In the 1980s, an iconic TV ad featured the Nirma girl dancing to a catchy tune, marking the beginning of an unexpected business competition that eventually produced an unlikely Indian tycoon. Karsanbhai Patel, the son of a humble farmer and a science graduate, initially worked as a lab technician at New Cotton Mills in Ahmedabad, owned by the Lalbhai group. Following this, he served as a chemist for the Gujarat government’s Department of Mining and Geology in 1969.
Utilizing his laboratory expertise, Patel endeavored to create a detergent using soda ash and other materials. Once he perfected the formula, he began manufacturing detergents in his modest 100-square-foot garden as a part-time venture. Pedaling through neighborhoods, Patel sold his detergent door-to-door for Rs. 3,significantly cheaper than Hindustan Unilever’s Surf priced at Rs. 13. During his 15-kilometer daily bicycle commute to work, he sold an average of 15-20 packets each day, contributing to the surge in demand for Nirma in his hometown of Ruppur, Gujarat.
Recognizing the business potential, Karsanbhai Patel left his job after three years to focus on Nirma. He named the detergent in memory of his daughter Nirupama, affectionately known as Nirma, whose unfortunate demise was commemorated through the girl in the white dress featured on the packaging and in TV ads.
Nirma quickly gained popularity among the middle and lower-middle class, thanks to its high quality and affordable price. Diverging from the conventional strategy of expanding from major cities outward, Nirma adopted a bottom-up approach, targeting second and third-tier cities and towns instead of affluent areas where rivals like Surf dominated.
However, despite initial success in Ahmedabad, Nirma faced challenges finding retailers as shops hesitated to stock an unfamiliar detergent. In an attempt to boost sales, Karsanbhai extended credit to shopkeepers, but the delayed payments and excuses led to significant losses. This prompted him to instruct his team to retrieve all unsold Nirma packets from retail outlets, resulting in further financial setbacks for the company.
Despite these setbacks, Karsanbhai Patel’s determination and innovative approach ultimately reshaped the business landscape, making Nirma a household name in India.
Promotion played a crucial role in enhancing Nirma’s visibility, as Karsanbhai Patel devised a strategic initiative to address obstacles and enhance the brand’s awareness.
Nirma’s advertisements successfully positioned the brand ahead of rivals like Surf. While competing brands depicted mundane laundry activities, Nirma’s ads presented the chore playfully and engagingly, resonating with consumers. The heightened demand for Nirma detergent in the 1980s, driven by these advertising efforts, led the manufacturer to withdraw a significant portion of its supply from shelves temporarily.
In 1985, Nirma achieved a milestone by surpassing Surf to become India’s most popular detergent. By 1988, Nirma commanded a substantial 60% share of the country’s detergent market.
Expanding beyond its core product, Nirma diversified its offerings to include bathing soaps and introduced new products such as soda ash, salt, and scouring items. The brand’s success prompted a response from FMCG giant Hindustan Lever Limited (now HUL), leading to the launch of Wheel washing powder in 1988 as part of Operation STING (Strategy to Inhibit Nirma’s Growth). Despite HUL’s efforts, Nirma maintained its dominance, holding around 60% market share and selling over 1.72 lakh tonnes.
Nirma’s characteristic jingle, “Doodh si safedi Nirma se aaye, Rangeen kapda bhi khil khil jaye,” persisted in its advertising for over a decade. The brand’s Deepikaji character, competing with Surf’s Lalitaji, became a notable figure in the detergent market.
Washing Powder Nirma – Historic ad
While Nirma allocated a modest 3-4% of its revenue to marketing communications, significantly lower than competitors spending 6-8%, the brand remained consistent with its campaign over the years. Notably, Nirma collaborated with Bollywood actress Sonali Bendre to endorse its beauty soaps.
Sonali Bendre – Face of Nirma Beauty Soap
Despite these successes, Nirma faced challenges in diversifying its product portfolio, and introducing toothpaste and hair care products, but struggled to differentiate and position itself effectively. As consumer preferences shifted towards aspirational purchases, Nirma’s low-cost strategy began to lose traction, and the brand encountered difficulties in retaining market share against unbranded competitors. Efforts to introduce products like ‘Nirma blue’ and ‘Nirma cake’ fell short in creating a distinctive identity.
The Decline
In contrast to other detergent brands that embraced viral and diverse advertising campaigns along with a range of product offerings, Nirma maintained a consistent approach and refrained from innovation. While competitors, both multinational and local, focused on visibility, viability, and affordability in their messaging, Nirma primarily emphasized affordability. Despite cost increases in key ingredients like Linear Alkyl Benzene (used in detergent manufacturing) and palm oil (used in soap manufacturing), Nirma has refrained from raising its prices for an extended period.
