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INTRODUCTIONINTRODUCTION
It was founded by Acharya balkrishnan & Yoga guru RAMDEV
PATANJALI PRIVATE LTD. Setup in 2006
Converted into patanjali public company in 2007
OBJECTIVE - sell FMCG, herbal, and ayurvedic products at a cheaper price than
competitors
SETUP VERIOUS COMPANY WITH THE HELP OF by Acharya balkrishnan
PATANJALI BIO RESEARCH INSTITUTE
PATANJALI FOOD & HERBAL PARK
PATANJALI YOGPEETH TRUST
PATANJALI GRAMODHYOG
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PORTER’s FIVE FORCESPORTER’s FIVE FORCES
Bargaining power of buyers
o Reliable offering from local pharmaceutical industry
o Time factor associated with ayurvedic industry
It is a long term process
Short term users switch to allopathic
Patanjali need a mix of medicines as well as
Yoga to get the best result
o Preference for alternate medicines when it comes
to specific disease
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PORTER’s FIVE FORCESPORTER’s FIVE FORCES
Bargaining power of supplier
Political conflicts and lack of Govt. support-
Due to many of Baba Ramdev’s socialist and anti political activity certain
sect.suppliers are facing pressure at a poitical level not to provide
regular supplies to the patanjali.As a result they had set up their own
herbal gardens which has over 200 medicinal herbs and plant.
Rare herbs gives suppliers immense bargaining power
Certain medicinal herb which can be grown only in certain climate zone
having certain type of soil for that patanjali rely on external supplier.
This directly hands immense bargaining power to the supplier as they
can inflate the price way beyond the actual market rate.
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PORTER’s FIVE FORCESPORTER’s FIVE FORCES
THREAT OF SUBSTITUTE
o Allopathic industry is run in a highly organized way
It uses multiple strategies to sale their product
It gives incentives and bonus to prescribe their medicines
People always listen to highly qualified Doctors
o Threat from homeopathic medicines
Lack of awareness about Ayurveda
Certain sections completely rely on Homeopathic
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PORTER’s FIVE FORCESPORTER’s FIVE FORCES
hreat of new entrants-:
. Sub par products from new entrants
Some of the new entrant in to the herbal product segment offer sub
ubstandard product made out of substitute plant rather than actual herbs
or specific use. This can lead to over all degradation of the reputation of
erbal and ayurvedic product.
. Emergence of new local and national players
Due to increasing popularity of ayurvedic and natural product both nationally
nd globally, many new firm entering this segment. They advertise heavily
hrough multiple channels.
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SWOT AnalysisSWOT Analysis
STRENGTH:-
Low opportunity cost:-
The company enjoys low operational costs and more operational
profit % compare to many other big players like Ranbaxy & sons
pharmaceuticals
Sl No. Company Operating Cost in(Rupees)
1 PAL 72,06,071
2 Sun Pharmaceuticals 7,14,70,400
3 Cipla Ltd. 6,16,14,800
4 Dabur Ltd. 5,22,83,000
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PATANJALI AROGYA KENDRA > 3,790
PATANJALI CHIKITSALYA 1,088
PATANJALI SWADESHI KENDRA 11,000
SWOT AnalysisSWOT Analysis
Large Distribution Network
PAL has an extensive distribution network spread across the Country
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SWOT AnalysisSWOT Analysis
WEAKNESS:-
Strong Global Competition
PAL has been extensively doing well in India but to establish it
Globally, needs a lot of strategy and hard work. Due to the presence
of well establish players in the market like BACFO,HIMALAYA
Etc.
Low Expert Levels
Presently the company is focused only in India. Extensive growth
globally has many hindrance from expert policies to International
rules in the field of medicines Etc.