Blog: How Baba Ramdev steered Patanjali to be Rs 2,500 crore business

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How Baba Ramdev steered Patanjali to be Rs 2,500 crore business

His Ayurveda company has given the MNCs a run for their money. Patanjali is set to notch Rs 5,000 crore revenues by 2017.
How Baba Ramdev steered Patanjali to be Rs 2,500 crore business

It’s a tornado which has hit the Indian FMCG market. Baba Ramdev’s Patanjali is giving the MNCs a run for their money with ‘Make in India’ products – be it oral care, body care, and even food products. Patanjali Ayurved has garnered a 4.5% market share in the toothpaste segment, a report by Kotak Institutional Equities said. In comparison, in the last one year, Colgate Palmolive, the sector leader, has lost its market share by 60 basis points (100 basis points = 1 percentage point) to 57.3%. 

Reliance Retail was the first modern retail chain to sell Patanjali products, when it created dedicated spaces almost a year back for the brand. Last October, Baba Ramdev's Patanjali Ayurved entered into an exclusive partnership with Future Group to make its entire range of products available in Big Bazaar outlets across the country.  Kishore Biyani is hopeful that Future Group stores will do a business of Rs 1,000 crore in 20 months with Patanjali, which is considered the fastest-growing consumer products company in the country and is already bigger than rivals such as Emami and Jyothi Labs. 

Ramdev will invest Rs 1,000 crore this year on the company’s expansion. The focus will be on e-commerce and exports. The Haridwar-based firm is planning to set up manufacturing plants in South India. Patanjali, which has 15,000 stores across the country, plans to add more products in segments and has built a network of 3,000 health centres across the country which also sell its products.

Patanjali Ayurveda Ltd (PAL) was set up as a small pharmacy by Baba Ramdev and his collaborator, Ayurveda expert Acharya Balkrishna, in 1997. Balakrishna owns 92% stake and the rest is held by an expat Indian couple. Baba Ramdev holds no stake in the company. "Designation-wise, he is no one in Patanjali — neither chairman, nor a shareholder, nor a director. But he is everything,” Balkrishna had said.

 

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Topics: Watercooler, Leadership

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