According to analysts at a Mumbai-based brokerage firm, “While rivals have diversified products across various price points to counteract input cost effects, Nirma is solely positioned as a value-for-money option.” This singular focus has proven detrimental to the brand, resulting in a declining market share in its core business. The company’s stock price and profitability have witnessed a continuous decline since April 2006, with several key factors contributing to its downfall:
Lack of Innovation – Nirma has displayed minimal improvement and innovation in its product lines, reflecting a sense of complacency stemming from its market leader position and a failure to adapt to evolving market dynamics.
Consumer Perception – The low pricing strategy led consumers to perceive Nirma as an inferior brand. This perception was further exacerbated by the premiumization of the detergent segment by FMCG giants such as HUL and P&G.
Lack of Focus – Beyond its initial years, Nirma struggled to identify its core competencies and comprehend its strengths. Ventures into other segments proved costly for the company, contributing to its overall decline.
The case of Nirma serves as a compelling narrative of the business dynamics, emphasizing the importance of adaptability, innovation, and strategic focus in the competitive market. Despite facing setbacks in its later years, Nirma’s legacy remains intertwined with the dynamic shifts in consumer preferences and the evolving landscape of the FMCG sector in India.
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.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by ITC.
What comes to your mind when you read conglomerate company? To put it in simple sentences, a conglomerate is a grouping of various companies operating in distinct industries under one corporate umbrella; typically consists of a parent firm and numerous subsidiaries. They often have a big global presence.
The concept of conglomerate companies is not something from a recent era but began some 200 years ago. You will be surprised to know that it was during the First World War when it actually started.
Weimar, a city in Germany, experienced a temporary economic crisis as a result of the First World War, which allowed business owners to purchase companies for dirt cheap. Hugo Stinnes, founded Stinnes Enterprises, the most significant private economic conglomerate in 1920s Europe, which included businesses in a variety of industries, including manufacturing, mining, shipbuilding, hotels, and newspapers.
India is no less when it comes to conglomerate companies it has formed. One such company is known to be one of the biggest conglomerate companies in India. ITC Limited, the name nobody is unfamiliar with, was founded in 1910 as a British-owned company registered in Kolkata.
Today, ITC is India’s leading FMCG marketer. Not only FMCG, but ITC has diverse businesses in sectors such as Hotels, Paperboards and Packaging, Agri Business, and Information Technology.
In this article, we have curated all the important information regarding ITC’s startup growth, it’s business and revenue model, challenges, key products and services, shareholders, and future plans.
The Imperial Tobacco Company of India Limited, under W.D. & H.O. Wills, which is a British-based Tobacco manufacturer was founded in 1910. The company later changed its name to India Tobacco Company Limited in 1970, and then to I.T.C. Limited in 1974. The business is now known as ITC Limited, with “ITC” no longer serving as an abbreviation.
ITC is present in a variety of industries, including FMCG, hotels, packaging, paperboards & specialty papers, and agribusiness.
ITC is the only corporation in the world of its size and diversity to be carbon, water, and solid waste recycling positive, demonstrating its desire to be an example of sustainability practices.
Furthermore, over 5.5 million individuals, the bulk of whom are among the poorest in rural India, have sustainable means of subsistence thanks to ITC’s enterprises and value chains.
As of today, ITC has a market capitalization of US$35 billion and had an annual turnover of US$10.74 billion during 2019-20. It has more than 60 facilities across India and 36,500 employees.
ITC – Industry
According to a survey, the industrial sector, which consists of businesses in manufacturing, power, gas, and water, established more than 47,800 new businesses in FY22.
The conglomerate industry in India is picking up fast and changing the economics of the country.
ITC – Key People
ITC Limited is headed by Sanjiv Puri, who is the Chairman and MD of the company.
Sanjiv Puri
Sanjiv Puri is the Chairman and Managing Director of ITC Limited. With effect from December 6, 2015, he was appointed as a Wholetime Director on the ITC Board. He later assumed the positions of Chief Executive Officer in February 2017 and Managing Director again in May 2018. He was chosen to serve as Chairman, and that date is May 13, 2019.
Sanjiv Puri holds degrees from the Indian Institute of Technology in Kanpur and the Wharton School of Business in the United States. Most recently, the XIM University in Bhubaneshwar awarded him an honorary doctorate.
Sanjiv Puri has held the position of Chairman of the Expert Group established by the Fifteenth Finance Commission of the Government of India to promote agri-exports, and he has also participated in the NITI Aayog’s Farm to a Table discussion group on technology.
He received the Indian Institute of Technology, Kanpur’s “Distinguished Alumnus Award of the Year 2018” for his achievements. Another honour bestowed upon him was the “IMPACT Person of the Year, 2020” Award from exchange4media, a prestigious online news source.
