a case study on the structure and growth strategies of patanjali and how a it created a swadeshi moment and left many huge FMGCs behind .

1. A CASE STUDY ON INDIAN COMPANY : PATANJALI AAYURVED LIMITED
SUBMITTED TO
MS. KALYANEE RAJANPREPARED BY:
• PINKISH POPLI-
205
B.COM (P) II ---IV SEM
BUS INESS COMMUNICATION

2. Demystifying the Brand
PATANJALI
- A Case on structure , growth
strategies and controversies of
Patanjali Ayurved Ltd.

3. ABSTRACT
This case study is about Patanjali Ayurved Ltd., also known as
PAL, an Indian FMCG which has registered phenomenal growth
in the last 5 years.
The case tracks the different strategies which worked for Patanjali
Ayurved Ltd (PAL) in the hyper competitive Indian FMCG sector
and the controversies it survived.

4. Overview
Patanjali Ayurved was co -founded by Acharya Balkrishna and Baba
Ramdev to propagate the science of ayurved. Today, some of the ayurvedic
products produced by PAL are a strong synergy between ancient wisdom
and modern technology.
The Company was established on 13th January, 2006 with
Acharya Balkrishna as its majority state holder as
well as managing Director with 92% stake. Its registered office is at D-26,
PUSHPANJALI BIJWASAN lNEW DELHI .
Even though Acharya Balkrishna is the primary stakeholder of the company
(92% stake), the main driving force behind Patanjali Ayurved is the
charisma and philosophy of Baba Ramdev.

5. CIN U24237DL2006PLC144789
INCORPORATED
DATE / AGE
13 JAN. 2006 / 11
LAST AGM DATE 30 SEPT 2015
AUTHORISED
CAPITAL
5000.0 LAC INR
PAID UP CAPITAL 4132.2108 LAC INR
INDUSTRY MANUFACTURING ( FMCG )
TYPE UNLISTED PUBLIC COMPANY
CATEGORY COMPANY LIMITED BY SHARE
As on 30-01-17

6. DIRECTORS
NAME PAN/DIN DESIGNAT
ION
MUKTA ANAND 01778508 DIRECTOR
AJAY KUMAR ARYA 02013411 DIRECTOR
RAKESH MITTAL 6759857 DIRECTOR
SUMEDHA 6974737 DIRECTOR
DEV RAJ ARYA AENPA2640H CFO(KEY MANAGERAIL
PERSON)
VIGYAN DEEP SHARMA AUGPS1563E KMP
ACHARYA BALKRISHAN 01778007 MANAGING DIRECTOR
Source: registrar of companies As on 31-03-17

7. Business Partners:-
Bijoor Group
Mudra Group .
Mumbai Big Bazaar
Hyper City and Star Bazaar
BazaarCart.com
Aditya’s Pittie Group
Kishore Biyani’s Future
Group

8. Organizational Structure

10. PRODUCTS PORTFOLIO
FOOD
( READY AND GROCERY)
PERSONAL
CARE
HOUSEHOLD
PRODUCTS
MEDICINS &
HEALTHCARE
BEVERAGES
Image source: patanjaliayurved.net

12. 525 + FOOD PRODUCTS
INLCUDING 45 TYPE OF COSMETICS AND 30 TYPES OF FOOD
300 +
MEDICINS
Image source: patanjaliayurved.net

13. 47000RETAIL COUNTER
10000PATANJALI AROGYA KENDRA 5000DISTRIBUTORS
6 PROPOSED FACTORIES18 MULTIPLE WAREHOUSE
300 PATANJALI CHIKITSALYA
100 MEGA STORES

14.  Patanjali has grown exponentially in terms of revenue in the past few years
 The turnoverof Patanjali Ayurvedic Limited of Baba Ramdev grew
150% to more than Rs 5000 crore in 2015-16 from about Rs
2000 crore in the previous year.
DESI BUSTLE VS MNC MUSCLE
GROWTH OF PATANJALI
0
1000
2000
3000
4000
5000
6000
2011 2012 2013 2014 2015 2016
REVENUE(INCRORES
YEAR
Series1
REVENUE TREND OF PATANJALI

16. combined annual growth rate of
64.5 % compared to
the industry average
of 17.5%, for FY16riding
on innovation and brand visibility.
CAGR

17. REVENUE
COMPOSITION
SALES
COMPOSITION
OTHER
PRODUCTs
60%
GHEE
TOOTHPASTE
HAIR OIL
SHAMPOO
40%
4 BEST
SELLING
PRODUCTs
40%
 COW’S GHEE – Rs. 1308 cr.
FY 15-16
 DANT KANTI- Rs 425 cr. KESH KANTI- Rs 325 cr.

