Baba Ramdev is a business magnet who changed the game with vedic flavour!
Why Patanjali may be 'injurious' to health of listed FMCG rivals!
Palash Biswas
Baba Ramdev in Yoga mode activated apps religious to strengthen the FMCG business branded as Patanjali which the multinational companies might not ever do despite business friendly FDI governance.Rather we may chose to welcome the Desi Enterprise full of devotion as well as nationalism which makes the brand way ahead of other rivals and it is Hindutva all the way.
No one may dare to challenge the quality of the product nor any product so sacred be it be Aata or Ghee or any consumer commodity,no one dare to raise a voice as CPIM leader Brinda Karat failed to support the workers of the religious corporate company and faced the anger of the millions of devptee.
Devotion has become the greatest shield for business interest so no question to have any investigation if there is some complaint rather the complainer should face the consequence!
We have got the international Yoga divas thanks to Baba Ramdeva.He is also a very very successful King Maker better than our comrades or Lalu Prasad yadav.
Baba united religion, business, jati,media and corporate to get Dr.Manmohan Singh reelected.Since he gave up the God of reforms he had to eat the dust as Baba joined the RSS bandwagon.
Baba is not answaerabl to tax agencies as his rivals are.
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Thus I share this story to understand better Baba Bibhuti!
Why Patanjali may be 'injurious' to health of listed FMCG rivals
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"What makes Patanjali a credible threat is that it does not try to beat other FMCG companies at their game; it changes the game for them," says the report, titled Patanjali: Injurious to Listed FMCG Health authored by IIFL's Percy Panthaki.
The company, it says, enjoys several advantages over peers. It is associated with a personality followed by millions: Baba Ramdev. The combined with other factors such as price discounts, the appeal of the ayurvedic/herbal/natural platform and a desire to consume Indian brands makes for a winning formula.
The IIFL report says that the company may gain double-digit market share in 10 of 25 categories it analysed, including Ayurvedic medicine, honey, ghee and chyawanprash.
The companies that are expected to be impacted the most from Patanjali's are Colgate, whose revenues could be hit by 7.8 percent. "Patanjali has already garnered more than 5 percent market share and we believe that as general/modern trade distribution ramps up, market share would further increase to 13 percent by FY20," says the brokerage.
Dabur could be next, given Patanjali's overlap with Dabur products, such as Ayurvedic medicines, chyawanprash, honey, hair and skin care.
"In some of the categories such as honey and Chyawanprash Patanjali has a high right to win as it resonates with Patanjali's core brand values of health and wellness," according to the report.
Other FMCG players such as ITC and United Spirits may escape the Patanjali onslaught, considering that they dominate product lines (cigarettes and liquor, respectively) that the latter considers unhealthy and against its philosophy. Market leader HUL can take a moderate hit, the analyst reckons.
However, the company's sterling growth has prompted rivals into action. HUL, for instance, has already revamped its Ayurveda brand 'Lever Ayush' to re-position itself in the naturals space. Dabur has decided to ramp up its line-up of Ayurvedic products significantly.
In a recent interview with CNBC-TV18, Dabur CEO Sunil Duggal said it was too soon to evaluate Patanjali's impact on its business, and expressed belief the company would hold up to competition.
But as the brokerage report says, the battle lines are clearly drawn.