ITC – Mission and Vision
ITC Limited vision is to maintain its ranking as one of India’s most valuable companies by performing at an international level and generating growth for the Indian economy and the company’s stakeholders.
ITC’s mission is, “To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value”
ITC – Name, Logo, and Tagline
ITC Logo
ITC’s name has been changed a few times. The company was originally known as ‘Imperial Tobacco Company of India Limited’ when it was under British ownership. Later, the company ventured into partnerships and was renamed the Indian Tobacco Development Company Limited.
After Independence, the company was changed to I.T.C Limited. In present times, the company is popularly known as ITC, not as a short-form of anything.
ITC goes by the tagline, “Enduring Values”
ITC – Startup Story
ITC traces back to 1910 as a British-owned company located in Kolkata, West Bengal, India. The company used to call Imperial Tobacco Company of India Limited. Soon after a year, to source leaf tobacco, the company entered into partnerships with farmers from the southern region of India.
The “Indian Leaf Tobacco Development Company Limited” was established under the company’s aegis in the Guntur district of Andhra Pradesh in 1912. The company had its first cigarette factory in Bangalore in 1913.
The company had its headquarters in the ‘Virginia House’ at Calcutta. After years of development and strategies, ITC decided to expand its footprint and purchased the Kidderpore factory of Carreras Tobacco Company in 1935. To drastically lower import prices, ITC assisted in the establishment of an indigenous industry to produce cigarette tissue paper in 1946.
Within three years, a printing and packaging facility was established by ITC in Madras. The company also purchased the manufacturing operations of Tobacco Manufacturers (India) Limited as well as Printers (India) Limited’s related lithographic printing operations in 1953.
Right after the purchase of Printers (India) Limited, ITC was converted into a Public Limited Company. With 6% of the company’s Indian shareholders, the first step toward Indianization was made in the same year. During this period, ITC also entered the consumer research market for the first time in India.
In order to achieve self-sufficiency in the production of cigarettes, technology was more heavily focused on throughout the 1960s when establishing cigarette machines and filter-rod manufacturing facilities. In a few years, the Indian shareholding grew further to 40%.
ITC started to enter the hospitality industry in 1975 and bought and renamed the ITC Welcomgroup Hotel Chola in Madras. The company selected the hospitality industry due to its potential to produce significant amounts of foreign exchange, develop tourism infrastructure, and produce a significant amount of direct and indirect employment.
As the shareholders kept growing, the company started to create more hotels in the following years. It was in 1979, the company entered the paperboards business by promoting ITC Bhadrachalam Paperboards Limited.
As the company kept growing, two more ventures were established by ITC – the ITC Classic Finance Limited and ITC Agro Tech Limited under its umbrella during the 1986s.
The Wills Sport line of casual clothing was introduced by ITC in the 2000s, and the company also entered the stationery and gifting industries by producing the Expressions line of greeting cards and Classmate notebooks.
ITC – Business Model
ITC business is a multi-industry company, and as a multinational company, it has different products and different target markets accordingly. The business model of ITC is to create products that benefit its target audience by giving them a vast range of products.
ITC sets its benchmark in various other sectors like FMCG, Agri-Business, Hotels, Paperboards and Specialty Boards, Packaging, and Information Technology.
Here let’s take the look at the key products that covers in the business model of ITC
FMCG
ITC houses around 25 brands under its FMCG market, thus making them one of India’s leading marketers in Fast Moving Consumer Goods Business(FMCG). It could be seen that the company’s strategic goal is to ensure long-term success by combining and using the varied set of competencies present across all of its businesses to take advantage of new opportunities in the FMCG industry.
Some of the brands that help us with our bare necessities in today’s age, are majorly by ITC, these are:
ITC Foods Brands – To name a few:
Sunfeast
Aashirvaad
Bingo
Yippee
B natural
Sunfeast Milkshake
Mint-o
Candyman
Sunbean
ITC Personal Care Brands;
Salvon
Vivel
Engage
Fiama
Nim Wash
EDW ESSENZA
Charmis
ITC Stationery Brands;
Classmates
Paperkraft
ITC Incense Brands;
Mangaldeep
ITC Safety Matches Brands;
Homelites
Aim
ITC Cigarettes Brands;
Insignia
India Kings
Classic
Gold Flake
American Club
Wills Navy Cut
Players
Scissors
Capstan
Berkeley
Bristol
Flake
Silk Cut
Duke & Royal.
Hotels
ITC business is also expanded in the hotel sector. The company launched its first hotel in 1975 by building on the assets of its excellent sustainability standards and pioneered the idea of “Responsible Luxury” in the hospitality industry. Presently, the company owns around 100+ hotels in various locations.
