4. INTRODUCTION TO PATANJALI AYURVED
PATANJALI AYURVED IS AN INDIAN
CONGLOMERATE WHICH MANUFACTURES AND
MARKETS A WIDE RANGE OF AYURVEDA, NATURAL
AND ORGANIC FOOD PRODUCTS, ALONG WITH
PERSONAL CARE AND HOME CARE ITEMS.
FOUNDED BY BABA RAMDEV AND ACHARYA
BALKRISHNA, IT HAS GAINED SIGNIFICANT
POPULARITY DUE TO ITS EMPHASIS ON
TRADITIONAL PRACTICES AND ETHICAL PRINCIPLES.
5. PATANJALI AYURVEDA LTD. FOUNDED IN 2006, BY ACHARYA BALKRISHNA.
HEAD OFFICE BEING IN HARIDWAR, INDIA.
IT WAS FIRST FOUNDED AS A SMALL PHARMACY IN HARIDWAR AND THEN GRADUALLY
SWITCHED ON TO MANUFACTURING OF MEDICINE WHICH WERE ALL MADE FROM
ORGANIC NATURAL HERBS AN SPICES.
GRADUALLY, THEY EXPANDED THEIR RANGE FROM MEDICINES TO FOOD ITEMS,
BEVERAGES AND COSMETICS AND THEN TOWARDS FMCG.
ACQUIRED RUCHI SOYA LTD IN 2019 AS PART OF DISTRESS SALE AND THEREBY
ENLARGED ITS FOOD BUSINESS
PATANJALI AYURVEDA LTD. : INTRODUCTION
6. BABA RAMDEV CHOSE THE PATH OF “SWADESHI” AND “SAMAJ SEWA” , PRESENTED AN
INDIGENOUS OPTION TO BUYERS, GIVING TOUGH COMPETITION TO FMCG COMPANIES.
EMERGING FROM 150 – 200 DEDICATED PATANJALI OUTLETS TO ALMOST
10000 NOW AND IN ALL OTHER
LEADING GROCERY STORES INCLUDING BIG BAZAAR , HYPER CITY AND ALL
OTHER BIG AND SMALL RETAILERS
MAKING PRESENCE ALL ACROSS THE COUNTRY.
PATANJALI AYURVEDA LTD. : INTRODUCTION
7. CORE OBJECTIVES
VISION – Sustain market leadership
in health, wellness & ayurveda.
Done offering services & products
that enrich life of customers.
Mission – To create distinctive value
& deliver superior returns to
customers consistently.
Core values include – customer
delight, integrity & transparency,
leadership by example, pursuance by
example etc.
Strategic priorities include-
Customer connect
Prudent financial mgmt.
Sustainable business practices.
Balancing risks & opportunities
Cultivating a growth culture
8. Head of
Foods
Head Of
Ayurveda
Head Of
Cosmetics
VP -
Sales
VP -
Sales
VP - HR
VP -
HR
VP -
Sales
MD – Acharya
Balakrishna
VP -
HR
VP –
R&D
VP -
HR
VP –
R&D
ORGANISATION STRUCTURE
9. WORK SPECIALIZATION
CHAIN OF COMMAND - SHORT
CENTRALISED STRUCTURE
SPAN OF CONTROL – NOT VERY WIDE
FORMALIZATION: GUIDELINES BASED ON VISION
DEPARTMENTALIZATION – FUNCTIONAL AND PRODUCT BASED
KEY HIGHLIGHTS OF ORGANIZATIONAL STRUCTURE
10. Brand Ramdev
Connect to
masses
Patriotism &
Indian culture
tapped
Ayurveda &
Health
Hospital &
OPD services
Own
medicines &
discourage
allopathy
Yoga & Fitness Yog shivir
Promoting
Wellness
Maximise FMCG
Exclusive
stores
House of
Brands
MARKETING STRATEGY
12. NUTRITION &
SUPPLIMENTS
BADAM
PAK
CHYAWANPRASH
GHEE
HONEY
HEALTH DRINK
FRUIT JUICE
GROCERY
CANDY
GRAM FLOUR
CORN FLAKES
HERBAL TEA
MUSTARD OIL
RICE
SALT,
SPICES
MEDICINES
ASAVA
BHASMA
GUGGUL