18. GROWTH OF SWADESHI
STRATAGIES OF PAL
 PRICING STRATEGY :
VALUE FOR MONEY
 A HEALTH CONSCIOUS
CAPATIVE MARKET
 NEED CREATION OF ‘’SWADESHI ‘’
 EMOTIONAL SATISFACTION AND CONTRIBUTION FEELING

19. SWADESHI mantra works wonders for
Patanjali
RAMDEV’S concept of SWADESHI began
with the
BHARAT SWABHIMAAN ANDOLAN
“Swadeshi is our goal,” says Ramdev,
adding in the next breath that “hum
kamai nahin, bhalai kar rahe hain; vyapar
nahin, upkaar” (We are not doing this for
profits, but for good deeds).
In his yoga shivirs ramdev would tell people about the
the evils of MNCs , the virtues of product made in India,
the corruption of corporates , the exploitation of farmers,
the cancerous effects of fertilizers and chemicals and
just about everything that surrounds his products.

20. Baba Ramdev and Acharya BalKrishna knew that
they have created a captive market with their efforts
since last one and a half decade,which values health,
yoga & pranayama.
This captive market is health conscious,
looks out for affordable products &
believes in the philosophy of SWADESHI (HOME
GROWN)
When Patanjali ayurved launched its product his
CAPTIVE MARKET

21. Patanjali Ayurved's products are sold at a
price of 15% - 30% lower than that of
competition.
Except for Patanjali Cow Ghee,
which is sold at a premium in the market.
PENETRATION
PRICING
STRATEGY.
PAL works on low margin,
High volume model and
keeps advertisement costs to bare minimum.
The products are thus available at a much
cheaper costs as compared to its peers

22. Every product has a market penetration pricing strategy.
The pricing strategy has helped Patanjali establish itself in the marketplace

23. 10,000 CRORES

25. CAUGHT ON THE WRONG FOOT
PAL’s Controversies and legal tangles

26. The product courted
controversy when on May 1,
2015 Rajya Sabha MPs led by
JD(U)'s K C Tyagi demanded a
ban on it and sought stringent
action against the
manufacturer.
The matter raised huge hue and
cry
‘Putrajeevak Vati’ (son breeding seed) promises a male
child ??? )
The Centre had then directed the Uttarakhand
government to launch an inquiry into the matter

27. "The botanical name of this medicine is 'Putranjiva roxburghi'.
It's called 'Putrajeevak' in Hindi, Gujarati, Kannada, Marathi, and other languages.
What do I do when it's very name is Putrajeevak?’’ said Ramdev
."If it creates any confusion, we will add a line to
the product saying it has nothing to do with the
birth of a male or a female child?“
Ramdev said at a press conference.

28. The committee, headed by AYUSH Drug Controller PD Chamoli,
however, gave a clean chit to Ramdev, saying that the nomenclature of the drug was
IN ACCORDANCE WITH THE ANCIENT AYURVEDIC BOOKS AND LITERATURE
But, after the Chamoli committee report, the state govt. asked the DG Health and state
law department to examine the matter and submit its report.
Uttarakhand government is yet to submit its report to the Centre.

29. A fineof Rs 11 lakh
has been imposed on PATANJALI Ayurved Ltd,
by a city court on charges of misbranding
and misrepresentation of its products
On August 16, 2012, the Haridwar health department’s food
safety division took samples of a few Patanjali products and
sent them for testing. However, when the products failed the
tests, the food safety division, in November 2012, filed a case.