Some of the luxury and distinguished hotel brands by ITC are:
ITC Hotels
Mementos by ITC Hotels
Welcome Hotel
Storii by ITC Hotels
Fortune Hotels
WelcomHeritage Hotels
Paperboards and Packaging materials
The company is proud in meeting the needs of a broad range of industries, including those for FMCG cartons, electrical insulation papers, bio-based barrier coated boards, decorative laminate bases, writing and printing papers, and much more. ITC’s paperboard products range in Virgin Boards, Recyclable Barriers Boards, Recycled Boards, Barrier Boards, and Graphic Boards.
ITC has also been a prominent contributor to paperboard packaging in South Asia. Some of the packaging services provided by ITC are cartons packaging, flexible packaging, tobacco packaging, innovation, and new product development.
Agribusiness
Due to its involvement in reforming and reinventing the rural agricultural area, ITC, which also operates in the agriculture sector, has solidified its place as a prominent corporate in the agricultural industry in India. ITC also started a farmer empowerment plan known as the e-Choupal to help farmers build a strong community.
Today, e-Choupal is the world’s largest rural digital infrastructure. Some of the agri-products, that the company focuses on export and domestic trading are; Feed ingredients, Coffee, Marine Products, Food Grains, and Processed Fruits.
IT services
ITC Info Tech by ITC provides services in business and technology consulting. It offers its IT solutions to sectors like Banking & Financial, Services, Consumer Goods, Manufacturing, Healthcare Travel, and Hospitality.
Apparel business
ITC has diversified its business in apparel and fashion as well. Fashion brands that are owned by ITC are John Players and Wills Lifestyle. However, the company had been shutting the stores of Wills Lifestyle due to losses.
Marketing and Media Centres
To build its brand and advertise its companies, goods, and services, ITC engages in a variety of marketing and promotional initiatives. The brand uses a variety of promotional techniques, including print, digital, and electronic media, in its advertising campaigns. It has launched several advertising campaigns that are broadcasted across various media, including radio, television, billboards, etc.
ITC has roped in many celebrities to endorse their brands like Shah Rukh Khan for its food brand ‘Sunfeast’, Alia Bhatt for its ‘Sunfeast Dark Fantasy’ biscuits, famous cricket player like Yuvraj Singh, and Bollywood actress, Soha Ali Khan for ‘Classmate’, Kiara Advani for ‘Charmis’, and Tara Sutaria for ‘Savlon’.
R&D Activities
ITC has its own research and development centres. The R&D centre come under the brand name ITC Life Sciences and Technology Centre (LSTC). The centre is situated in Bengaluru, where it is involved in creating many innovative products and technology solutions to offer to its Indian customers.
CSR Activities
ITC has its own CSR policy where it aims to contribute as much as possible to building economic, social, and environmental capital towards the betterment of society in general. Women empowerment, Afforestation programme, Sustainable agriculture, Livestock Development, Watershed Development programme, Primary Education, Skilling & Vocational Training, Health & Sanitation, and Solid Waste Management are some of the CSR initiatives by ITC Limited.
ITC – Revenue Model
ITC mostly generates its revenue from the cigarette industry. Despite, the third wave of Covid, the cigarette sector’s revenue is up 10.2%.
For FY2021-22, the company’s overall Gross Revenue at Rs. 59101.09 crores increased by 22.7%, while EBITDA increased by 22.0% to Rs. 18933.66 crores.Profit Before Tax at Rs. 19829.53 crores grew by 15.5% over the previous year and Profit After Tax stood at Rs. 15057.83 crores (previous year Rs. 13031.68 crores). Total Comprehensive Income for the year stood at Rs. 15631.68 crores (previous year Rs. 13277.93 crores). Earnings Per Share for the year stood at Rs. 12.22 (the previous year Rs. 10.59).
ITC – Investments
ITC has made four investments till now. Their most recent investment was on 20 April 2022, when Mylo raised ₹1.3B. Other companies in which ITC has invested are Mother Sparsh Baby Care and Azgo.
ITC has invested around $1 million at Azgo in 2019 in corporate round funding.
ITC – Mergers and Acquisitions
ITC has bought two businesses. Sunrise Foods was their most recent acquisition as of May 25, 2020. They paid $21.5 billion to buy Sunrise Foods.
Century Textiles – Nainital paper unit is another company they acquired on 16 June 2011 at an undisclosed amount.
ITC – Shareholders
The equity shares of ITC are traded on the Calcutta Stock Exchange, the National Stock Exchange of India, and the Bombay Stock Exchange (CSE). Global Depository Receipts (GDRs) issued by the corporation are traded on the Luxembourg Stock Exchange. ITC is a component of the BSE SENSEX and NIFTY 50 of the NSE, two of the most important stock market indices in India.
