According to a media report, the Centre is seeking an explanation from Patanjali Ayurved Ltd on a number of financial transactions that federal economic intelligence services have identified as suspicious.
The company has received a notification from the Ministry of Corporate Affairs, which is also looking into possible fund diversion and corporate governance violations.
Yoga guru Ramdev’s company’s flagged transactions were judged “abnormal and dubious”; however, exact numbers have not been made public because the probe is still in its early stages. Patanjali has around two months to reply to the notice from the ministry.
Patanjali Going Through a Challenging Time
Patanjali Ayurved and its affiliates are facing an increasing number of legal and regulatory issues as a result of this most recent investigation. A division of the business was given show-cause notifications last year for alleged tax infractions and false refund claims.
The company that sells traditional medicines also came under heavy fire for advertising false items that promised to cure serious illnesses like cancer. The Supreme Court cited violations of the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954, and ordered the corporation to stop marketing its products as remedies for different illnesses.
The Kerala Drugs Control Department stated in February 2025 that Ramdev and Patanjali were the subject of 26 pending cases under the same advertisement legislation in different state courts.
A number of newspapers are also being sued for publishing the contentious ads. Although Patanjali Ayurved is still privately held, Patanjali Foods Ltd., a listed business, has been impacted. So far this month, the stock has fallen by almost 10%.
Patanjali’s Financial Outlook of 2024
According to the company’s RoC filing, Patanjali Ayurved’s overall revenue increased by 23.15% to INR 9,335.32 crore in 2023–2024 thanks to other revenue from Patanjali Foods (formerly known as Ruchi Soya) and other group companies.
Financial data obtained through the business intelligence platform Tofler shows that Patanjali Ayurved’s other income in FY24 was INR 2,875.29 crore, compared to INR 46.18 crore in the same period last year.
For the fiscal year that concluded on March 31, 2024, its operating revenue—which is primarily derived from net sales—dropped 14.25% to INR 6,460.03 crore.
The July 1, 2022, transfer of Patanjali Ayurved’s food business—which includes biscuits, ghee, cereals, and nutraceuticals—to Patanjali Foods had an effect on revenue. In FY24, their total profit increased fivefold to INR 2,901.10 crore.
For the fiscal year that concluded on March 31, 2023, Patanjali Ayurved reported a total profit of INR 578.44 crore on revenue of INR 7,533.88 crore. In FY23, Patanjali’s Ayurved, a non-listed company, earned INR 7,580.06 crore in total revenue, including other revenue.
In FY24, Patanjali Ayurved’s advertising and promotional costs increased by 9.28% to INR 422.33 crore. The Haridwar-based company Group stated earlier this year in July that it will be selling its whole home and personal care division from Patanjali Ayurved to Patanjali Food for INR 1,100 crore.
Patanjali is one of the few brands that make up the very backbone of the Indian consumerist identity. With a bevy of marketing tactics to push its plethora of products, the company has become one of the icons of the Indian economy.
The privately-owned Indian FMCG Patanjali has a vast audience in India, no matter how young, there is nobody who doesn’t know the brand’s name. Let us take a look at the marketing strategy of Patanjali and how it utilized people’s beliefs as a marketing tool.
The 1990s in India saw the floodgates open and the global economy ushered in a new era of consumerism. As international companies and MNCs trickled in and became a deluge, the needs of Indians altered slowly but definitively. The new millennium was flush with international goods, but the people began to clamour for more homemade production. The swadeshi effect gradually spread like wildfire, and companies began to take advantage.
Onto this scene came Patanjali, an Indian company with a vision that stretched beyond present profit quarters and into the future. Indian yogi Baba Ramdev and Acharya Balkrishna came together in 2006 to create a health and awareness brand that focused on the present needs of the people. The brand was created and heavily relied on the image of using ancient Indian Ayurved ingredients to detoxify both mind and body.
The main aim of Patanjali is to establish and nurture a society that promotes health first and foremost. Therefore, the brand encourages not only its health and lifestyle goods but also ancient Indian practices like yoga. It aims to create life-changing goods that will help prevent as well as cure acute ailments through ingredients that are 100% natural.
Patanjali relies not just on the veracity of products but also on Baba Ramdev’s claims of technological imports to get the most from Ayurvedic aid and literature. The brand and its founders use various forms of marketing to promote its products. Many of which have ensured that the company continues to flourish almost 16 years after its conception. Through meticulous brand promotion and successful trade systems, Patanjali seems to be on track to becoming a face brand of India itself.
As of 2022, Acharya Balkrishna is the owner of the company with 94% shares under his control. The rest are divided among individual shareholders. As the chairperson, managing director, and chief executive officer, Balakrishna is also a key operator. Baba Ramdev is the face and brand ambassador of Patanjali, while his younger brother Ram Bharat is the de facto CEO. the total income for the financial year 2019 for Patanjali was ₹4,345 crores (US$590 million). With a net income of ₹590 crores (US$80 million) in the fiscal year of 2021, Patanjali has generated a revenue of ₹30,000 crores (US$4.02 billion) in the same year.
The varied products make up for than 900 items and the organization sells them grouped under the following goods brackets:
Ayurvedic medicine
Consumer goods
Healthcare
Personal care
Cosmetics
Cleaning agents
Beverages
Fashion
Foods items
With headquarters situated in Haridwar, Uttarakhand, India, Patanjali serves customers mainly in the Indian subcontinent and the Middle East. The brand has over 2,00,000 employees and controls the following subsidiaries:
When it comes to marketing products, Patanjali uses its brand platform to spread awareness. The question that naturally arises is: how does Patanjali have such a devoted brand following? The answer lies in how popular brands of medicines used for treatments ply in India. The developing country attempts to offer affordable medicines to the socially backward and poverty-ridden majority. However, the elitist privatization of healthcare and extreme costs of life-saving medication does not allow people below the poverty line to access treatments.
When such a vast avenue for health is closed off, alternative medicines become popular. The most crucial factor that boosts such alternatives is affordability. If alternative forms of medicine are marketed as cheap, over-the-counter, and somewhat trustworthy, people will gravitate towards them. This is where Patanjali uses its trump card to overpower allopathic medication and treatment. It promotes very affordable models of healthcare and ensures that the products are easy to acquire for anyone. Most Indians, no matter their literacy levels, are familiar with Ayurvedic medicines. Despite the lack of concrete results in studies that attempt to prove the adequacy of Ayurveda, the familiarity that people associate with this alternative cure is enough to boost sales.