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Patanjali Ayurved
 We are bringing the largest number of natural products on the planet. | |
| Private limited | |
| Industry | FMCG, health care |
| Founded | 2006 |
| Founder | Swami Ramdev |
| Headquarters | Patanjali Food & Herbal Park, Haridwar Laksar road,Haridwar - 249404 (UTTARAKHAND), India |
Area served | Worldwide |
Key people | Acharya Balkrishna MD Swami Ramdev Brand Ambassador Swami Muktananda Director |
| Products | Patanjali Desi ghee, PatanjaliChyawanprash, Kesh Kanti, Patanjali aloevera juice, Dantkanti, Patanjali Kesar, and other herbal cosmetic products |
| Revenue |  ₹2500 crore(US$370 million) (2014–15) |
Number of employees | 2,00,000 (2011–12)[1] |
| Website | patanjaliayurved.net |
Patanjali Ayurved Limited, located in the industrial area of Haridwar, is anIndian industrial company. This unit was established for manufacturing pure quality and scientifically developed mineral and herbal products.[2]
A report by investment banking company CLSA, Wish you were listed: Patanjali Ayurved, shows that Patanjali is bigger than Emami and Jyothy Labs, is perhaps the fastest growing fast-moving consumer company in India, and had revenue in excess of ₹2500 crore (US$370 million) for 2014–15.[citation needed]
Contents
[hide]History[edit]
Acharya Balkrishna established Patanjali Ayurved Limited in the year 2006 taking inspiration from Yogrishi Baba Ramdevfor the objective of establishing science of Ayurveda in accordance and coordinating with the latest technology and ancient wisdom.[3][4] Patanjali Ayurved was first started by manufacturing medicinal products. Gradually they have expanded their range from medicines to food items and cosmetics.[citation needed]
Baba Ramdev chose the path of swadeshi and by establishing Patanjali Ayurved he presented an indigenous option to buyers, on the other side he gave competition to different FMCG companies.[citation needed]
Turnover[edit]
Patanjali Ayurveda's annual turnover for the year 2014-15 increased to ₹2500 crore (US$370 million) as compared to previous turnovers of ₹1200 crore (US$180 million) (2013-14), ₹850 crore (US$130 million) (2012-13) and ₹450 crore(US$67 million) (2011-12).[5][6][7][8]
Production Units[edit]
Patanjali Food and Herbal Park is the production unit of Patanjali Ayurved situated at Padartha on Haridwar-Laksar road.[9]
Patanjali Ayurveda has a plan to build various units in India as well as in abroad, in this context work has already been started in Nepal.[10][11]
Outlets[edit]
Patanjali Ayurved has increased their outlet from 150-200 in 2012 to 4000 in 2015.[12][13] Patanjali is also selling their products online.[citation needed] The company is also planning to open Patanjali Ayurveda outlets at Railway Stations and Airports.[citation needed] [14]
Products[edit]
Patanjali Ayurved has its reach in all the categories of personal and food products.[15][16] The company manufactures 800 kinds[17] of products including 45 kinds of cosmetic products and 30 different types of food products like mustard oil, flour, butter, biscuits, spices, oil, sugar, juice, honey etc.[18][12]
Patanjali Ayurved products are cheaper as compare to other company products available in the market because they spend very less on advertising and marketing their products.[19][20]
Medicines[edit]
Patanjali Ayurved's Ayurvedic Manufacturing Division has over 300 medicines for treating a range of ailments and body conditions, from common cold to chronic paralysis.[21][22][23]
Atta Noodles[edit]
Patanajali Ayurved, the FMCG venture promoted by yoga guru Baba Ramdev, on Monday 15 Nov 2015 launched noodles aiming to take on Nestle's Maggi.[24]
Baby Products[edit]
Patanajali Ayurved launched beauty products and baby products. [25]
Controversy[edit]
The instant noodles brand launched by yoga teacher Ramdev has not obtained mandatory product approvals from the Food Safety and Regulatory Authority of India, officials said, even though Patanjali Atta Noodles packets display an "FSSAI licence number". [26] [27]
"Neither Patanjali Yog nor Aayush, which are the two brand names under which Ramdev's company have got licenses, have got any approval for manufacturing instant noodles," said Ashish Bahuguna, the acting CEO of the FSSAI or Food Safety and Standards Authority of India.[28] [29] [30]
Partnerships[edit]
Pittie Group[edit]
Patanjali Ayurveda's association with Mr.Krishnakumar Pittie, founder of Pittie Group of companies in the 'General Trade' category dates back to year 2012. Progressing its collaboration with the Pittie Group, Patanjali Ayurveda then formally tied up with Mr.Aditya Pittie, CEO of the company, in the 'Modern Trade' category, in year 2014. [12]