ITC – Challenges Faced
In 2021, ITC was facing issues in operating outlets because of lockdowns imposed during the second wave of Covid-19. The company thinks that because of the second wave lockdown, it had severe economic and social disruptions. The limited time hours given during the lockdowns posed a big challenge for the company as there was no material supply and limited customers at its various stores.
ITC Hotels suffered a lot during the second wave as there were restrictions imposed by the Government to curb the spread of the pandemic.
ITC – Online and Social Media Presence
Since ITC plays a key role in marketing and promotional activities, it knows how to keep its audience engaged and keep them updated through its various brand awareness strategies and methods, it surely has a very strong social media presence. The LinkedIn page of ITC has 2,438,418 followers, Instagram has 12.3K followers, and the Twitter page has 40.2K followers.
ITC – Awards and Achievements
As one of the leading Multinational Companies in India, ITC has received many awards and achievements. Take a look at the below list of some major awards won by ITC:
Pulp & Paper International (PPI) Awards by Fastmarkets RISI
First Prize At National Water Awards, 2022
EFI CII National Award for Excellence in Employee Relations, 2021
ICSI CSR Excellence Award, 2021
ITC’s Savlon wins big at Cannes 2017
Excellence in Corporate Governance and Integration’ – Porter Prize, 2017
World Business Development Award 2012, RIO
ITC – Advertisements and Social Media Campaigns
ITC knows its game when it comes to marketing itself. In 2020, ITC launched a social media campaign to voice out the different products it makes and reflects the essence of the ‘Made In India’ initiative.
With the #ProudlyIndian Campaign, ITC wanted to grasp the Indian audience for being an important contributor to the nation with its myriad options of products, which are manufactured on Indian soil with cutting-edge technology centres and Indian farmers.
In 2021, ITC Vivel launched a campaign on Women’s Equality day to salute all the homemaker women. With ‘Ab Samjhauta Nahin’ philosophy, the campaign highlights the gap between working professionals’ and homemakers’ expectations.
With its #RespectWorkForHome campaign, the brand celebrates the dedicated, persistent, and selfless work of housewives. The brand demonstrates the long-standing problem of discrimination based not only on a person’s gender but also on the sort of labour performed.
ITC – Competitors
ITC competes with the following companies:
In the FMCG sector
Hindustan Unilever Limited (HUL)
P&G
Coca-Cola
Dabur
Danone
L’Oreal
Colgate
Nestle
Godrej Consumer Products
In Cigarettes Sector
Raghunath
Godfrey Phillips India
Vazir Sultan Tobacco
Golden Tobacco
Philip Morris International
In Hotels Sector,
Taj Group of Hotels
Oberoi
Leela Hotels
FAQs
Is ITC private or government?
ITC is a private sector company that has its presence in Cigarettes, Hotels, Paperboards & Specialty Papers Packaging, Agri-Business, Packaged Foods, Branded Apparel, Personal Care, Stationery, Safety Matches and much more.
Who is the biggest shareholder of ITC?
Tobacco Manufacturers India Ltd is the biggest shareholder of ITC.
Is ITC an Indian company?
Yes ITC is an Indian conglomerate headquartered in Kolkata.
The article is contributed by Shashank Jain, Co-founder, Strawfit (Bourgeon Foods LLP)
Owing to a decade of technological advancement and the last few years of the pandemic, there has been a fundamental change in the way businesses and customers engage with each other. After the jolt that the traditional retail sector faced, there’s a rise in India’s currently growing direct-to-consumer phase, with D2C brands thriving as online channels have become the go-to destinations for almost every consumer. For those still struggling with the concept, Direct-to-Consumer, or D2C, is an emerging business model of a customised shopping experience where the product is provided directly to the customer by a business, bypassing any sort of middleman in between, hence being cost-efficient.
With an estimated 700-800 D2C brands valued at over USD 100 billion by 2025, India is expected to be a hotspot for startups. A plethora of emerging service providers in India indicates the total addressable D2C market growth by over 15 times from 2015 to 2025. According to research by Statista, this total addressable market was valued at 33.1 billion U.S. dollars in 2020, which by 2025 was forecasted to grow almost threefold, making India a hotspot for startups. Currently, the segments that are growing at an ever-increasing speed in the Indian D2C market include consumer electronics and FMCG, with an expected worth of USD 43.2 billion and USD 30.8 billion, respectively, by 2025.
The popularity of the D2C industry is booming and will continue to expand. To increase buyer-seller interaction, making purchasing more engaging, pleasurable, and long-term, brands in this space leverage certain market trends.