Baba Ramdev, through his platform, has helped create an image of the brand that is acceptable and popular, especially for the socially and financially challenged. His association with the brand has helped increase its visibility. Ramdev liberally promotes the Patanjali name in his innumerable yoga camps and shows. Moreover, consumer psychology maintains that the more people get to know the faces behind a company, the more they are likely to remain loyal. Ramdev’s direct communication and interaction with his buyers is a major factor in the brand’s successful image.
The consumer goods company came just behind the chocolate-making giant Cadbury and skincare line Glow & Lovely (formerly Fair & Lovely) as the most advertised brands on television in India in 2016. Moreover, the expenditure attributed to advertising the products is very low. The brand prefers quantity over quality – its innumerable advertisements, promoting similar products, are testament.
Costs are also low because of Ramdev’s promotions in yoga camps and reality shows like India’s Best Dramebaaz(sponsored by Patanjali). The camps are excellent sources of high consumer populations. Selling the brand is a matter of simplicity and convenience through Ramdev’s oratorship. Marketing strategist of Patanjali has made their way into the digital space through the internet and eCommerce opportunities.
Key Marketing Strategies of Patanjali
Patanjali Ayurved Products
The process of marketing a brand is as crucial as the brand itself, if not more. Without the right sort of marketing, introducing a brand and its products becomes next to impossible. Consumers will not be interested in a product without some brand recognition. Sometimes, the brand exceeds the product (Philips, Godrej, Tata, etc.), and this is the result of excellent marketing strategies.
The main reason why Patanjali continues to flourish in a market despite millions of obstacles is because of its subtly sophisticated marketing tactics. The marketing team behind the brand is why Patanjali is so widely accepted, especially among certain sections of society. The brand continues to come out on top, despite its weaknesses, scandals, threats, etc., again and again purely because of the way the brand markets itself. Let us take a look at why mainstream society is attracted to Patanjali and what Patanjali does to retain and expand its consumer base.
The entire foundation of the brand is heavily reliant on the image of a Pre-Lapsarian India, so to speak. The picture is complete with ancient monuments and kings and rulers akin to the image of the gods. The allusion is to the fact that that time, throughout the various eras, was a pure one where health, hygiene, and progress of society were the aim of every individual. Therefore, the goal of the founders is to help the people let go of the burden of the pollution of the mind, body, and soul that the current kalyug (Dark Age) has imposed.
Patanjali offers to transform and improve people’s health using the natural medicines people used in these times. It uses ayurvedic medicines to treat an extensive list of health problems. The treatments are often marketed for a variety of ailments. The brand has come under fire many times in the past for using incorrect treatments to cure illnesses like claiming yoga can cure HIV/AIDs. However, its marketing department continues to walk in the same direction.
Baba Ramdev’s expansive yoga exercises are also a part of the Patanjali regiment. The televised events often pair up with the company. Ramdev expounds on the importance of Ayurveda and yoga to relieve the body from diseases, both as a precautionary and a curative solution. Ramdev also claims that yoga is better medicine than any other therapy or prescription for mental health disorders, often demonizing allopathic or psychiatric cures to his followers. These claims remain unsubstantiated. However, the benefits of yoga are what also keeps Ramdev so popular. The majority of his fanbase continues to follow the regimens he prescribes.
How Patanjali Used Common Beliefs as a Marketing Tool
One of the most significant means of spreading awareness for the Patanjali brand is a quiet barter that one of the cofounders has undertaken. While the barter system may seem outdated, its usage falls right on track with Patanjali’s principles. The bartering is not a part of the product sale nor is it a branding venture.
On the contrary, it is a marketing scheme that helps propagate awareness of Patanjali, skewing people’s perceptions and opinions of the brand in its favor. The founders, despite their demand to go back in time to access a more “pure” and “perfect” time in Hindu history, are well aware of modern advantages like great branding. There is no doubt that a company must strive to achieve originality to survive and get ahead of the cut-throat competition. Patanjali’s founders take advantage of certain measures to ensure that the brand stays afloat.
Baba Ramdev, the face of Patanjali, is well aware of the power of the platform he has tirelessly created over the past 20 odd years or so. His persona as a man with a fitness plan is well known. You will not find many places that have not witnessed the antics of Ramdev’s yogic postures that claim to cure all known ailments. His brand of yoga enmeshes Patanjali’s principles seamlessly, thus making it difficult for consumers to extricate the man from the brand. This, however, is what fuels Ramdev’s agenda.
More than two decades of yoga performances have nurtured multiple associations, contacts, and deals based on goodwill. Using these means, Patanjali, by extension Baba Ramdev, has created a social platform to spread awareness of the brand. A constant influx of TV commercials, lurid advertisements, newspaper graphics, billboards, various magazines, social media handles, etc. are the weapons Ramdev uses to bring recognition to Patanjali’s products.
These tools are cunningly crafted to foster and spread the sense of the brand and its offerings. The goal of Patanjali is to utilize all digital, print, and other platforms available to spread recognition and induce loyalty to the brand by ushering in a sense of familiarity. Patanjali aims to secure the quintessential family demographic. Therefore, it heavily relies on television advertisements over the limited platforms of Google and Facebook ads.
In exchange for his presence and significant influence among a major demographic in India, Baba Ramdev barters for a wider scope of audience. The type of people who continue to hold on to their television sets in an age of streaming is usually above the age of 30. They are also usually in a more traditional family setting. These are the two targets of Patanjali’s demographics, so the barter system works out well in terms of promotions and brand recognition.
Using human psychology to push for brand recognition is a humongous part of the very identity of Patanjali. It uses people’s beliefs in old Indian ways of treatment to produce goods. With just the right marketing and offers, Patanjali has become a force to be reckoned with, despite its flaws. The co-founders of the company certainly have a long way to go. They must give up their propensity for spreading misinformation and have room for change. Their regressive attitudes can certainly create obstacles. However, as long as Ramdev and the company can hold on to their relevancy, Patanjali will go on.
FAQs
When was Patanjali Ayurved founded?
Patanjali Ayurved was founded in January 2006.
Who is the owner of Patanjali Ayurved?
Acharya Balkrishna is the owner of the company with 94% shares under his control.
Who is the CEO of Patanjali Ayurved?
