanendra
 Savi Singh
 Ojaswit Dwivedi
 Introduction

 Patanjali Ayurved Limited is an Indian consumer goods company.

 Manufacturing units and headquarters are located in the industrial area of Haridwar.
 The registered office is located at New Delhi.
 Incorporation date:-13 January 2006 by Baba Ramdev and Acharya Balkrishna
 According to CLSA and HSBC, Patanjali is the fastest growing FMCG company in India.
 Revenue of Rs 8135 Cr. in 2018
 It is valued at ₹30 billion (US$430 million).
 Patanjali Vis-a-Vis Competitors

Patanjali is leading over its competitors due to following reasons

 Innovation – Patanjali being a major competitor, FMCG companies are expected to
introduce innovative Herbal and Ayurvedic products over the forecast period
 Pricing – Patanjali sells its product at a lower price to meet consumer demands. Patanjali is
able to sell its best quality product at a price which is 10% to 30% less than its competitors who
spend 12% to 18% on advertising and promotion
 Brand Marketing – Patanjali has given a tough competition to some of the FMCG majors in
the area of hair care, oral care and OTC products across its brand portfolio through
impressive brand marketing by Baba Ramdev.
 Revenue Market Share – According to IIFL, Patanjali could attain a net turnover of Rs 20,000
crore by FY20.
 The Top 6 Patanjali Competitors are: Dabur India, Procter & Gambler, Marico, Nestle Ltd,
HUL(Hindustan Uniliver Ltd), Himalaya Herbal Healthcare
Patanjali & Indian FMCG Dynamics
Patanjali was formed in 1997 as a small pharmacy called
‘Divya Pharmacy’ in Haridwar , India, by Ramdev and his
collaborator, ayurveda expert Balkrishna, to manufacture
ayurvedic medicines. Balkrishna was involved in making
the ayurvedic medicines whereas Ramdev focused on
yoga. For about three years, the duo made the medicines
and distributed them free of cost to patients.
Patanjali’s reasons for success and key takeaways
 Low pricing and cost dynamics
 Focus on product quality
 Extensive sales and distribution network
 Hiring the right talent
 Baba as brand ambassador
 Product experimentation and innovation
 Cultural appeal
 Patanajali Vs Competitors
Patanjali
 Patanjali has carved a fresh market
for Ayurvedic products
 Patanjali, doubled its revenue from
Rs 5,000 crore in FY16 to Rs 10,561
crore in FY17, 9.83% rise in revenue
to Rs 11,600 crore in FY18.
 leading over its competitors due to
innovation, pricing, brand
marketing
Hindustan Uniliver Limited
 HUL’s revenue stood at Rs 35,218 crore
in FY18
 HUL share fell 80bps to 16.4% in oral
category
 HUL has carved out 15 teams for each
category with separate targets in
sales and innovations
 To counter Patanjali’s ascendancy,
relaunch of the Ayush master brand in
the mass segment across categories
like toothpaste, face wash,
antidandruff neem shampoo
Patanjali
 Patanjali Dant Kanti toothpaste,
grew share by 150 bps to 8.6%
Colgate Palmolive
 Colgate’s overall share fell 210 basis
points to 49.4%.
 Colgate launched the Cibaca
Vedshakti in 2016 & Colgate Neem
Active Salt
 Reason For Their FAILURE

10% fall in its revenues at ₹8,135 crore for the period ended March 2018
Reasons:
 Ignoring Competition
 Lack of Innovation
 Poor Management
 Lack of Advertising
 Patanjali products fail quality test
 25 Out Of 33 Patanjali Ads Were False & Misleading: ASCI fined 11lakh
 Learnings from Patanjali Success

 Huge Advertisement nothing else

 Swadeshi Factor
 Health Conscious, Organic Products attracted huge consumer base
 Product Quality (Ayurvedic Factor)
 Being in Media
 Powerful Distribution Network (1000 Exclusive Stores, Chikitsalay, Arogya Kendra)
 Word of Mouth promotion in Yoga Shivir
 Ramdev Factor (7.9 M Followers on Facebook, 6.66 Lacs on Twitter)
 Failure in 2019