Some of these trends that we recommend entrepreneurs in their operations are:
● Sustainable Manufacturing: Consumers are increasingly sceptical of brands that generate revenue through unethical business practices. Brands that are transparent about their business practices, from sourcing raw materials to manufacturing and supplying, generate more goodwill. Transparency creates trust, and people are more likely to buy from brands they trust. Brands that fail to build sustainability into their business models risk becoming less relevant to this new generation of consumers.
● Data Analytics: Until recently, brands had little access to customer data beyond surveys or third-party data. D2C enables brands to understand customers and their demands like never before, thanks to their continual personal connection with their customers through their experiences or surveys. Brands have realised that customer data is a powerful instrument that, when combined with analytics and technology, can be utilised to provide personalised experiences for customers.
● Leveraging Social Media: Social networking is a strong tool for new businesses. Platforms like Facebook, Instagram, and Twitter can assist you in reaching an untapped worldwide audience and assist in developing a brand image in the market with existing competitors. Influencers have a strong and tailored hold on specific audiences, making them one of the newest and most powerful marketing tools. A product like a milk flavouring straw for kids, for example, can’t be directly promoted to them and is instead marketed to mommy bloggers and health bloggers. More than just following these trends, it takes a lot of work to create a solid revenue model for your business. Running a business at any stage of development is not easy. For this, it is essential to have proper planning. Here are some of the key takeaways that we believe can help these entrepreneurs make more informed decisions and develop more refined products, especially in the early stages of a business.
● Bring forward a solution: Consumers are smart these days, searching for products that solve their current problems. The most common reason for a startup’s failure is a lack of market demand. You have a market need if your product solves an unpleasant, common, and repeatable problem for a large number of people. If not, then it can be easily overlooked by the customers.
● Focus on the product: The product you create is what makes up the face value of your brand and it’s a crucial task to make your product stand out in the market. Your main focus should be to at least give your product a competitive edge over the current competitors, so it seems like a convenient and better choice.
● Detailed Research: Before starting a business, thorough market research is essential. You have to research current trends, learn about the product, and understand its potential market and what your customers need. It also allows you to visualise your competition by telling you what other products and services like yours are available, customer reactions to them, their prices; etc.
● Financial Modelling: Managing monetary resources can be a tricky part that needs close attention. It is essential to have a well-developed financial model. From funding operations to having precise financial projections for the next few years, having a robust financial model is crucial for a business to grow. Don’t mind taking professional guidance to help you out with these things to avoid any major setback to your business.
● Keep trying and learning: Starting a business requires being inspired, motivated and willing to take risks. While every successful entrepreneur makes many mistakes, that doesn’t stop them from experimenting with their concepts and learning from their own and others’ mistakes. With that said, care also needs to be taken so that there is no undue waste of resources due to this experimenting.
Conclusion
With more people choosing to be independent buyers due to fading technological barriers, we believe that D2C is here to stay. It is an exciting time for entrepreneurs in the country to enter the market, especially with the boom in the startup culture. The times demand that entrepreneurs rethink how they interact with customers and their relationships with them. If played well, D2C can be the most powerful weapon a retail-based entrepreneur can hold.
Hindustan Unilever Limited (HUL) is a British-Dutch assembling organization headquartered in Mumbai, India. The items of Hindustan Unilever Ltd incorporate nourishments, drinks, cleaning specialists, individual consideration items, water purifiers, and purchaser merchandise. HUL was set up in 1933 as Lever Brothers and following the merger of its constituent gatherings in 1956, HUL was renamed Hindustan Lever Limited. The organization was then renamed in June 2007 as “Hindustan Unilever Limited”.
At the start of 2019, the Hindustan Unilever Limited portfolio had 35 items marked in 20 classifications and utilized 18,000 representatives with offers of Rs. 34,619 crores in 2017-18. In December 2018, HUL reported its procurement of Glaxo Smithkline’s India business for $3.8 billion out of an all value merger manage ratio of 1:4.39.
However, the joining of 3800 representatives of GSK stayed questionable as HUL expressed there was no provision for maintenance of workers in the deal. In January 2019, HUL said that it hopes to finish the merger with Glaxo Smith Kline Consumer Healthcare (GSKCH India) this year.
Hindustan Unilever Limited (HUL) is India’s biggest quick-moving customer merchandise organization. HUL works in seven business sections.
The cleanser segment incorporates cleansers, cleanser bars, cleanser powders, and scourers. Individual items incorporate items in the classifications of oral consideration, healthy skin (barring cleansers), hair care bath powder, and shading beautifiers. Refreshments incorporate tea and espresso.
Nourishments incorporate staples (atta salt and bread) and culinary items (tomato-based items natural product-based items and soups). Frozen yogurts incorporate frozen yogurts and solidified treats. Others incorporate synthetic substances and water business.