Baba Ramdev is the face and brand ambassador of Patanjali, while his younger brother Ram Bharat is the de facto CEO.
What are some of the subsidiaries of Patanjali Ayurved?
Ruchi Soya, Advance Navigation and Solar Technologies Pvt. Ltd., and Herboved Inc are the subsidiaries of Patanjali Ayurved.
Patanjali = Baba Ramdev + Ayurveda + Organic + Healthy + Desi + People’s Trust + Quality Product. The combination of all makes Patanjali a dynamic business model in a country like India. Speaking of this, the way Patanjali manifested itself in the Indian market reflects its brilliant marketing strategy and brand positioning. Though Patanjali has a wide range of products, it gets sold easily because of the brainchild behind this, i.e. Baba Ramdev, primarily known for his popularizing Yoga and Ayurveda in India.
Patanjali – Company Highlights
Company Name
Patanjali Ayurved
Headquarters
Haridwar, Uttarakhand, India
Founders
Baba Ramdev & Acharya Balkrishna
Sector
Consumer goods & Healthcare
Founded
2006
Parent Company
Patanjali Ayurved Limited
Website
patanjaliayurved.org
Patanjali Ayurved Limited was established in 2006 with the thought of rural and urban development. The company is not merely an organization but a thought of creating a healthy society through Yoga and Ayurveda.
Patanjali Ayurved, (commonly known as Patanjali), is an Indian fast-moving consumer goods (FMCG) company based in Haridwar, India. It was founded by Baba Ramdev and Acharya Balkrishna in 2006. Its registered office is located in Delhi, with manufacturing units and headquarters in the industrial area of Haridwar. The company manufactures cosmetics, ayurvedic medicine, and food products.
Patanjali fabricates mineral and natural items. It also has manufacturing units in Nepal under the trademark “Nepal Gramudhyog” and imports a greater part of herbs in India from the Himalayas of Nepal.
In 1995, Baba Ramdev was a little-known yoga teacher in Haridwar when his close associate, Acharya Balkrishna, and he set up Divya Pharmacy – under the aegis of Ramdev’s guru, Swami Shankar Dev’s, ashram – to make Ayurvedic and herbal medicines. The medicines proved so popular that Ramdev and Balkrishna sought to diversify. But that proved difficult since Divya Pharmacy was registered under a trust.
Meanwhile, Baba Ramdev started gaining popularity which helped him to receive funds from the likes of NRIs Sarwan and Sunita Poddar, as well as locals such as Govind Agarwal – which in turn helped to get bank loans. This led to the incorporation of Patanjali Ayurved as a private company in 2006, with the purpose to bring the Ayurved in the form of the various product range, particularly in healthcare, hair care, dental care, toiletries, food and more – at breathtaking speed.
The initial days were quite difficult for them. They hardly had money to pay for the registration of Divya Pharmacy. For the first three years, till 1998, they distributed the medicines free. From buying the raw materials to grinding and mixing, everything is done by themselves as they cannot employ staff because of the lack of money.
It is noteworthy for a brand to be not the same as its rivals, and Patanjali quickly developed its own identity. Patanjali’s mantra of low costs goods and ‘swadeshi’ are broadly viewed as the principal purposes for its prosperity.
How did Baba Ramdev do it? The man has astutely related Patanjali with Ayurveda, which pulled in a huge group of spectators. He has brought Ayurveda into the market by matching it with the need of the consumers, particularly, by developing a wide range of products, thus enhancing the brand recall value.
He has picked up the trust of clients not just by demonstrating the products to them but also by using them himself. However, all of the organization’s procedures to verify the quality and amount of the items are strictly followed.
Patanjali Ayurved bids broadly by anticipating a picture of regular and unadulterated items. Baba Ramdev, its image diplomat, is additionally an open figure and well-being advertiser whose mass intrigue has ascended in recent years.
Patanjali – Founders
Baba Ramdev | Founder | Patanjali
In 1995, Balkrishna and Baba Ramdev founded Divya Yoga Mandir Trust in Haridwar, and in 2006, they founded Patanjali Ayurved a fast-moving consumer goods (FMCG) company involved in the manufacturing and trading of FMCG, herbal, cosmetics and ayurvedic products.
Swami Ramdev (born Ram Kisan Yadav in 1965), also known as Baba Ramdev, is an Indian yoga teacher and businessman, primarily known for his popularising Yoga and Ayurveda in India.
While Ramdev does not hold a stake in Patanjali Ayurved, he is the face of the firm and endorses its products to his followers across his yoga camps and television programs. Balkrishna owns 94% of the company and serves as its managing director. He is a close aide of Baba Ramdev.
Archarya Balkrishna | Founder | Patanjali
Balkrishna claims 98.6% of Patanjali Ayurved, and as of March 2018, it has total assets of ₹43,932 crores ($6.1 billion). Acharya Balkrishna is India’s Third youngest Billionaire with US$2.3 billion wealth as per the Forbes list of India’s 100 Richest People (May 2021).
Patanjali – Name, Logo & Tagline
Patanjali Ayurved Logo
The word “Patanjali” is a compound name from”patta” (meaning falling, flying) and “añj” (honour, celebrate, beautiful) or “añjali” (reverence, joining palms of the hand). The meaning of Patanjali is ‘Famous Yoga Philosopher‘ or ‘The authorof Yoga sutras‘.
The tagline of Patanjali is “Prakriti ka Aashirwad” which signifies that it uses Ayurveda (something that is perceived as a healthcare approach) and organic and natural ingredients to create a wide range of products, thus beautifully depicting an illusion in the mind of the customer that the product they’re using is really a nature’s blessing.
Patanjali – Vision and Mission
VISION
Keeping Nationalism, Ayurved and yoga as their pillars, Patanjali is committed to creating a healthier society and country by bringing the blessings of nature into the lives of people in the form of Ayurveda, a healthcare approach that is religious and spiritual. Having said that, Patanjali is all set to create a history in the Indian FMCG sector.
MISSION
Ayurveda has its foundation laid in ancient times as a healthcare approach but people have been neglecting it. So, there when Patanjali came into the picture to make India an ideal place for the growth and development of Ayurveda and a prototype for the rest of the world by upbringing awareness among people.
Patanjali – How Did It Achieve Success?
How Patanjali Achieved Success
Patanjali is the biggest Swadeshi FMCG brand. There is a great deal of information one can gain from Patanjali’s plan of action.