Reliance Stores[edit]
Patanjali Ayurveda Chywanprash and mustard oil etc. are available in Reliance's retail stores.[12] Stores like Mumbai's Big Bazaar, Hyper city and star bazar have stocks of Patanjali Products. It is also available in various ecommerce sites like BazaarCart.com[31]
DRDO[edit]
DRDO India's premier defence research organisation has roped Patanjali Ayurveda Limited to manufacture and market some of its herbal supplements and food products. DRDO entered into licensing agreements with Patanjali Ayurveda for transfer of Seabuckthorn technology based products developed by Defence Institute of High Altitude Research (DIHAR).[32][33]
Future Group[edit]
Patanjali Ayurveda announced its tie-up with Kishore Biyani's Future Group on 9 October 2015 under which, all the consumer products of the former will be available for the direct sale in the latter's Nilgiris, Food Bazar, Food Hall, Big Bazaar outlets.[34][35][36]
See also[edit]
References[edit]
- ^ Employment for more than 2 lac : Food & Herbal Park, Patanjali Ayurved, IBTL, 22 September 2012
- ^ 10 stunning facts about Baba Ramdev's Patanjali Ayurved, Yahoo Finance, 28 August 2015
- ^ Patanjali Ayurved FAQ's
- ^ Baba Ramdev's Business Empire Soars, With His Own Rising Profile, HuffPost India
- ^ Baba Ramdev's Patanjali bigger than Emami and Jyothy Labs, wish it was listed: CLSA report, The Economic Times
- ^ Baba Ramdev is revolutionising how Indians consume,Business Insider, BI India Bureau, 10 September 2015
- ^ Sinha, Partha; Singh, Namrata (13 January 2015), Ramdev expands empire beyond yoga to FMCG, business poised to touch Rs 2,000cr this fiscal, New Delhi: The Times of India, TNN
- ^ योग गुरु से बिजनस टाइकून बने बाबा रामदेव, 2000 करोड़ का FMCG कारोबार, Aadhiabadi, 13 January 2015
- ^ Patanjali Plans a Pre-Diwali Launch for its Noodles Brand, Advertising Age India, AdAge India Bureau, 26 October 2015[dead link]
- ^ बाबा रामदेव की हर्बल फैक्टरी अब नेपाल में, Web Dunia, 18 April 2015
- ^ नेपाल में बनाएंगे पतंजलि हर्बल पार्क : बालकृष्ण, Insight TV News Network, 28 February 2015
- ^ a b c d Here's Why Baba Ramdev Is Making Corporate India Uncomfortable, Indiatimes, 13 January 2015
- ^ Baba Ramdev expands empire beyond yoga to FMCG,The Economic Times, 13 January 2015
- ^ [1] "Ramdev's Patanjali Ayurved enters big retail with Future Group tie-up" India Today
- ^ Divya Putrajeevak Seed natural herb for treatment of infertility, NDTV, 29 January 2015
- ^ Ramdev's herbal factory now in Nepal, The Echo of Nepal, 17 April 2015
- ^ Ramdev's ayurvedic products to foray into open market,Business Today, 2 March 2012
- ^ योग के बाद बाबा रामदेव का कॉस्मेटिक से लेकर किराना में बढ़ता कारोबार, ABP News, 13 January 2015
- ^ We plan to open Patanjali outlets at Railway stations, airports: Ramdev, 21 May 2015
- ^ Ramdev turns his Ayurved enterprise into an FMCG empire, 28 June 2015
- ^ Ramdev's Patanjali biggest domestic buyer of red sanders, The Times of India, 17 April 2015
- ^ From soaps to cornflakes: Did you know Baba Ramdev is an FMCG tycoon, Firstpost, 13 January 2015
- ^ Balkrishna launches elixir for children, WebIndia, 23 May 2015
- ^ [2] "Ramdev's Patanjali launches noodles" The Hindu, November 16, 2015
- ^ [ http://www.business-standard.com/article/companies/ramdev-to-launch-swadeshi-baby-care-beauty-products-115111600927_1.html] "Patanjali to launch baby-care products" Business Standard, November 17, 2015
- ^ "विवादों में बाबा रामदेव का आटा नूडल्स, FSSAI ने भेजा नोटिस".ibnlive.com.
- ^ "Trouble mounts for Ramdev's Atta Noodles, FSSAI issues notice to Patanjali Ayurved - Navbharat Times". Navbharat Times.
- ^ [3] "No Approval for Patanjali Instant Noodles, Says Food Safety Regulator" NDTV, November 18, 2015
- ^ "'No licence for noodles': FSSAI slaps showcause on Patanjali". The Indian Express. 21 November 2015.
- ^ "Patanjali's Atta Noodles in trouble: Baba Ramdev breaks silence, drags Modi govt into controversy".www.oneindia.com.
- ^ खादी स्टोरों पर सजेगी बाबा रामदेव की दुकान?, Amar Ujala, 18 December 2014
- ^ Baba Ramdev's Patanjali Ayurveda to make, sell DRDO food products, ABP Live, 25 August 2015
- ^ Baba Ramdev's Patanjali Ayurveda To Sell DRDO Food Products, HuffPost India, 24 August 2015
- ^ फ्यूचर ग्रुप से रामदेव का करार, बिग बजार में मिलेंगे प्रोडक्ट, Nayi Duniya, 9 October 2015 zero width joiner character in
|title=at position 61 (help) - ^ फ्यूचर ग्रुप और बाबा रामदेव के पतंजलि आयुर्वेद के बीच टाई-अप, Patrika, 9 October 2015
- ^ Future Group partners Patanjali Ayurveda, The Hindu, 9 October 2015
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