Patanjali Ayurveda outpaces rivals in ‘disrupted’ Indian market

By RJ Whitehead

- Last updated on GMT

Patanjali Ayurveda outpaces rivals in ‘disrupted’ Indian market
A guru-steered food and FMCG company has been singled out as the most disruptive force in India’s fast moving consumer goods market as it steers a path towards revenues worth over US$1bn by 2020.

Patanjali Ayurveda has expanded its product portfolio across a wide range of personal care and food lines, and witnessed 146% growth in the 2016 fiscal year with revenues of US$769m.

Put alongside its competitors, including ITC, Hindustan Unilever and Palmolive, which saw sub-double-digit growth over the same period, Patanjali has had a significant impact on the segment through its network of 15,000 exclusive retail units and presence in 3,000 retail chains, an authoritative paper by TechSci Research for Assocham revealed.

Patanjali Ayurveda, which is 94% owned by Acharya Bal Krishna, a close disciple of Baba Ramdev,“has turned out to be the most disruptive force in the Indian FMCG market​,” it said.

Initially the company focused on the development of Ayurvedic medicines, but as it has ramped up the manufacture of food items and cosmetics, it has also “significantly increased​” its market share. 

Many of its product launches have impacted share of other FMCG companies in that product category. Some of its flagship brands which have wrested the market share of its competitors include Dant Kranti, Atta noodles and Kesh Kranti​”, the paper said.

DS Rawat, secretary-general of Assocham, said the market had been “disrupted​” as it moves towards a greater demand for homegrown Ayurveda and fewer imported health goods.

This also reflects a kind of latent desire among the Indian consumers to adopt the products which are safe, healthy and free from side-effects,​” he added.

India’s FMCG market was estimated to be worth US$43bn in 2015, with 60% of sales concentrated in urban areas. As much as 91% of the retail trade in the sector is in the unorganised segment, though this is likely to become more organised over time. 

The paper said that India has also emerged as a strong regional export hub for the domestic and multinational companies that have been leveraging the country’s cost competitiveness.

With growing disposable incomes, middle- and upper-middle-class consumers in urban areas have shifted their purchasing trends from essential to premium products. The premium brands are manufacturing smaller packs or products and in response the firms have begun enhancing their top-end product portfolios,​” it added.

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1 comment

your figures on American Unorganised trade

Posted by S Badhe,

Your figures on the unorganised trade in the US are incorrect. If anything the US organised trade is at 90%+. Unless you are referring to something else..

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