Baba Ramdev made an unpredictable plan of action for selling ayurvedic items. He never introduced his products as ayurvedic medications in the market, he propelled them as FMCG products.
Patanjali Ayurved is not entirely different from other FMCG organizations but it has a strategy similar to them as the products are offered to clients at an edge to procure a benefit.
Here are the factors which helped Patanjali to achieve success.
Pricing of Products
Moderate estimating of Patanjali items is one reason for its solid infiltration into the Indian market. As Baba Ramdev stated, the motivation behind Patanjali is Upkar and not Vyapar. Patanjali aims to give great quality items at low costs. How is it able to sell items at lower prices when compared to its rivals?
The organization sources items legitimately from ranchers and removes middlemen from the picture. This allows Patanjali to reduce crude material acquirement costs.
Patanjali appreciates a duty excluded status which is smack on the essence of other FMCG organizations.
Patanjali acquired terrains at a much-limited rate.
Patanjali doesn’t contract MBAs for selling their item, it employs a lesser number of experts. The organization has faith in assembling the items which the customers may purchase without the need for additional push to sell the item. There is nobody in that organization who is paid crores in salary.
The edge of merchants and retailers is less in Patanjali items when contrasted with other FMCG items.
Swadeshi Factor
The advancement system of Patanjali is entrancing with the “Make In India” campaign to gain more attention from the customers. Baba Ramdev’s main motive is to replace MNCs. They promote their products by saying that it doesn’t contain unsafe synthetic compounds and only natural pith. “Also by purchasing our items, you are guaranteeing the cash you spend remains in India.” The Swadeshi factor has proved to be a profitable strategy.
Baba Ramdev Buzzing Personality
Patanjali doesn’t rely on entertainers or sportsmen to promote its catalogue. Baba Ramdev is a steadying force. He has amassed an enormous group of devotees over 20 years through diligent work around yoga and Ayurveda. This saves the Indian FMCG giant a lot of investment when it comes to promotion and publicity.
A large number of individuals, from India as well as abroad, follow this other-worldly master. Baba accepted this as an open door and propelled a different scope of items under the brand name ‘Patanjali’.
Branded House Strategy
In this technique, different items are propelled and advanced under one brand. For instance – Apple has different items like Mac, iPad, iPhone, and more. Even though each one of them is unique and performs various capacities, collectively they are seen as Apple items.
Similarly, Patanjali advances all of its items under one brand. This additionally encourages lower costs in showcasing and publicizing as it doesn’t need to advance every item. Patanjali pushes for the image name “Patanjali.”
Distribution & Supply Strategy
Distribution And Supply Chain Of Patanjali
Patanjali Ayurved Ltd. built its one-of-a-kind retail organization. It began selling products through its own channels of super distributors, distributors, Chikitsalayas (franchise dispensaries), and Arogya Kendras.
Chikitsalaya – Pharmacies where specialists analyzed patients for nothing and suggested purchasing drugs from stores nearby. This is a unique system no other organization thought of.
Patanjali Arogya Kendras, a well-being and health focus centre.
Non-drug outlets are called Swadeshi Kendras. Additionally, the organization has numerous restrictive outlets across India. Patanjali items can also be purchased online.
Promotion Strategy
Marketing Mix Model Of Patanjali Ayurved
Patanjali uses a marketing mix model strategy to promote its brand or product in the market. The 4Ps make up a typical marketing mix – Price, Product, Promotion and Place.
Price: Patanjali uses a value-based pricing strategy primarily based on a consumer’s perceived value of a product or service that aligns with its competitors.
Product: It has a wide range of all existing and herbal products for different diseases.
Segmentation: Patanjali divides the market on the basis of age, lifestyle, personality, class, gender, etc. depending upon the people looking for healthy FMCG products.
Targeting: Patanjali offers products for all aged people but it targets mainly middle and upper-middle-class families who prefer ayurvedic products.
Positioning: Patanjali positioned itself as a healthier and safer product in the FMCG category that treats diseases with zero side effects.
Authentic Selling Strategy
Strategies Of Patanjali Ayurved
Patanjali uses an authentic selling strategy/authentic marketing to communicate openly, honestly and genuinely with customers. Baba Ramdev promotes the product in his yog shivir, youtube channels and other media platforms.
Patanjali – SWOT Analysis
The SWOT analysis of Pantajali Ayurved is mentioned below:
SWOT Analysis | Patanjali Ayurved Limited
Strengths
Offers 100% natural products with few side effects.
The brand image of the trust.
Extensive marketing has helped Patanjali to consider socially responsible for the health of the society, thus pulling people into accepting its products as a healthier and safer option.
Baba Ramdev’s buzzing personality helped in the quick sale of the products.
Excellent word-of-mouth marketing has helped the brand grow.
Established a successful distribution network in urban areas.
Weaknesses
Low export levels.
Diversification to other products raised quality issues.
No distribution network in rural areas.
Less expenditure on marketing and promotional activities.
Opportunities
Patanjali can tap the overseas and rural market as people are becoming more health-conscious.
Can enter more segments in personal hygiene, FMCG, etc.
Can diversify in different sectors like clothing, education, restaurants, etc.
Can bring change in the trend of becoming more health-conscious and using more organic products.
Threats
Political Interferences.
Big players can overcome new competition from Patanjali with their existing model.
Patanjali has a wide range of quality products – Natural Food Products, Natural Health Care, Natural Personal Care, Ayurvedic Medicines, Herbal Home Care & Patanjali Publication with 50000000+ consumer reach, 300000+ stores reach, 1000+ products and 5000+ Patanjali stores.
Patanjali Food and Herbal Park at Haridwar is the primary creation office of Patanjali Ayurved. The organization has a creation limit of ₹35,000 crores ($5.1 billion) and is growing to a limit of ₹60,000 crores through its new generation units at a few spots, including Noida, Nagpur, and Indore.
The organization intends to set up further units in India and Nepal. In 2016, the Patanjali Food and Herbal Park were given a full-time security front of 35 outfitted Central Industrial Security Force (CISF) commandos. The recreation centre will be the eighth private establishment in India to be watched by CISF paramilitary forces. Baba Ramdev is himself a “Z” class protectee of focal paramilitary forces.