30. The case went on for four years and on
December 1,2016 HARIDWAR'S
ADDITIONAL DISTRICT
MAGISTRATE, found the company guilty
of "releasing misleading
advertisements by selling
certain products with its
labels although they were
being manufactured by some
other firm."
Samples of honey, mustard oil,
pineapple jam, gram flour and
iodised salt were sent for
testing and the test results
showed that Patanjali was not
the manufacturer of the
products, This was Patanjali’s
attempt to mislead buyers,”
Reacting to the order, Acharya Balkrishna said "I have not received
the order yet, only heard about it. I think this is a political ploy to
tarnish Patanjali's image. We will react suitably to it"

31. Patanjali Atta Noodles controversy:
Have taken permission from FSSAI, says Ramdev.
Nov 2015-The Food Safety and Regulatory Authority of India (FSSAI) issued a statement that
Patanjali Atta Noodles were not approved by the agency asking PAL to send their explanations in
15 days.
Refuting all allegations ,Ramdev said:
"We have all the documents with us. We shall send all the documents to the authorities.’’
While Patanjali cited its license to manufacture pasta the, sources in the
authority pointed out that the company’s license for pasta (macaroni,
spaghetti vermicelli) does not entitle it to manufacture/sell instant noodles,
which is a pre-cooked item sold with a non-standardized masala mix.

32. IS PRODUCT APPROVAL REQUIRED?
As per the FSS Act Rules & Regulations (under
Clause 22), food business operators (FBOs)
who manufacture proprietary foods, functional
foods, health supplements, genetically
modified foods, non-conventional food
products already licensed and existing in the
market and have been introduced for the first
time in India, are required to apply for product
approval with FSSAI.
COURT’SVERDICT
The Bombay High Court had quashed the FSSAI
advisory on product approval advisory.
The Bombay High Court opined that the
advisory, which required that prior approval be
taken for dietary foods and health
supplements, was “unlawful”.
ADVISORY OF FSSAI ON 11 MAY 2013
No person shall manufacture, distribute, sell or
import any novel food, genetically modified
articles of food, irradiated food, organic foods,
foods for special dietary uses, health
supplements, proprietary foods and such other
articles of food without taking product
approval from the central government
The SUPREME COURT has backed Bombay
High Court’s previous verdict.
CURRENT
The existing manufacturers believe
that product approval is not required for these
neutraceuticals and other health food
products, which are already licensed and
available in the open market.
STATUS
THE LEGAL TANGLE

33. Patanjali Ayurved targets
Rs.10,000 Crore revenue in FY17
Source: timesofindia.com

34. PAL is a trendsetter in the Indian FMCG sector.
It has grown at a phenomenal pace in the last half a decade
Will PAL reach a turnover of close Rs.10,000 crore this fiscal or an ambitious turnover of
close to USD 3 billion (Rs.20,000 crore) by 2020?
Whatever the answer to these questions is, nobody can take the success away from both
Baba Ramdev and Acharya Balkrishna at the present moment. The disruptive force that they
have created in the Indian FMCG industry is set to benefit the consumers for a long time to
come.
CONCLUSION AND THE FUTURE
“It’s just the start. Ab tak Colgate ka toh gate khul gaya, Nestle ka
toh panchhi urne wala hai, Pantene ka toh pant gila hone wala hai;
aur do saal me, Unilever ka lever kharab ho jayega’’
---Ramdev at a press conference at new delhi on 27 april 2016

35. Reference :
• Organisational structure-Business organisation and
management-CB Gupta Arya publication
• Registrar of companies.
• AOA,MOA of patanajli ayurved ltd.
• Business world.-15-AUG-2106
• Wikipedia.com/patanjaliaayurvedltd. accessed on 25-03-2017
• Patanjali Ayurved, waiting in the wings, Edelweiss Research
• Mass Customization: The Success Story of Baba Ramdev,
Mrinalini Deshpande, Indian School of Mines.
• http://patanjaliayurveda.com/en/about-us. accessed on 25-03-2017
• http://economictimes.indiatimes.com/industry/cons-
products/fmcg/patanjali-enters-big-retail-with-future-group-tie-
up/articleshow/49285002.cms. accessed on 25-03-2017
• http://www.vccircle.com/news/fmcg/2016/02/19/role-small-stores-
patanjalis-expanding-footprint. accessed on 25-03-2017

36. THANKYOU
PREPARED BY:
•PINKISH POPLI-205