PARPATI
SYRUP
VATI
PISHTA
CHURNA
HOME CARE
AGARBATTI
DISH WASH BAR
HERBAL GULAL
PERSONAL CARE
BODY LOTION
TOOTH BRUSH & PASTE
EYE CARE
FACE CREAM ,AGING
CREAM
HAIR OIL, SHAMPOO,
CONDITIONER
BOOKS & MEDIA
AUDIO CASSETTE
AUDIO CDS/MP3
ELECTRONIC ITEMS
DVDS & VCDS
BOOKS
HEALTH CARE
DIGESTIVE
HEALTH & WELLNESS
13. PRICING : PATANJALI PRODUCTS vs COMPETITORS
Product Name Qty Patanjali Price (INR) Competitors' Price (INR) Competitor
Cow Ghee 1 Ltr 450 710 Parsi Dairy
Saundarya Face Wash 60 gm 60 80 Peras Face Wash
Honey 500 gm 135 199 Dabur Honey
Kesh Kanti Shampoo 200 gm 110 159 Head & Shoulder
Kani Neem Soap 75 gm 15 24 Himalaya Neem Soap
Super Dish Wash Bar 175 gm 10 15 VIM Dish Wash Bar
Corn Flakes Mix 500 gm 145 182 Kellogg's Corn Flakes
Detergent Powder 250 gm 13 19 RIN Detergent Powder
Pineapple Juice 1 Ltr 85 99 Real Juice
Special Chayawanprash 500 gm 115 160 Dabur Chayawanprash
14. THE ANSOFF MATRIX, ALSO CALLED
THE PRODUCT/MARKET EXPANSION
GRID.
IT IS A TOOL USED BY FIRMS TO
ANALYZE AND PLAN THEIR STRATEGIES
FOR GROWTH.
THE MATRIX SHOWS FOUR
STRATEGIES THAT CAN BE USED TO
HELP A FIRM GROW AND ALSO
ANALYZES THE RISK ASSOCIATED WITH
EACH STRATEGY
PRICING : PATANJALI PRODUCTS vs COMPETITORS
15. MARKET PENETRATION
Patanjali has penetrated the Indian market with its
existing products like Ghee, Honey, aloe vera,
Badampak, etc are the great example of this.
More investment in R&D.
Loyalty schemes to gain more recognition among
existing markets.
PRODUCT DEVELOPMENT
May involve product modification or formulation of
completely different product.
Patanjali introduced Aloe vera with orange and added
fibers.
Extended its range in Amla, Mango Panna, Tulsi,
thandai etc.
MARKET DEVELOPMENT
Identification of new markets to increase sales and
growth of the company.
As FMCG company, Patanjali has to operate in
different rural and urban markets to increase consumer
base.
Started online services and distribution to super
markets, aggressive endorsement by sponsoring in
different events.
DIVERSIFICATION
Attracting new markets with completely new products
which also helps in mitigating the risk of loss and failure.
Patanjali adopt this strategy and diversified itself into
Cosmetic industry, healthy drinks, and chocolates.
18. Year Mar '23 Mar '22 Mar '21 Mar '20 Mar '19 Mar '18
Annual
Revenue
31,821.50 24,284.40 16,383 13,175.40 12,829.30 12,029.30
PBT 1,179 1,074.40 514.4 7,658 76.7 -6,010.20
PAT 886.4 806.3 680.8 7,672 76.7 -5,573.30
(In INR Crores)
PATANJALI FINANCIALS
21. OVERVIEW OF BUSINESS ETHICS
1 DEFINITION
BUSINESS ETHICS REFERS
TO MORAL GUIDELINES
AND PRINCIPLES THAT
GUIDE BEHAVIOR IN THE
WORLD OF BUSINESS. IT
INVOLVES FAIR PRACTICES,
TRANSPARENCY, AND
ACCOUNTABILITY.