Patanjali Ayurved produces items in the class of individual consideration and food. The organization makes more than 2,500 items, including 45 sorts of corrective items and 30 kinds of sustenance items.
As indicated by Patanjali, all the items fabricated by Patanjali are produced using Ayurveda and characteristic components. Patanjali has additionally propelled magnificence and infant products.
Patanjali Ayurvedic producing division has more than 300 drugs for treating a wide scope of sicknesses and body conditions, from normal cold to ceaseless paralysis. Patanjali propelled Atta noodles on 15 November 2015. The organization is accounted for fabricating conventional garments like Kurta, Pyjama and jeans.
On 5th November 2016, Patanjali declared that it will set up another assembling plant Patanjali Herbal and Mega Food Park in Balipara (Assam) by contributing ₹1,200 crores ($170 million). It would have an assembling limit of 10 lakh products every year. The new plant will be the biggest office of Patanjali in India and is operational at the moment. Patanjali as of now has around 50 assembling units in India.
Patanjali – Why Did It Saw Downfall?
Patanjali Ayurved, being one of the leading FMCG brands in India, had seen a downfall in its sales in 2017. Patanjali has always been the consumer’s favourite due to its affordability, use of natural & organic ingredients and Swadeshi factor.
Following are the reasons that have slowed down the growth of Patanjali in 2018:-
Lack of Innovation: Without innovation, there is not anything new and without anything new, there is no progress especially when everything around you is innovating. Since the introduction of the goods and services tax (GST) hit its operations in 2017, Patanjali has not managed to recover from the low growth cycle. As a result, its top line declined 10% in FY18. The decline was primarily because of its inability to adapt to the GST regime and develop infrastructure and supply chain.
Lack of Advertising: The decrease in advertising slowed down the growth of Patanjali. Patanjali didn’t focus more on advertising as a result faced a decline in its sales because people were not aware of its natural and organic products.
Ignoring Competition: One of the major reasons why Patanjali faced decline is ignoring its competitors. It’s very important for a company to keep an eye on its competitors. Patanjali has created many rivalries along with success and started rolling out their own variant of natural and organic products.
Poor Management: After gaining huge popularity among consumers, Patanjali diversified itself among various sectors besides FMCG. It became difficult to manage the business verticals and ensure quality checks of the products. As a result, various quality issues emerged that resulted in the decline of its growth.
Despite single-digit top-line growth in FY20, Baba Ramdev was hopeful that Patanjali will regain its lost glory.
Patanjali Ramdev reported a 9% jump in its revenue in FY21 and the net profit grew 14%. The net profit of Patanjali was Rs 485 crore while its revenue was around Rs 1000 Crores. The fast-moving consumer goods (FMCG) major Patanjali Ayurved has reported a 22% growth in its net profit for 2019-20 (FY20). According to the financial data accessed by business intelligence platform Tofler, the group’s flagship entity reported Rs 423 crore net profit for the year, compared to Rs 349 crore it had posted in 2018-19 (FY19).
Patanjali Ayurved, earned over 80% of Patanjali Group’s total revenue, such that its operating revenue grew 6% to Rs 9,023 crore in FY20.
The firm’s top-line growth remained higher than the previous year. In FY19, the Ayurveda major had clocked Rs 8,330 crore turnover – 2.4% higher than Rs 8,136 crore it had posted in 2017-18 (FY18).
Since its sales lost momentum in 2016-17 (FY17), Patanjali is yet to regain the momentum it used to have earlier.
In 2014-15 and 2015-16 (FY16), its revenue had grown 86% and 100%, respectively.
In recent years, its net profit, too, has suffered. Despite double-digit growth, Patanjali’s net profit fell well short of the Rs 1,190 crore it had reported four years ago.
In FY20, its net profit margin stood at 4.67%, compared to 13.3% in FY17 and 16% in FY16.
Some anticipated incomes of ₹5,000 crores ($720 million) for 2015–16. Patanjali proclaimed its yearly turnover for the year 2016-17 to be ₹10,216 crores ($1.5 billion). It was recorded thirteenth in the rundown of India’s most confided in brands (The Brand Trust Report) starting in 2018, and positions first in the FMCG classification.
Patanjali Ayurved Ltd has achieved a tremendous presence around the globe and throughout India in a very small time since its inception in 2006. They have more than 47000 retail counters, 3500 distributors, multiple warehouses in 18 states and proposed factories in 6 states.
Future Of Patanjali Ayurved
Patanjali is the quickest developing organization in the Indian FMCG segment, a $50 Billion industry once commanded by worldwide behemoths – a semblance of Unilever, P&G, Nestle, Colgate – Palmolive, Johnson and Johnson.
From cleanser and bread rolls to ghee and noodles, and now clothing and footwear – no indigenous organization has fabricated such a well-differentiated item portfolio. It has developed more than multiple times in income in the most recent five years and is an unmatched accomplishment in India’s FMCG industry.
The organization focused on incomes of Rs.10,000 crore for FY 2016-17 and Rs. 20,000 – 25,000 crore in FY 2018. It has a broad deals channel of more than 5000 merchants, 15,000 stores, and 100 uber bazaars.
Also, it has tied up with retail chains like Future Group, Reliance Retail, Hyper City, and Star Bazaar. The ongoing declarations of a Rs. 1,600 crore sustenance park in Noida and a Rs. 1,200 crore creation office in Assam highlight the buzz around Patanjali’s arrangements to showcase the organization’s hearty extension plan.
With a growth rate of 130%, the Patanjali Group is planning to make a foray into major global markets. As the group is already present in markets like the US, Canada, the UK, Russia, Dubai and some European countries, it is willing to spread its wings wider and farther.
Conclusion
Patanjali, being a Swadeshi brand has always been in the limelight because of its Ayurvedic products. Each of their steps has been cleverly strategized to bring the best to the brand. Even after facing a few setbacks, the company is standing tall as ever, being the fastest-growing company in the Indian FMCG sector.
Patanjali is expected to go a long way in the future, only if it manages to keep itself ahead of competitors. It has a major advantage over other competitors as Baba Ramdev, a famous Yoga teacher, is the face of the firm.
FAQs
Who is the founder of Patanjali products?
Baba Ramdev & Acharya Balkrishna are the founders of Patanjali products.
When was Patanjali established?
Patanjali was established in 2006.
Are Patanjali products FSSAI approved?
Many Patanjali products lack approval by the Food Safety and Standards Authority of India (FSSAI) the federal food safety regulator of India.
