Baba Ramdev has been the brain behind Patanjali...If all its products have been tested in accredited labs we should not worry about quality! An Indian brand taking on the MNC's!
[h=1]Herbal-ayurvedic category back in demand[/h]
[h=2]Patanjali's success shows there is money to be made from health-conscious consumers[/h]
Business Standard Editorial Comment | New Delhi January 27, 2016
The performance of the fast-moving consumer goods (FMCG) companies during the quarter ended December 2015 has remained depressed with no significant improvement in rural demand. But "Baba" Ramdev's Patanjali Ayurveda appears quite unperturbed by such tepid growth. The saffron-clad "spiritual guru" doesn't hold a single share in the company that started in 1997 as a small pharmacy, yet Patanjali depended entirely on his charisma to become India's fastest-growing consumer products brand. That charisma has acquired a special gleam, given a friendly government at the Centre. After all, Mr Ramdev was recently publicly acknowledged for his "good work" by Union Minister Nitin Gadkari, who invited him to start ayurvedic spas to give massages and ayurvedic treatment at some of the 1,300 islands the government is opening up for tourism.
Undeniably, however, Patanjali - which makes a host of products from toiletries to instant foods and health supplements - has created waves. Its consumers are rapidly growing across income categories. The marketing savvy of the company was evident when it launched its instant noodles brand at the height of Nestle's Maggi crisis with the tagline "jhat pat pakao, befikr khao" (cook quickly, eat without worry) and plugged its product as lead and monosodium glutamate-free. It has formidable distribution strength: 3,000 health centres across the country, a huge chain of independent grocery shops, and a tie-up with the Future Group. Unsurprisingly, rival consumer goods companies - which were earlier dismissive - are now unnerved by a company which is striking at the heart of their business and is estimated to have crossed the Rs 2,000-crore turnover mark. It is looking to grow that two-and-a-half times in 2015-16.
That's just one side of the story. Patanjali's success also shows that there is money to be made from health-conscious consumers by appealing to India's roots. The natural-herbal-ayurvedic category has great resonance in a country where many see merit in traditional foods and practices. Brokerage IIFL argues in a note that "what makes Patanjali a credible threat is that it does not try to beat other FMCG companies at their game; it changes the game for them". For example, Patanjali sells cornflakes and muesli in a category led by Kellogg's; an anti-wrinkle cream where P&G's Olay reigns supreme; and one of its top sellers is Dant Kanti, which is a potential rival to Hindustan Unilever's (HUL's) Pepsodent. It is interesting to see how a host of FMCG companies are scrambling to push products in the categories where Patanjali is growing fast. For example, companies such as Dabur, Emami and Himalaya have talked in recent times about buttressing their portfolios in this category. Godrej Consumer has launched a neem-based mosquito coil; a hair colour that has coconut oil; and launched new variants under Godrej No 1, its naturals platform in soaps. HUL, India's biggest FMCG company, has resurrected its herbal brand, Ayush, and is planning to increase its 'natural' offerings, moving into newer categories such as health foods, oral care, lip care and so on. The biggest example is its decision to buy Indulekha, a brand with strong credentials around Ayurveda-a far cry from 2006, when it sold its coconut hair oil brand, Nihar
http://www.business-standard.com/ar...c-category-back-in-demand-116012701149_1.html
[h=1]Herbal-ayurvedic category back in demand[/h]
[h=2]Patanjali's success shows there is money to be made from health-conscious consumers[/h]
Business Standard Editorial Comment | New Delhi January 27, 2016
The performance of the fast-moving consumer goods (FMCG) companies during the quarter ended December 2015 has remained depressed with no significant improvement in rural demand. But "Baba" Ramdev's Patanjali Ayurveda appears quite unperturbed by such tepid growth. The saffron-clad "spiritual guru" doesn't hold a single share in the company that started in 1997 as a small pharmacy, yet Patanjali depended entirely on his charisma to become India's fastest-growing consumer products brand. That charisma has acquired a special gleam, given a friendly government at the Centre. After all, Mr Ramdev was recently publicly acknowledged for his "good work" by Union Minister Nitin Gadkari, who invited him to start ayurvedic spas to give massages and ayurvedic treatment at some of the 1,300 islands the government is opening up for tourism.
Undeniably, however, Patanjali - which makes a host of products from toiletries to instant foods and health supplements - has created waves. Its consumers are rapidly growing across income categories. The marketing savvy of the company was evident when it launched its instant noodles brand at the height of Nestle's Maggi crisis with the tagline "jhat pat pakao, befikr khao" (cook quickly, eat without worry) and plugged its product as lead and monosodium glutamate-free. It has formidable distribution strength: 3,000 health centres across the country, a huge chain of independent grocery shops, and a tie-up with the Future Group. Unsurprisingly, rival consumer goods companies - which were earlier dismissive - are now unnerved by a company which is striking at the heart of their business and is estimated to have crossed the Rs 2,000-crore turnover mark. It is looking to grow that two-and-a-half times in 2015-16.
That's just one side of the story. Patanjali's success also shows that there is money to be made from health-conscious consumers by appealing to India's roots. The natural-herbal-ayurvedic category has great resonance in a country where many see merit in traditional foods and practices. Brokerage IIFL argues in a note that "what makes Patanjali a credible threat is that it does not try to beat other FMCG companies at their game; it changes the game for them". For example, Patanjali sells cornflakes and muesli in a category led by Kellogg's; an anti-wrinkle cream where P&G's Olay reigns supreme; and one of its top sellers is Dant Kanti, which is a potential rival to Hindustan Unilever's (HUL's) Pepsodent. It is interesting to see how a host of FMCG companies are scrambling to push products in the categories where Patanjali is growing fast. For example, companies such as Dabur, Emami and Himalaya have talked in recent times about buttressing their portfolios in this category. Godrej Consumer has launched a neem-based mosquito coil; a hair colour that has coconut oil; and launched new variants under Godrej No 1, its naturals platform in soaps. HUL, India's biggest FMCG company, has resurrected its herbal brand, Ayush, and is planning to increase its 'natural' offerings, moving into newer categories such as health foods, oral care, lip care and so on. The biggest example is its decision to buy Indulekha, a brand with strong credentials around Ayurveda-a far cry from 2006, when it sold its coconut hair oil brand, Nihar
http://www.business-standard.com/ar...c-category-back-in-demand-116012701149_1.html