2 IMPORTANCE
ETHICAL CONDUCT IS
CRUCIAL FOR BUILDING
TRUST AND CREDIBILITY
WITH STAKEHOLDERS,
INCLUDING CUSTOMERS,
EMPLOYEES, AND THE
COMMUNITY.
3 EXAMPLES
Examples include honest
advertising, fair labor
practices, and
environmental
responsibility.
22. CUSTOMER TRUST
ADHERENCE TO ETHICAL PRINCIPLES FOSTERS TRUST
AND LOYALTY WITH CUSTOMERS, WHICH IS CRUCIAL
FOR BRAND REPUTATION.
CULTURAL INFLUENCE
REFLECTS THE COMPANY'S COMMITMENT TO
TRADITIONAL INDIAN PRINCIPLES AND CULTURE,
RESONATING WITH THE TARGET MARKET.
IMPORTANCE OF BUSINESS ETHICS IN PATANJALI AYURVED
23. 1 MARKET REPUTATION
STRONG ETHICAL PRACTICES HAVE
CONTRIBUTED TO THE COMPANY'S
POSITIVE REPUTATION IN THE MARKET,
LEADING TO CUSTOMER LOYALTY.
2 Competitive Edge
ETHICAL CONDUCT SETS PATANJALI
APART FROM COMPETITORS AND
UNDERSCORES ITS COMMITMENT TO
SOCIAL RESPONSIBILITY.
IMPACT OF BUSINESS ETHICS ON PATANJALI AYURVED’S SUCCESS
27. INGREDIENT SOURCING
PATANJALI FOCUSES ON
SUSTAINABLE AND ETHICAL
SOURCING PRACTICES,
PARTICULARLY IN ITS HERBAL AND
NATURAL PRODUCTS.
WORKER WELFARE
THE COMPANY PUTS AN EMPHASIS
ON FAIR PAY, SAFE WORK
CONDITIONS, AND OPPORTUNITIES
FOR EMPLOYEE GROWTH AND
DEVELOPMENT.
CONSUMER EDUCATION
PATANJALI ENGAGES IN EDUCATING CONSUMERS ABOUT THE BENEFITS OF
AYURVEDA AND NATURAL PRODUCTS, PROMOTING INFORMED CHOICES.
ETHICAL PRACTICES FOLLOWED BY PATANJALI AYURVED
31. ESG Strategies
ENVIRONMENTAL KPIs SOCIAL KPIs GOVERNANCE KPIs
Renewable Energy Adoption Employee Welfare Ethical Business Practices
Sustainable Packaging Community Engagement Board’s Diversity and Independence
Water Conservation Responsible Sourcing Stakeholder Engagement
Biodiversity Preservation Consumer Awareness Risk Management
ESG STRATEGIES
32. Natural Capital Alternate
Energy
Water Consumed – 26,71,383 kl
Drip Irrigation in Palm Oil plqntations across
India – 63,816 ha
CO2 mitigated – 1,16,721 tCO2
Waste reused in FY 23 – 155 MT
Waste Recycled in FY 23 – 69,529 MT
35. TRAINING AND DEVELOPMENT PROGRAM
IN FY 23 – 4354
VIRTUAL TRAININGS IN FY 23 - 9
TOTAL TRAINING HOURS – 53,320
WORK RELATED FATALITIES IN FY 23 - 0
ANNUAL GROWTH IN EMPLOYEE COUNT –
50.25%
FEMALE EMPLOYEES – 134
FEMALE WORKERS - 70
HUMAN RESOURCE
43. CONTROVERSIES
LABOUR – SPIRITUAL SEVA, LOW SALARIES Rs 6000/- pm, TOUCH FEET OF DIRECTORS
OVER 100 CASES IN UTTARAKHAND, RAJASTHAN, BIHAR