 Lack of Advertising : The effectiveness of a marketing campaign determines the sales of a

product. The growth slowdown in Patanjali is a direct result of poor management of trade
channels and lack of a coherent advertising strategy.
 Poor Management: After garnering huge popularity among consumers, Patanjali ventured
into many other sectors besides FMCG. With such aggressive expansion, it became difficult to
manage all the business verticals and ensure quality
 Lack of Innovation: Businesses refusing to change with time will face inevitable failure. In
today’s competitive market, renovation is the key to maintain your brand position and drive
sales.
 Ignoring Competition: After witnessing Patanjali’s success and the potential of organic
product industry, the rival companies mostly multinationals started rolling out their own variant
of the natural and herbal product.
 Patanjali bid for Ruchi Soya

 Packaged foods maker Ruchi Soya, saddled with an overall debt of close to Rs 12,000 crore
 At the end of 2017, the debt-laden company was referred to the National Company Law
Tribunal (NCLT) following petitions from creditors Standard Chartered Bank and DBS Bank.
 In Aug- Sept’18 Adani Group submitted Lenders Approve Plan
 Patanjali moved NCLT against Adani Wilmar’s 6,000 CR takeover.
 In Jan 2019 Adani Wilmar Withdraws
 In March 2019 Patanjali makes revised bid of 4,350 CR
 Patanjali will become 2nd biggest edible oil company with 14% share
 Patanjali V/S Dabur India

 Patanjali's first phase of growth was at the expense of the 'foreigners'—MNCs like HUL,
Colgate and Nestlé.
 Patanjali's Dant Kanti took on Colgate and HUL's Pepsodent Except honey, and that too for a
short duration
 Patanjali was not able to make a dent in the market share of Dabur. Patanjali's focus on
MNCs came as a blessing in disguise for Dabur
 ...BUT IT MAY HAVE HIT A SPEEDBREAKER Patanjali's attempt to enter into multiple categories
such as Dairy, Agri and Apparel have spread it too thin
 Swift counter-attacks of MNCs with a herbal/natural positioning have blunted Patanjali's
edge. The ayurvedic upstart has struggled with quality perception and lack of innovations
 Dabur Response

 NEW PRODUCTS LAUNCHED DURING 2017-18 GET AN AYURVEDIC COATING...

 Dabur Honitus Hot Sip, a ready-to-use ayurvedic remedy for relief from cough and cold
 Agnisandeepam Churna, an ayurvedic medicine for improving digestion Dadimavaleha, a
digestive tonic with anar juice as the main ingredient
 Vasant Meha Ras, an ayurvedic medicine for managing diabetes and its complications
 Vatika Shampoo range with Satt Poshan (power of seven natural ingredients) Vatika Enriched
Coconut Hair Oil with seven ayurvedic herbs.
 Patanjali Jeans to be rolled out in 2019

 Patanjali Paridhan is the latest addition to the long line of products, launched by the
company that focuses on Swadeshi and all natural items
 Paridhan is planning to open around 100 stores across metros, on e-commerce and as well as
in smaller cities
 Patanjali Paridhan has three Brands 1) Live Fit 2) Sanskar 3) Aastha. All Garments and
accessories come under three brands
 Patanjali to Manufacture Solar Energy
Equipment's
 Patanjali is one of the largest and most trusted, privately owned renewable energy service
providers in India.
 Patanjali harness the sun’s energy to provide affordable, clean and green renewable energy
sources. By integrating environmentally-friendly business practices
 Initially, the company would source the components from other domestic producers but later
would manufacturer itself. It is installing required machineries from Germany and China.
 Patanjali’s Noida Food Park

 The cost of Noida Project is Rs 6,000 crore which makes it the biggest ever food park. It will be
constructed in 455 acres.
 Baba Ramdev’s Patanjali announced it would shift its food park out of Uttar Pradesh, blaming
the State Government for not giving necessary approval but now it has been resolved
 The Noida Food Park will help Patanjali ramp up production, create new packaged food
verticals and scale up the business in categories such as atta, biscuits, edible oils, rice, ghee,
pulses, spices and juices
 Conclusion

Since people have high expectations from them now. If their goal is very high then they Should
focus on Quality of products. Baba Ramdev promised that they maintain the utmost level of
quality in their manufacturing plants. So, in order to succeed, Patanjali should ensure to maintain
(if not improve) the same level of quality in future as well. If they will fail then this whole empire
will prove to be a water bubble, with this being a temporary phase for Patanjali and strong
players eventually coming up with strategies to recapture the lost market share. Patanjali should
invest in research and innovation to delight their customer base with unique choices. They
should also ensure that their product will available everywhere without any hassle.