A REPORT ON PATANJALI AYURVEDA

By Varun Mishra Posted May 26, 2016 In Branding, Business, Frontpage, Health, Lifestyle, Marketing

Introduction

Patanjali started its operations with Patanjali yogpeeth in Hardiwar, Uttarakhand. Patanjali
yogpeeth is one of the largest yoga institutes in the country. Swami Ramdevji Maharaj and
Acharya Balkrishanaji Maharaj set up Patanjali Ayurveda Pvt Ltd for treatment, research
and development and for the manufacturing of ayurvedic medicines in Yoga and Ayurveda.

Patanjali Yogpeeth oers treatment and scientic research and has brought a revolution
when it comes healthcare in the country with the combined approach of Yoga and
Ayurveda.

The infrastructural facilities at Patanjali Yogpeeth includes an OPD for free medical
consultation, IPD of thousand beds, laboratory for test investigation of radiology,
cardiology and pathology, a yoga research department, free yoga classes, high quality
ayurvedic medicines manufactured by Divya pharmacy, facilities of library and reading
room along with a cyber caf, a huge auditorium, apartments for senior citizens, a grand
museum and a sale outlet of 11,000 square feet for literature related to yoga and
Ayurveda.

Patanjali Ayurveda- Entry into FMCG

Patanjali started o manufacturing bulk ayurvedic medicines later branching its operations
into FMCG markets as well. Since, the FMCG market has low entry barriers, Patanjali soon
established itself as a major consumer goods manufacturer. The recent trends clearly
imply that the companys priorities are shifting from medicines to consumer goods,
perhaps because the net revenues earned through FMCG are on par with ayurvedic
medicines.

Patanjali Ayurveda Current Market Insights

Patanjali as a brand currently has more than 350 products from Soap to Toothpaste and
from Oats to Health drinks. The 2014-2015 revenue of Patanjali Ayurveda crosses Rs. 2000
crore gures. In January 2016, IIFL said Patanjali Ayurveda Ltd has, in a short span of less
than a decade, recorded a turnover higher than what several companies have managed to
achieve over several decades. There is no doubt that Patanjali is a disruptive force in the
FMCG space and is a credible threat for the incumbents. The industrial data indicates that
the brand has a market share of 4-5%.

Patanjali Sales (2012-2015)

Focus on revenue over protability

As per the report by edelresearch The company is well on course to achieve its targeted
revenue of ~INR5060bn in FY16 (INR20.2bn in FY15). Even though the thrust is not on
protability, the company managed to clock ~20% EBITDA margin in FY15, aided by better
cost management (latest machinery and strong R&D capabilities) and lower A&P spends
Proactive moves in Innovation

Patanjali Ayurveda is aggressively planning to enter into every consumer category.

Currently Patanjali Ghee is expected to be at INR 12 billion in the nancial year 2016 and if
it gains solid distribution expertise, it could pose a serious threat to its competitors. An
innovative R&D facility equipped with latest technology, Patanjali has also launched a
mobile app which helps the consumer to locate retail outlets and for online ordering of
Patanjali products

Patanjalis Supply Chain Management

The three phases of patanjalis supply chain are product ow, information ow and cash
ow. Patanjali has recently completed a tie up with Future group to sell the products. They
also sell their products through their own outlets opened in almost every district/city of
India. Each outlet has to send their demand to central oce at Hardiwar. Then as per the
demand, various products are gathered from various units of Patanjali. The items are
delivered to outlets majorly through Patanjali transport.

Sales and Distribution Patanjali

Patanjali provides sale of products online and can also be procured through post by sending the money
through demand draft
Patanjali herbal products are available at Post Oces across the country
Patanjali also has Patanjali Chikatsalayas and Patanjali Arogya Kendra in almost all the cities of the
country

To strengthen the distribution Patanjali is also implementing ERP which will help them in
managing the inventory.

Patanjalis R&D facility

Patanjalis R&D center has all the advanced technology and machinery required for testing
the products. The company also has a separate R&D department for each of its production
units. The company also has a high-end central R&D facility.

Products at R&D level :

 Butter milk in powdered form
Weight gain and loss products
Madhuram
Masala Oats

Patanjali Products in the Market

Patanjalis Pipeline

Patanjali has a very strong pipeline, thanks to their innovative and huge R&D setup.

The new products include:

Patanjali yoga wear (Vastram)

Dant Kanti Advance
Sugar free Chyawanprash
PowerVita
Seabuck thorn dietry supplement

Pricing of Patanjali products vs its competitors

StrengthSWOT

Spiritual connect with the consumer en masse.

Herbal products with natural ingredients
Strong and Innovative R&D
Baba Ramdev face of the brand

Weakness

Controversies like noodles not approved by FSSAI at the time of launching

Products like putrajeewak which creates negative impact on the brand
Strong competitors and low exports

Opportunity

There is a large domestic market for FMCG Products

Low entry barrier for new and innovative herbal products

Threats

Competitors keeping a close eye on the growth of Patanjali Ayurveda

Controversies around the Patanjali group
Weak supply chain as compared to the competitors

This article is authored by Mr.Manan Sethiand published by Varun Mishra.