Patanjali: Capturing Indian Market
Authors: Anita Kshetri, Sunaina Kuknor and Gita Madhuri
Journal: Case Centre
Publication date: 2016
Publisher: The Case Centre
URL: click here
In 2006, when the big giants in the Indian FMCG sector were far from any new competition, an Ayurveda focused company called 'Patanjali Ayurved Limited (PAL)' established by Acharya Balkrishna along with Baba Ramdev came into the market. The company focused on products like Ayurvedic medicines, preventive medications and fast moving consumer goods. The objective of establishing this firm was to take help of science and technology in accordance with the ancient wisdom in developing the products. The company remained focused on natural and environmental raw materials to bring healthy and pure product range in the market. Many rival companies and established players of FMCG remained unmindful of the changes happening in the field of Ayurveda. They were focusing upon the economic growth and people’s purchasing power, but then remained ignorant about the fact of competitive pricing and health consciousness in the society. A no-option company became the first option for many existing customers and did influence the potential customers. The growth of Patanjali Ayurved Limited lead to steep decline in the profitability of many other companies operating in the same field. Since 2012, Patanjali Ayurved Limited (PAL) has achieved tremendous growth leading to stiff competition for its various rivals to respond. Baba Ramdev and Acharya Balkrishna are strategizing further about retaining and growing their position in the market. This strategy will foresee challenges for the company to establish PAL in the competitive and complex market condition.