What strategy made Patanjali so successful?
The Swadeshi factor, and claim to be chemical-free products promoted by Baba Ramdev have proved to be a profitable strategy for Patanjali.
Who are the competitors of Patanjali?
The top competitors of Patanjali are:
Dabur India
Procter and Gamble
Marico
ITC
Nestle Ltd.
HUL (Hindustan Unilever Limited)
Baidyanath
Emami
Himalaya Herbal
What is the revenue of Patanjali?
The revenue of Patanjali was recorded $4.2 Billion in 2021.
In India, ayurvedic goods have dominated the whole medical and cosmetic sector. Patanjali’s development in the field of ayurvedic medications and goods is well-known throughout India. With a net income of Rs. 590 crores ($80 million), Patanjali has been recognised as India’s fastest-growing FMGC company. It was founded in 2006 by Yoga master Baba Ramdev and Ayurveda professor Acharya Balkrishna. Patanjali Ayurved Limited is the owner of the Patanjali trademark. Its headquarters are in Haridwar, Uttarakhand.
Patanjali serves the personal care and food sectors. It manufactures over 300 Ayurvedic medications for the treatment of various bodily problems and generates over 2,500 goods.
So, without further ado, let’s look at some unknown facts about Patanjali.
Acharya Balkrishna | Patanjali Founder and Chairman
In Haridwar, Acharya Balkrishna and Ramdev established Divya Yoga Pharmacy in 1995, which led to the establishment of Patanjali Ayurved. NRIs Sunita and Sarwan Poddar, who are Ramdev’s followers, helped the firm get off the ground with a loan.
Balkrishna said that he took out a Rs 60 crore loan without ever having a personal bank account in his name.
Patanjali’s Revenue Over the Years
In 2012, Patanjali made a total revenue of Rs 452 crores ($6.07 million), in 2013, it went up to Rs 849 crores ($11.4 million). In 2014, the revenue was Rs 1191 crores ($16 million) and in 2015, it went to Rs 2006 crores ($26.9 million). In May 2017, the firm said that its revenues had quadrupled in a year to over Rs 10,000 crore and in 2020 generated Rs 30,000 crores, making it India’s second-largest consumer products company, second only to Hindustan Unilever who they aim to beat by next year, with Amul now contending for second place.
The firm does not consider Baba Ramdev to be a shareholder. The yoga guru owns zero% stake in the business. Acharya Balkrishna, on the other hand, is the managing director of Patanjali Ayurved and has a 94 per cent share in the company.
How Does Patanjali Sell its Products?
Patanjali goods are offered through three types of medical centres: 1200 Patanjali Chikitsalayas (doctors’ clinics), 2500 Arogya Kendra (health and wellness centres), and 8000 Swadeshi Kendra (non-medicine outlets).
Baba Ramdev’s Patanjali established a collaboration with eight e-tailers earlier this year as part of a big push for the online distribution of Patanjali Ayurveda’s products.
Several E-tailers have partnered with Patanjali Ayurveda. These are:
These e-tailer collaborations will be in addition to the company’s website, patanjaliayurved.net, where it sells its goods online.
Patanjali’s Best Selling Products
Patanjali Best selling products
Patanjali’s cow ghee has brought in Rs 1,467 crore, accounting for 13.9 per cent of the company’s overall income.
Patanjali Ayurveda’s second most popular product, Dant Kanti toothpaste, has brought in the most money after cow’s ghee. According to the most recent information available, Patanjali’s Dant Kanti sold Rs 940 crore, accounting for 8.9% of total income.
The hair cleanser, Kesh Kanti, is another of Patanjali Ayurveda’s most popular products. Kesh Kanti, Patanjali’s haircare brand, had a revenue of Rs 825 crore, accounting for 7.8% of the company’s overall sales.
Patanjali Best products
What Percentage of Patanjali’s Income is Spent on Advertising and Publicity?
Patanjali invests 12-20% of its sales on distribution and research, according to data and sources. Patanjali has developed a unique word-of-mouth marketing strategy that generates all revenue without the use of advertising.
Patanjali’s fame did not emerge immediately; it grew over time as hundreds of thousands of pleased consumers multiplied into lakhs.
Patanjali’s Business Strategy
Patanjali Chikitshalya and Arogya Kendras have 10,000 locations where the staff constantly suggests Patanjali items. And the folks who attend their yoga camps are eager to promote the business. Baba Ramdev’s Swadeshi branding was added to the mix. Baba Ramdev also sells it on television and promotes it in his Yoga seminars around the country.
They also supply Patanjali brand usage and teach and certify medical practitioners chosen by Ayurveda clinics.
Due to the rub-off effect of Baba Ramdev’s qualifications in Yoga and Ayurveda, this instantly bestows confidence and credibility.
How did Patanjali become so popular?
Patanjali goods have grown in popularity in the recent year, even though the company was founded in 2006. The Haridwar-based firm brought in Rs 5,000 crore in revenue in 2015-16, up from about Rs 400 crore in 2011-12, Rs 2,000 crore in 2014-15, and now Rs 30,000 crores in 2020-21. In its FMCG range of roughly 300 goods, products like ghee and toothpaste have emerged as blockbusters, boosting their development even further.
The trend in Indian customers’ lifestyles toward natural and ayurvedic items and the fact that its goods are 20 per cent cheaper than most FMCG items might be the reason for its success.
Patanjali has a Food Park of its own
Patanjali Food Park
Patanjali Ayurveda has it is own Patanjali Food and Herbal Park, which runs under the Indian government’s food park plan. Not only that but the corporation is said to have opened one of the world’s largest food parks, with a total investment of Rs 500 crores. It is not only beneficial to the medical brand, but it also employs over 6,500 people and spans 100 acres.
Patanjali’s Divya Amla Juice and Shivlingi Beej Controversy
In a public notification dated June 21, 2017, the Nepal Department of Drug Administration requested that Patanjali Ayurved recall six medicinal items because they were determined to be of poor quality.
Patanjali’s Divya Amla Juice and Shivlingi Beej failed to fulfil quality criteria, according to an RTI request. According to the test result, Shivlingi Beej had 31.68 per cent foreign matter, and amla juice had a pH value below the permissible range. Between 2013 and 2016, 32 of the 82 samples collected failed the quality test.
