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Business Perspective in Global Context

Global Prespective Report- Patanjali Ayurveda limited

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Global Prespective Report- Patanjali Ayurveda limited

To look into the growth of Patanjali ,to study its marketing and future objectives and correlate it with
theories and expert opinion ,analyse and recommend actions for future course .

Patanjali Ayurved Limited is an Indian FMCG company. Manufacturing units and headquarters are
located in the industrial area of Haridwar while the registered office is located at Delhi. The company
manufactures mineral and herbal products. It has also manufacturing units in Nepal under the
trademark Nepal Gramudhyog and imports majority of herbs in Indian from Himalayas of
Nepal. According to CLSA and HSBC , Patanjali is the fastest growing FMCG company in India.

Estd. year : 2006

Company : Patanjali Ayurveda Pvt Ltd.
Founded by : Acharaya Balkrishna and Baba Ramdev
Number of employees: 200000
Its motto :
"Humara ek simple funda hai: MNCs ko replace karna (We have a simple principle: we want to replace
MNCs)," says Ramdev. "We don't want to put anyone down, but we would like to instill Swadeshi pride
so that Indian money does not go out of the country. We are not into any such war rooms. We don't
analyze other companies' strategies or conduct market surveys and feasibility studies. It is only when
people ask for cheap and healthy options that we try to respond." People's trust in us has increased. It
brought us a lot of attention and the demand for our products have shot up considerably."

Three basic principle of product development at Patanjali:

1) Competitive pricing
2) Purity of raw materials used
3) Innovation.

Global Prespective Report- Patanjali Ayurveda limited

Its Distribution network :

Global Prespective Report- Patanjali Ayurveda limited

Revenue growth and breakup:

Year by year patanjali has show remarkable growth in its revenue since its inception in 2006 and in 20152016 the revenue of the company touched the rupee 5000 crore mark.

Patanjali Ayurved operates in six broder segments:

1 Food
2 Healthcare
3 Toiletries
4 Dental products
5 Hair care
6 Cosmetics

Global Prespective Report- Patanjali Ayurveda limited

Patanjali major products:

Global Prespective Report- Patanjali Ayurveda limited

SWOT Analysis:

Natural products without any side effects.

Solid base of trust because of Baba Ramdev.

Mix of Ayurveda and yoga that attracts people.

Presence of established distribution network in urban areas.

Social responsibility to make people healthy.


Low export levels

Absense of established distribution network in rural areas.
Strong competitors and presence of substitute products.
Lack of marketing and promotional activities.
High price of some products.


Untapped rural market.

Large domestic market -over a billion population.
Changing lifestyle and rising percapital income of India.
export opportunities as Indian ayurveda is trusted in the entire world.

HUL and its own ayurveda brand AYUSH that they are rebranding.
Strong political connect of the excisiting competitors.
Thers has been many attacks from political parties on company for adulteration .This can hamper its
main USO that is trust.
Policies Since the company uses cultivated herbs any policies in future related to them can be a
hindrance in growth of patanjali.

Global Prespective Report- Patanjali Ayurveda limited

Market and Competetion:
Indian FMCG market is a market which has a very wide range of customers. There are many competitors
in all the categories and although they all have similar products available at almost similar prices,
Patanjali is trying to prove itself different through their marketing strategies. However, entry to this
business is easy (low entry barriers) and this fact has been utilized very efficiently to result in combined
benefit for both Patanjali and the consumers.

Major players in food processing industry :




Fruit juices, cooking paste, honey


Branded wheat flour, biscuits, ready to-eat

food, confectionary


Ice cream, branded wheat flour, bread, sauces,



Instant drink, health drink, soft drink

concentrates, flavours


Soft drinks, potato chips, snack food, fruit



Vegetable oils


Coffee, chocolates, confectionary, instant

noodles, milk products, beverages, health drinks

Global Prespective Report- Patanjali Ayurveda limited

Marketing system of patanjali:
Marketing of the Patanjali group is viable through the detailed marketing strategy which addresses each
target group. Broadly the marketing strategy includes the following:
The most important promotional activity involves yoga campaign by Baba Ramdev and the Patanjali
Advertising through business journals and newspapers in India and abroad with the help of an
advertising agency
Group also has interaction with foreign embassies/trade counsels in India.
The Company has established a web site in the Internet. This will ensure international visibility and
Group regularly Interact to Industry and Business Associations
They are also bringing out attractive brochures and other literature with the help of advertising agency.