UNTREATED EFFLUENT & WASTE DISPOSAL AT PLANTS
SEBI BANNED PROMOTERS FROM TRADING SHARES SINCE LESS THAN 25% IN MARKET
8000% INCR IN SHARE PRICES AFTER ACQUIRING RUCHI SOYA
FAILURE IN FOOD QUALITY TESTS (JUICES, HONEY, NOODLES NUTRACEUTICALS)
MADRAS HIGH COURT BANNED PRODUCTS
CONTROVERSIES
44. 100 LAKHS FINE BY SUPREME COURT FOR EACH INSTANCE OF FALSE CURE CLAIM
FORMER CEO RESIGNED BECAUSE OF POOR LABOUR TREATMENT & INADEQUATE COMPENSATION
LAND GRABBING IN ARAVALLI
PRODUCTS WITH FALSE CLAIMS & ATTRIBUTIONS – CORONIL, CURE OF AIDS, BIRTH OF MALE CHILD
BAL KRISHNA OPTED FOR ALLOPATHY, ADMITTED IN AIIMS FOR CARDIAC ISSUES
RAM BHARAT BOOKED FOR INSTIGATING MOB THAT KILLED ONE & INJURED FOUR IN PATANJALI PLANT
CONTROVERSIES
46. STRENGTHS
• PERCEPTION OF
NATURAL PRODUCTS
• INNOVATIVE USE OF
SPIRITUALITY
• ESTABLISHED SUPPLY
CHAIN
• DEDICATED FOLLOWING
• PATRIOTISM LINKED
• PRICE
COMPETITIVENESS
WEAKNESSES
• ESTABLISHED
COMPETITORS
• BETTER QUALITY OF
SUBSTITUTES
• LOW EXPORTS
• HIGH PRICE OF SOME
PRODUCTS
• MARKETING THROUGH
DEDICATED STORES ONLY
• PROMOTIONAL ACTIVITIES
OF NARROW FOCUS
• UNPROFESSIONAL
CORPORATE STRUCTURE
OPPORTUNITIES
• LARGE DOMESTIC MARKET
• UNTAPPED RURAL MARKET
• PREFERENCE FOR INDIAN
PRODUCTS
• FAVOURABLE POLITICAL
DISPENSATION
THREATS
• CONSUMER AWARENESS
• LEGAL CASES
• POLITICAL CHALLENGES
• CONTROVERSY CREATED
BY OTHER GROUPS
• CHEAPER SUBSTITUTES
48. Strategies for promoting business ethics in
Patanjali Ayurved
1 Educational Initiatives
Developing training programs to instill ethical principles throughout the organization.
2 Stakeholder Engagement
Involving key stakeholders in ethical decision-making processes to ensure
transparency.
3 Continuous Evaluation
Implementing systems for ongoing monitoring and assessment of ethical compliance.
49. FOCUS ON HOLISTIC ETHICAL BEHAVIOUR
AYURVEDA IS A SCIENCE : USE EXPERTISE
LEVERAGE CONNECT TO TARGET AUDIENCE TO PROMOTE YOGA & FITNESS
BRING IN PROFESSIONALS TO MANAGE COMPANY AFFAIRS
ENSURE FAIR REMUNERATION TO WORKERS
ENSURE QUALITY IN INGREDIENTS AND MFG PROCESS
PIVOT TO QUALITY IPROVEMENT THROUGH RESEARCH
PROMOTE INDIAN FOODS AND ITEMS
CUSTOMER HEALTH & WELLNESS IS PARAMOUNT; PRACTICE WHAT YOU PREACH
PRODUCTS & BRANDS ARE NOT BUILT OVERNIGHT. WINNING THE HEARTS & MINDS ACROSS GENERATIONS & GEOGRAPHIES ESSENTIAL FOR
SUSTAINABILITY
CONTROVERSIES