According to a lab study from the Uttarakhand state government, the pH value of amla juice was determined to be less than the permissible level, which assesses the alkalinity of water-soluble compounds. Acidity and other medical issues may result from products with pH levels less than seven. The lab result was refuted by Acharya Balkrishna, who said it was an effort to smear Patanjali’s reputation.
The last financial year has been quite hard for Patanjali since sales were down due to the pandemic, but with the acquisition of the FMCG firm Ruchi Soya for Rs 4350 crores ($58.4 million), things have started to look up. Baba Ramdev has reported a 9 per cent rise in operational revenue while the net income has gone up to 14 per cent since 2020. Patanjali is expected to grow even more and beat its competition in the coming years.
FAQs
Who is the real owner of Patanjali?
Acharya Balkrishna is the owner of Patanjali. He is the chairman of the consumer goods company Patanjali Ayurved.
What is the USP of Patanjali?
Patanjali sells only Ayurveda based products in food, cosmetics and healthy FMCG products.
When was Patanjali started?
Patanjali was founded in January 2006 by Baba Ramdev and Acharya Balkrishna at Haridwar.
When it’s Ayurvedics products, no one can beat Patanjali. The widely famous Indian consumer goods brand, Patanjali is known to be very promising to the Indians. Patanjali was founded by Baba Ramdev, who is considered the yoga icon, along with Acharya Balkrishna.
Patanjali provides the manufacturing, distributing, and selling of incredible Indian household products. The most prominent thing about Patanjali products is that they are considered entirely natural, using the conventional methods of producing household products. Patanjali offers various consumer goods, minerals, herbal products, and Ayurvedic medicines.
The company was founded in 2006 with an official registered office in Delhi, India. The company’s headquarter is established in Haridwar, Uttarakhand. Patanjali utilizes the best technological method together with conventional prescriptions of Ayurveda and produces absolutely promising and natural products. In this article, we will be discussing the most remarkable business model of Patanjali and its revenue generation methods. Let’s get started!
Patanjali is known to be India’s multinational consumer products manufacturing company, headquartered in Haridwar, Uttarakhand, India. The company was established by Baba Ramdev and Acharya Balkrishna in the year 2006.
Patanjali produces various household products including cosmetics, Ayurvedic medicines, and food products. Patanjali serves various other countries, especially in the middle east and other Indian subcontinents.
Patanjali is known to be the fastest-growing FMCG company across India. As of 2019, the estimated valuation of Patanjali was around $35 billion (Rs. 3,000 crores). The annual turnover of the company is around Rs. 10,216 crores.
With the incredible success of the Patanjali brand, various companies like Colgate, Godrej Consumer, ITC and others, are majorly affected in the market. Patanjali has experienced some very remarkable developments in the market and gained a huge loyal customer base.
Where does Patanjali operate?
The official registered office of Patanjali is established in Delhi, whereas its headquarters is in the industrial areas of Haridwar, Uttarakhand. The company serves many foreign countries as well, especially in the Middle East and the subcontinent of India.
Patanjali has been remarkable with its products and services that’s why the company is growing more immensely towards its expansion in other countries.
Key products of Patanjali
Patanjali manufactures dozens of household products, categorizes them in various segments such as cosmetics, food products, personal care, beverages, and Ayurvedic medicines.
Later in 2018, the company expanded its hands and took over the manufacturing of clothes also. It even opened a store for clothing in Delhi under the brand name, Patanjali Paridhan.
Patanjali entirely focuses on targeting an immense Indian audience. The company provides goods at very low pricing and the influence of Baba Ramdev over the general public, promotes the Patanjali brand more vibrantly. Patanjali targets its audience entirely, without any sub-categories.
Business Model of Patanjali
The business model of Patanjali is based on the FMCG model. The company manufactures herbal and minerals based products and sells them in the market at some very affordable prices. Patanjali holds a huge network with people in its yoga and Ayurveda sector.
The Yoga sector has around 5 lakh branches and 5 lakh mentors in them for its Patanjali Yoga Samiti. Along with this, Patanjali’s consumer goods company gains immense profit. Patanjali has always been upfront for promoting and guiding people for yoga, it even organizes yoga-based camps across the country. Its Yoga network is pretty huge, which brings out great benefits to the goods brand.
Patanjali Yoga Camp
Patanjali’s business model is quite similar to the other FMCG-based companies, where they manufacture the products and sell them. But in comparison to other FMCG companies, Patanjali has experienced incredible growth.
Patanjali has made some remarkable marketing strategies that bring out great outcomes. Now, as we got the idea of Patanjali’s business model. Let’s move forward to how this business model is beneficial and unique for the company.
What is unique about the Business Model of Patanjali?
The most significant thing about Patanjali consumer goods company is that the company is built to provide quality to the customer and not engage with the burden of profit. Patanjali offers products at a very low price as compared to any other FMCG company. The company manufactures its products with the accurate raw materials obtained from the farmers in order to minimize the production cost.
The distributors and the retailers find very low profit through Patanjali products. That’s why Patanjali establishes its retail outlets in various cities and towns.
As being an FMCG company, Patanjali also manufactures the product and sells them. But aside from this, Patanjali has a huge loyal customer base with great marketing strategies in hand.
Patanjali increases its sales and revenue through the means of credible existence in the target base. Patanjali sells its products at some pretty low prices that bring out more reach and sales for the company.
Patanjali holds a very effective revenue generation method through its huge loyal customers base along with an absolutely affordable cost structure, obtaining various marketing tactics. Moreover, the company includes several distribution strategies including:
Patanjali Chikitsalaya: Doctors checkup the health of patients without any charge and recommend Patanjali’s Ayurvedic medicine.
Swadeshi Kendra: The outlets of Patanjali where you can find all the household and non-medicine products.
Patanjali Arogya Kendra:Yoga experts guides for yoga exercises and fitness tips and training for the customers. Also, they suggest various Ayurvedic medicines.
Conclusion
Patanjali is a remarkable FMCG-based company that manufactures incredible household products with great quality at very reasonable pricing. Patanjali prioritizes quality at the top and with such a huge loyal customer base, the company receives great outcomes. Patanjali has been in the market for over 15 years and in these years, the company has experienced incredible success and growth graph. And with time, the company is all set to achieve more heights.
FAQ
What is the revenue of Patanjali?
The revenue of Patanjali is 30,000 crores INR in 2021.
