Baba’s Business Booming Sector : Ken Research

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Yoga guru, Baba Ramdev’s Patanjali Ayurved Ltd (PAL), which started as a small pharmacy, is now a serious contender in the FMCG race, with its revenue increasing at a CAGR of 65.7% during FY’2010-FY’2015, as per a report by market research fi rm, Ken Research.

“PAL’s competitors have received its entry in good health as they believe that the revival of their ‘Herbal Trend’ could help them reap higher profi ts by increasing sales in this segment. Competing brands have expressed that their products will not compete with PAL as the latter has helped in expanding the market,” says Supriya Goel, Director, Research and Operations, Ken Research.

PAL has expanded to sell the full range of consumer categories, from edible oils, biscuits and noodles to toothpaste, hair and skin care products, groceries and even detergent. The fi rm has 3 manufacturing plants located in Haridwar for production and sale of products, as well as, a network of 1,78,000 retail outlets across the country. With an estimated customer base in the neighbourhood 70 mn people, PAL’s product lines have been devised to appeal to both rural and urban populations.

The company’s current revenue represents only the tip of the iceberg, as Patanjali’s products are only reaching 0.2 mn kirana (mom and pop grocery store) stores, whereas 90% of FMCG products are sold through kirana stores across the country. Having laid a strong foundation in FMCG, PAL is now geared to hoist its fl ag in other natural subsegments.

The company intends to sell liquid milk and is focusing on six sectors—natural medicine, natural food, natural cosmetics, dairy products, cattle feed and natural manure. The company intends to reach a target of Rs 10,000 crore by 2017.

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Ankur Gupta, Head Marketing & Communications
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