HUL’s item portfolio incorporates family unit brands—for example, Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair and Lovely, Pond’s, Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, and Bru, Knorr, Kissan, and Kwality Wall’s. HUL is a backup of Unilever, one of the world’s driving providers of food products, home care, personal care, and refreshment items with deals in more than 190 nations and a yearly turnover of $6.08 billion in 2020.
Hindustan Unilever Limited traces its origins to Unilever, a British-Dutch multinational company, which is the parent of HUL. William Hesketh Lever was a popular social reformer and is regarded as one of the main propagators of several significant employee benefits options like benefits of health, savings, and more. Thus, his ideologies largely seeped into Unilver and resulted in developing its strong sense of corporate responsibility and leadership. This culture was invariably passed on to the Hindustan Unilever Limited (HUL).
The British-Dutch company Unilever, which emerged as a result of the merger of the operations of Dutch Margarine Unie and British soapmaker Lever Brothers, when it first came to India, discovered the rich and largely unexplored potential of the Indian market. Soon after, the establishment of Hindustan Vanaspati Mfg. Co. Ltd. followed in 1931, which was succeeded by the foundation of Lever Brothers India Limited (1933) and United Traders Limited (1935). The Indian subcontinent had only been importing FMCG products, branded under Lever Brothers since then, the first of which were spotted as early as 1888. Following this, brands like Lifebuoy stepped in 1895, along with other famous companies like Pears, Lux, and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.
The 3 Unilever companies – Hindustan Vanaspati Manufacturing Company, Lever Brothers India Limited, and United Traders Limited eventually merged together to form HUL in November 1956. HUL offered 10% of its equity to the Indians and soon swooped into the news, being the first foreign subsidiary to do so.
The organization obtained Lipton in 1972, and Lipton Tea (India) Ltd was consolidated in 1977. Brooke Bond joined the Unilever overlap in 1984 through a global obtaining. Lake’s (India) Ltd joined the Unilever overlap through a worldwide securing of Chesebrough Pond’s USA in 1986.
The progression of the Indian economy, which began in 1991, denoted an enunciation in the organization’s development bend. The expulsion of the administrative structure enabled the organization to investigate every item and open-door section with no imperatives on the creation limit. At the same time, deregulation allowed acquisitions and mergers.
The Tata Oil Mills Company (TOMCO) converged with the organization with effect from April 1, 1993. In 1996, Unilever and Lakme Ltd framed a 50:50 joint endeavor, Lakme Unilever Ltd, to advertise Lakme’s market-driven beautifiers and other suitable results. In 1998, Lakme Ltd offered its brands to Unilever and stripped its half stake in the joint venture.
In 1994, the organization and US-based Kimberly Clark Corporation framed a 50:50 joint endeavor—Kimberly-Clark Lever Ltd—which markets Huggies Diapers and Kotex Sanitary Pads. The organization likewise set up a backup in Nepal called Unilever Nepal Limited (UNL). UNL’s production line speaks to the biggest assembling interest in the Himalayan kingdom. In the1992, Brooke Bond gained Kothari General Foods with critical interests in instant coffee.
In 1993, HUL acquired Kissan from the UB Group and the Dollops ice-cream business from Cadbury India. Tea Estates and Doom Dooma, two major organizations of Unilever, were converged with Brooke Bond. At that point, in 1994, Brooke Bond India and Lipton India converged to shape Brooke Bond Lipton India Ltd (BBLIL) to empower more noteworthy concentration and guarantee collaboration in the customary beverages business. BBL converged with Unilever with effect from January 1, 1996.
The internal rebuilding finished with the merger of Pond’s (India) Limited (PIL) with HUL in 1998. The two organizations had huge covers in personal products, specialty chemicals, and export organizations; other than a typical appropriation framework since 1993 for personal products. The two additionally had a typical administration pool and an innovation base.
In January 2000, the administration chose to grant 74% value in Modern Foods to Unilever. This started the divestment of government value in open division endeavors (PSU) to private area accomplices. The organization’s entrance into bread production is a key augmentation of the organization’s wheat business. In 2002, the organization procured the administration’s residual stake in Modern Foods.
Journey Of Hindustan Unilever
In 2002, the organization made its entry into Ayurvedic well-being with its Ayush item range and Ayush therapy centers. In 2003, the organization procured the Cooked Shrimp and Pasteurized Crabmeat business of the Amalgam Group of Companies, an innovator in marine products trades. Additionally, the organization propelled Hindustan Unilever Network Direct to home business. In 2004, the organization launched the ‘Pureit’ water purifier.