Who is the CEO of Patanjali?
Acharya Balkrishna is the CEO of Patanjali.
When was Patanjali founded?
Patanjali was founded on January 2006 by Ramdev and Balkrishna.
Balkrishna is positioned as the Doctor of Medicine (MD) and Chief Executive Officer (CEO) of the consumer goods company Patanjali Ayurved. He is an Indian Businessman and generally goes by the name Acharya Balkrishna. He basically works for producing multiform swadeshi and ayurvedic goods. According to the Forbes report, he has a net worth of 220 crores USD as of 2021. He is 99.6% owner of Patanjali Ayurved and heads 34 companies and trusts associated with Patanjali.
Balkrishna was born on 4 August, 1972 in Haridwar, Uttar Pradesh. His parents were Nepalese immigrants from Syangja, Nepal. His father, Jay Vallabh Subedi was employed as a security officer in an Ashram in Uttarakhand. Balkrishna received his primary and secondary education in Kalwa Gurukul situated at Haryana. After completing his studies, he traveled across India to study plants and their medicinal values. During the early days of the year 1990, he met Baba Ramdev at Tripura Yoga Ashram, Kankhal, Haridwar. They both gradually became friends. Balkrishna got along well with Baba Ramdev, and went to the Himalayas in 1993. Both of them soldChyawanprash on the streets of Haridwar during 1990s.
He is known to maintain a low profile. He is always dressed in white to embrace the aura of spirituality.
Balkrishna – Professional Life (Ayurveda)
People urged Balkrishna to sell medicine for common problems owing to his immense knowledge of herbs and Ayurveda. Gradually, he developed an organisation of ayurvedic medicines and treatment. Along with Baba Ramdev, Balkrishna established a trust called Patanjali Divya Yoga Mandir in Haridwar. They also developed a component “Divya Pharmacy” to manufacture ayurvedic medicines.
Balkrishna – Patanjali
Patanjali Logo
In 2006, both the partners founded a consumer goods company Patanjali Ayurved Limited. The company is widely admired in India and grossed huge profits. The company got really well in India and became the fastest-growing FMCG ( Fast Moving Consumer Goods) in 2010. He holds 98% stakes in Patanjali Ayurved. The company also, entered the Hurun India Rich List 2017 worth INR 25,600 crore. He is also the chairperson of Patanjali Yogpeeth. Inspite of his position in the company, he does not take any salary. In 2018, the company came up with a Patanjali Food and Herbal Park in Uttarakhand.
Though Ramdev Baba is the brand ambassador of Patanjali, the job of making decisions related to marketing strategy and advertising is left to Balkrishna. From hiring senior management staff to dealing with advertisers, he manages to do all the work single-handedly.
The partnership of Baba Ramdev and Acharya Balkrishna had shown a remarkable journey of the consumer goods company, Patanjali Ayurved. They have worked together phenomenally to make Patanjali a brand. They achieved this remarkable position with their appropriate marketing strategies. For example, they sell their products at lower prices than other FMCG brands, which entices Indian customers.
Balkrishna – Literary Career
He wrote more than 120 books and 100 research articles based on Yoga and Ayurveda. Moreover, he edited more than 25 unpublished ancient Ayurveda manuscripts. His most recent literary work of the year 2020 is Kumaramritam, Laghu Nighantu, Saushrut Nighantu, Siddhasara Samhita, Ashtang Nighantu, Hansraj Nidanam, Ajirnamrtamanjari. He serves as the Chief Editor of a “Yog Sandesh” magazine, which promotes yoga and Ayurveda. He has written 41 research papers with the help of his co-authors, and these are related to yoga and Ayurveda.
Balkrishna – Awards
Balkrishna receiving UNSDG Health Award
He received certificates of appreciation during a Yoga camp in the Rashtrapati Bhavan. On that very day, he was honoured by Dr. APJ Abdul Kalam. (2004)
He was honoured by the Government of Nepal for his research in Ayurveda and Culture. (2007)
He was awarded with the Sujana Shri award by Veeranjaneya Foundation for his spectacular contribution in herbal plants and yoga. (2012)
He was honoured by the former Chief Minister of Gujarat, Narendra Modi (Present Prime Minister Of India). The ceremony held at an Ayurveda Summit held at Gujarat. (2014)
He received more awards like Bloomberg Special Recognition Award, Felicitation by Canada India Network Society, Felicitation in Nepal’s Cabinet, Bharat Gaurav Award. He got 13 awards and titles till 2016.
He was named among the world’s 10 influential people by the United Nations Sustainable Development Group (UNSDG). He also received the UNSDG Healthcare Award in Geneva, Switzerland. (2019)
Moreover, his supporters celebrate his birthday as “Jadi Booti Diwas” (Herbs Day) owing to his deep knowledge of the herbal plants.
In 2011, he was charged with forgery for obtaining fake degrees to acquire an Indian passport. His academic degree as well as the Sanskrit degree from Sampurna Nand Sanskrit University were found missing from the official records. The CBI probed and investigated that the educational degrees he was having were falsifying. Thereafter, a big question mark was put on his Indian citizenship. Owing to the lack of evidences, the case was closed after two years.
The most recent controversy arose when Balkrishna launched a self proclaimed medicine Coronil, which will cure coronavirus in just 14 days. The chaos ran during the lockdown season as no other country had come with an aid to coronavirus. People were looking forward to buy Coronil. No sooner, it was declared that the claims are false and it is not a necessary aid to coronavirus. Netizens trolled Balkrishna and Ramdev Baba for such kind of marketing strategy. While Balkrishna claimed that the company has conducted a clinical research on corona positive patients, and they effectively got recovered in 14 days with the help of Coronil. Although, there is no scientific research that claims that the medical science of ancient India may cure coronavirus.
Balkrishna – FAQs
Who is Balkrishna?
Balkrishna is the Doctor of Medicine (MD) and CEO of Patanjali Ayurved. He is an Indian Businessman with vast knowledge on ayurveda.
What is the nationality of Patanjali owner?
Balkrishna, the patanjali owner nationality is highly debated on as his Indian passport was obtained with falsified degrees. His parents are Nepalese immigrants.
Who owns Patanjali?
Balkrishna holds 98% stakes in Patanjali Ayurved.
What is Balkrishna Net worth?
As of 2021, the net worth of Balkrishna is estimated to be around 220 crores USD.
