Technoglitch
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Creating new product categories partly explains Patanjali’s early success. After amla juice, it started making the sort of esoteric local food and personal care products (aloe vera juice, hing (asafoetida) digestive golis, shikakai (acacia concinna) sherbets and spices that Indians otherwise shopped for atkhadi or gramudyog outlets.
“We suddenly saw a market gap that could be filled,” says Balkrishna. “Whatever people demanded, we kept making,” adds Ramdev, before taking a jibe at MNCs, “We don’t bother with expensive market research.” As the enterprise flourished, Patanjali became ambitious and started getting into established FMCG categories. The change also seems to have coincided with Ramdev’s growing political clout.
Today, Patanjali, Divya Pharmacy - the Ayurvedic medicine manufacturing company, and Patanjali Gram Udyoga Unit, produce nearly 600 products. Patanjali has now muscled into noodles, cornflakes and cookies. The group employs about 15,000 people in its units.
Ramdev says the business has grown 150 per cent this year, and may close this fiscal with a turnover of ₹5,000 crore. Though Ramdev claims that he and Balkrishna don’t set targets, in the next breath, he throws a ₹10,000-crore-turnover-in-three-years goal.
Ramping up distribution
Soon after sewing up a deal with Patanjali, Kishore Biyani of Future Group forecast that it would be among the top three FMCG manufacturer in a few years. "I would say Patanjali can become No.1 ahead of HUL. This is not based on optimistic high expectations but based on fact,” says Aditya Pittie, CEO of Pittie group who is the pan-India distributor for Patanjali’s modern trade and Mumbai distributor for its general trade (kirana shops) business. “In Mumbai, we are seeing 30 per cent growth month-on-month,” says Pittie.
Initially, Patanjali’s consumers came from its massive yoga and Ayurveda network. Patanjali Yog Samiti has 1 lakh branches, and 5 lakh teachers. Across India, there are 10,000 Patanjali Chikitsalaya and Aarogya Kendras. Ramdev claims he has interacted with at least 20 crore people who have attended his camps.
Now, the group is trying to expand its consumer base through professional channels. There are 80 super distributors and 700 distributors and 5,000 franchisee stores. After the much hyped deal with Biyani’s Future Group, Patanjali is now going after almost every other modern trade brand – from Spencer’s to More, to place its products.
“Our aim is that 15 per cent to 20 per cent of Patanjali’s turnover should come from modern trade,” says Pittie. The Group is setting up giant Patanjali Mega Marts too.
The monk who wants a billion-dollar company | Business Line
“We suddenly saw a market gap that could be filled,” says Balkrishna. “Whatever people demanded, we kept making,” adds Ramdev, before taking a jibe at MNCs, “We don’t bother with expensive market research.” As the enterprise flourished, Patanjali became ambitious and started getting into established FMCG categories. The change also seems to have coincided with Ramdev’s growing political clout.
Today, Patanjali, Divya Pharmacy - the Ayurvedic medicine manufacturing company, and Patanjali Gram Udyoga Unit, produce nearly 600 products. Patanjali has now muscled into noodles, cornflakes and cookies. The group employs about 15,000 people in its units.
Ramdev says the business has grown 150 per cent this year, and may close this fiscal with a turnover of ₹5,000 crore. Though Ramdev claims that he and Balkrishna don’t set targets, in the next breath, he throws a ₹10,000-crore-turnover-in-three-years goal.
Ramping up distribution
Soon after sewing up a deal with Patanjali, Kishore Biyani of Future Group forecast that it would be among the top three FMCG manufacturer in a few years. "I would say Patanjali can become No.1 ahead of HUL. This is not based on optimistic high expectations but based on fact,” says Aditya Pittie, CEO of Pittie group who is the pan-India distributor for Patanjali’s modern trade and Mumbai distributor for its general trade (kirana shops) business. “In Mumbai, we are seeing 30 per cent growth month-on-month,” says Pittie.
Initially, Patanjali’s consumers came from its massive yoga and Ayurveda network. Patanjali Yog Samiti has 1 lakh branches, and 5 lakh teachers. Across India, there are 10,000 Patanjali Chikitsalaya and Aarogya Kendras. Ramdev claims he has interacted with at least 20 crore people who have attended his camps.
Now, the group is trying to expand its consumer base through professional channels. There are 80 super distributors and 700 distributors and 5,000 franchisee stores. After the much hyped deal with Biyani’s Future Group, Patanjali is now going after almost every other modern trade brand – from Spencer’s to More, to place its products.
“Our aim is that 15 per cent to 20 per cent of Patanjali’s turnover should come from modern trade,” says Pittie. The Group is setting up giant Patanjali Mega Marts too.
The monk who wants a billion-dollar company | Business Line