Suppy Chain Management

Patanjali follows a very smooth Supply chain management. The three parts of supply chain are product
flow, cash flow and information flow. In supply chain of Patanjali all these are maintained very smoothly.
Supply Chain of Patanjali can be well understood with the help of some examples. First we will take the
example of sale of Patanjali products. They sell their products only through their own outlets opened in
almost every district/city of India. Each outlet sends its demand to central office at Haridwar.Then based
on demand, different products are gathered from various units of Patanjali viz. Divya Pharmacy, Patanjali
Ayurved, Patanjali Foods etc. Then the items are delivered to the respective outletsmainly through
Patanjali transport. This shows a good example of Supply chain management. Next wecan take the case
of Patanjali Gram at Uttarkashi. Here Swami Haridasji has presented a very goodexample of SCM. They
collect cow urine from rural households. After initial filtration, it is sent toPatanjali Food and Herbal Park
where it is processed and is sent to various Patanjali outlets fordistribution.The part of money received
from the sale of cow urine is kept by Patanjali Food and Herbal Park Limited as processing cost and the
rest is sent to the village. Some amount is distributed to the people as a price of cows urine, rest is used
for the development of the village like establishing necessary infrastructure, building schools etc. The
Patanjali Mega Food Park (PMFP) has been envisaged to help in creation of enabling infrastructure for
food processing and a comprehensive farm-to-plate supply chain system. The initiative aims to seek
maximum value addition by backward as well as forward integration between the farmers, factory and the
market. It can be said that the supply chain doesnt have any intermediary in between but rather its a
direct from supplier to producer to consumer. This also helps in reducing the cost because it avoids the
unnecessary commission cost and other related charges of the intermediaries

Global Prespective Report- Patanjali Ayurveda limited

Research and Development in Patanjali :

In order to keep in pace with the latest developments in the Agricultural sector and also to look for new
innovative methods of production, Patanjali has to its credit a well-developed Research and Development
section. The main aims of their R&D section are:

To conserve and preserve more agricultural lands and increase their productivity.

To introduce more hybrid varieties of seeds and crops

To retain the nutritional content in the processed food

To study the botanical behaviour at various geographies and to find the best possible techniques of
cultivation and suitable crops

Search and unearth the age old homely and Ayurvedic recipes using natural ingredients to replace
the chemical contents of shampoos and soaps

To develop agro- technology of potential agricultural plants

To avoid problems of adulterants and artificial synthesizers in the food

To prepare more herbarium specimen sheets and establishment of Herbarium of dried specimens
of all the economic useful plant species e.g. roots, leaves, flowers, seeds, bark, fruits etc.

To multiply agricultural plants through tissue culture and biotechnology

To develop agro technology based on indigenous methods of seed selection and organic farming


Global Prespective Report- Patanjali Ayurveda limited

Experts review and Management principles:
Damodar Mall, a retail pro with an astute understanding of what consumers want, came up with an
interesting hypothesis.

Ever wondered why Amish Tripathi's The Shiva Trilogy became the fastest selling book series in
the history of Indian publishing, with 2.5 million copies in print and over Rs 70 crore in sales?

Or why Devdutt Patnaik is such a hit on the speaking circuit? As consumers get confident, they
like contemporary things that spring from their cultural identity, says Mr Mall.

The success of Amul, on the other hand, is about the timeless appeal of "in your face" value or
authenticity. And finally, the concept of Ayush, or the appeal of all things natural, and the concept
of wellness.

Patanjali is the multiplier effect of these three appeal vectors.

Mr. Devendra Chawla, the president of the Future Group, says about patanjali:
Two major factors responsible for phenomenal growth of Patanjali is Trust and Direct Marketing
Due to the recent scams and adulteration in consumer products public has lost trust on consumer products
of leadind FMCGs and that is what Patanjali is counting upon .The combination of ayurveda and yoga
and then direct promotions by baba ramdev during his yoga shivirs and lesson is a good and a trustworthy
promotion of Patanjali.People have no reason to doubt the authenticity of the products as it is promoted
by baba Ramdev who has dedicated his life for teaching yoga and a healthy life style to the public.


Global Prespective Report- Patanjali Ayurveda limited

Future Scenario :

PAL have very aggressive growth plans in future which is going to make competitors life very hard. PAL
aims at turnover of over INR 10000 crores in 2016-17 more than double from the INR 5000 crores in the
fiscal year 2015-16. PAL is also planning to invest INR 1000 crores in 2016 in setting up 5 to 6 new
processing units in states like Assam, Maharashtra, MP, Rajasthan, Haryana and UP. The factories will
come up at Drought hit areas like Vidarbha in Maharashtra and Bundelkhand region in UP & MP. 4
factories will be operational by the end of Q1 2017 which will generate more than 5 lacs jobs. They have
plans to spend around INR 500 crores on cow protection, a research centre and setting up world class
universities for Vedik education. PAL is planning to set up Cosmetic and Ayurvedic medicine factory in
Birgunj, Nepal as well where they will manufacture various cosmetic and herbal products.

After going through the above mentioned information we can recommend the following two options by
which Patanjali can expand its business:
Trust is what has made Patanjali grow , maintain the quality and make the manufacturing process of
the company more transparent so that public do not lose trust due to rumors
To tap the rural market they should start selling their product through normal retail stores because
exclusive Patanjali stores will not be financially feasible in rural areas.
Go Global: Patanjali is already a well-known brand in India & Nepal. But there is huge untapped
region which they should try to capture.
i) Africa: Following the footsteps of Dabur they can start

exporting their FMCG products to

ii) Now a days yoga is very popular in USA and European

countries. But the Americans and

Europeans emphasize on the material value only i.e. physical activities. Patanjali can try to
enter the market by making a rebranding of yoga system and also they can come up with
some products as per American standards and European standards.


Global Prespective Report- Patanjali Ayurveda limited

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