Here’s how two sadhus totally changed the game in the FMCG sector
Started as a small pharmacy in 1997, Patanjali Ayurveda Limited (PAL), today, is one of the biggest FMCG companies in India. Let’s start with a doha by ‘Kabir Das’
गुरू गोविन्द दोऊ खड़े, काके लागूं पांय ।
बलिहारी गुरू अपने गोविन्द दियो बताय ।।
India has always been the country of sadhus, yogis and rishis. And we, the people of India worship these yogis and sadhus just as much we worship gods.
Foundation of Patanjali
Patanjali is formed on the rock-solid foundation of people’s trust in Baba Ramdev and Ayurveda. Being the front face of Patanjali, Ramdev played a great role in building its brand value. Baba Ramdev started out as a yoga guru and totally revolutionized the yoga scenario in the whole world. The benefits of doing yoga definitely encouraged people to put their faith in Patanjali.
Back in 2013-14 Baba Ramdev campaigned a lot for Narendra Modi led BJP and it strengthened the Baba-Modi Bond. Ramdev’s connection with Narendra Modi helped him a lot in scaling up the company and so in no time Patanjali built its manufacturing units in Noida, Nagpur, Indore, etc. and opened thousands of retail stores all over the nation.
Patanjali has benefited from more than an estimated $46 million in discounts for land acquisitions in BJP-controlled states, Reuters revealed in May 2017.
Baba as the brand ambassador of company fuelled its marketing campaigns and helped the company to drive in huge public attention. Baba Ramdev has a huge following on social media as well. He is very active on television and always remains in the news headlines
Patanjali also used nationalism to promote its products. It uses taglines like ‘Videshi Chhodo Swadeshi Apnao’.
THE PRODUCT RANGE AND SMART PRICING
Patanjali has a huge range of products. It manufactures over 2500 products. Unlike other Ayurved based companies it doesn’t just sell ayurvedic products, it is into cosmetics, food & beverages and is also planning to dive into textile manufacturing.
Yet another reason for Patanjali’s success is the thrift it practices. “Our profit margins are minuscule because the main aim is not to make profit,” said Ramdev. “Profiting from patients is against the philosophy of Ayurveda, so we aim at a minimum profit from our health products. Our input costs are low because we source directly from farmers, avoiding middlemen.” Salaries are also modest. “Humare yahaan crore ki salary paane waala koi vyakti nahee hai, (There is no one in our company who is paid crores as salary),” he added. “Most companies have administrative costs of around 10 percent of their revenue, but in our case, it is just two percent.”
REVENUE & GROWTH OVER THE YEARS
The company has grown exponentially over the past few years. Have a look at this graph
Patanjali is just behind Hindustan Unilever in terms of revenue generation. It has surpassed many FMCG giants which have been in the market since ages
SO EVERYTHING IS GREAT EXCEPT
See this is the problem with blind trust, people started trusting patanjali blindly and that’s what gave them the confidence to fool people. So they started selling cow’s piss that too at the price of about Rs 90/litre with the claim that it cures eczema, controls diabetes and cancer. Cures cancer? Cow’s piss? Seriously? So where’s proof ?
There have been many instances where Patanjali products were found to be of substandard quality like Amla juice, atta noodles, and some other ayurvedic products.
You can read more about it in detail – Here