How a saffron clad Yogi built a billion-dollar firm?

A man of slender figure in saffron robes with a long mix match of white and black beard and hair tied in a bun comes on screen (TV smartphone holdings etc) every minute promoting the ayurvedic products is none but one of the most popular men – Yoga Guru Baba Ramdev, the brand ambassador of Patanjali Ayurved Limited.

The company was established in 2006 founded under the chief execution of Acharya Balkrishna, the Indian billionaire businessman who was reported by Forbes to have a net worth of US dollar 2.22 billion as of October 2020. The company was founded by Baba Ramdev. They seem to have a colleague relationship.

Journey

The journey of Patanjali basically began peddling their homemade herbal pills and ointments from modest that would eventually grow into Patanjali which was initially established only for herbal and medicinal pharmacy. In just 10 years, Patanjali Ayurved has grown from small ayurvedic pharmacy to a giant slayer in the FMCG sector after its corporation in 2006 with his registered office in New Delhi. The Company opened the largest food park (manufacturing unit) in Haridwar, Uttrakhand in about 50 lakh square feet. Gradually, Patanjali group built Acharyakulam Yog Gram, Patanjali Research Gram, Bharat Swabhiman trust, University of Patanjali, Patanjali Yogpeeth trust, Divya Yog Mandir, Patanjali Chikitsalaya, Patanjali Gram Udyog Nyas. From 2006 to 2018, in just 12 years, the company turnover has crossed Rs. 12,000 crore easily.

Production and dealing consumers

Patanjali food and herbal park at Haridwar is the main production facility. The company has the capacity of ₹ 35,000 crore (equivalent to ₹ 380 billion US dollar and 5.3 billion in 2019) Patanjali has 5000 Plus stores, 1000 + products and 50 cr. + consumption. The company is growing and evolving it as required from time to time. Patanjali doesn’t go with the specific types of consumer but they try to cover every type of consumer. The above statement can be supported by a variety of products such as Dant Kanti and fresh gel Dant Kanti for youngsters and many more.

Wide range and variety

When Patanjali became a brand, it further tried wide varieties of product. Patanjali has also launched beauty and baby products. In 2016, Patanjali announced to enter into the textile manufacturing sector. The company is reported to manufacture not only traditional kurta pajama but popular Western clothes such as jeans.

Acquisition

On 18 December 2019, the company acquired bankrupt Ruchi Soya industries at a valuation of ₹ 350 crore. At present, Ruchi Soya is mid cap company listed on NSE and BSE in India.

Branding, market management and marketing responsiveness

When we think of Patanjali, we remember one face of Baba Ramdev. It all started when Aastha channel offered Baba Ramdev to broadcast Yog Shivir on TV channel in 2002. Baba got into the limelight from then. Another point which is to be observed that the officials of the company ingeniously had the plan of unified branding of the Patanjali product (Patanjali Dant Kanti, Patanjali soap etc). The company offered their product in very standardized manner which companies from the likes of Baidyanath and Dabur (another ayurvedic product) did not understand. They could not get the market need and responsiveness of market but then Patanjali converted it into an opportunity.

The pair of Ramdev and Acharya Balkrishna are competent enough to take most of the decision. The company has a great approach to reach almost every place including retailers, malls, online shopping platforms, station etc. The company has one motto i.e.  to provide products that create an unbreakable trust of people.

Ritik

Emerging content writer