In 2005, Lever India Exports, Lipton India Exports Ltd, Merry climate Food Products, Toc Disinfectants Ltd, and International Fisheries Ltd were amalgamated within Unilever. In February 2006, Vasishti Detergents Ltd (VDL) converged with Unilever. In September 2006, Modern Foods Industries (India) Ltd & Modern Foods and Nutrition Industries Ltd were included. In October 2006, Unilever stripped its 51% controlling stake in Unilever India Shared Services Ltd, currently known as Capgemini Business Services Pvt. Ltd., to Cap Gemini SA.
In March 2007, Sangam Direct, a non-store home conveyance retail business managed by Unilever India Exports Ltd (UIEL) and a completely possessed auxiliary, was moved to Wadhavan Foods Retail Pvt Ltd (WFRPL) in a droop deal business. Likewise, Unilever completed the demerger of its operational offices in Shamnagar, Jamnagar, and Janmam and shaped three autonomous organizations —Shamnagar Estates Ltd., Jamnagar Properties Ltd, and Hindustan Kwality Walls Foods Ltd. In June 2007, the organization changed its name from Hindustan Lever Ltd to Hindustan Unilever Limited.
In 2008, the organization reported its coordinated efforts with the Indian Dental Association (IDA) related to World Dental Federation (FDI) through the Pepsodent brand to help improve the oral well-being and cleanliness benchmarks in India. In April 2008, the organization demerged and moved certain immovable properties to Brooke Bond Real Estates Pvt Ltd. In January 2010, the organization introduced its new corporate office.
In April 2010, Unilever affirmed the plan of amalgamation of Bon Ltd, an entirely possessed backup of Hindustan Unilever Limited, with it. The selected date for the previously mentioned plan was 1 April 2009 and the plan was made viable from April 28, 2010. Ensuing to the amalgamation, Bon Ltd stopped being an auxiliary of the company.
During 2010-11, Kissan forayed into a new market fragment in three major classifications. It propelled Kissan Fruit and Soya, a delightful mix of organic product juice and soya milk, which appreciated a separated suggestion in this market. The brand likewise went into the Indian (non-sweet) spreads showcase with the dispatch of Kissan Creamy Spread over key towns. In the bakery division, the organization propelled two new items—Chapi and Cream Rolls. The organization stripped 43.31% stake in Hindustan Field Services Pvt Ltd for Smollan Group (the JV accomplice).
Along these lines, Hindustan Field Services Pvt. Ltd. stopped being a backup organization. Lakme Lever Pvt Ltd, a completely claimed auxiliary of HUL, extended the system of Lakme Beauty Salons in that year with the opening of 11 franchises and oversaw salons alongside 18 franchisees’ salons.
In December 2011, the organization demerged the FMCG sends-out business, including explicit fares related to assembling units of the organization, into its entirely claimed backup Unilever India Exports Ltd (UIEL). The plan wound up successful on January 1, 2012.
Hindustan Unilever Limited- One Team One Dream
In 2012, the organization went into a concurrence with Unilever to showcase Brylcreem in India. During the year under audit, Unilever and elements of Piramal Realty (Ajay Piramal Group) consented to an arrangement for the task of HUL’s leasehold privileges of the land and building named Gulita arranged at Worli Sea Face Mumbai for an exchange estimation of Rs. 452.5 Crore.
On 22 January 2013, the Board of Directors of HUL affirmed a proposition to consent to another arrangement with its parent organization Unilever for the arrangement of innovation exchange imprint permit, trademark registration, and other services on 1 February 2013. This new understanding underlined that the loyalty cost of 1.4% of turnover payable by HUL to Unilever will increment in a staged way to an eminence cost of 3.15% of turnover, no later than the money-related year finishing 31 March 2018.
The expansion in eminence cost in the period from 1 February 2013 to 31 March 2014 is assessed to be 0.5% of turnover and from there on in the scope of 0.3% to 0.7% of turnover in each money related year, paving the way to a complete evaluated sovereignty cost increment of 1.75% of turnover contrasted with existing courses of action no later than the monetary year finishing 31 March 2018.
In 2014, Unilever reported an organization with Internet.org, a Facebook-directed coalition of accomplices to see how web access can be expanded to contact millions of individuals crosswise over India. The organization additionally dispatched Prabhat activity for network improvement in towns around its industrial facilities during the year under survey. Furthermore, the organization also went into association with MTV to embrace its brands during the year under review. In 2015, the organization propelled The Unilever Foundry.
During the year under audit, the organization was perceived as the most inventive advertiser at the Mobile Marketing Association (MMA). The organization additionally resuscitated Ayush with e-dispatch during the year. Besides, it also propelled the ‘Swachh Aadat Swachh Bharat’ program in India during the year under review. On 8 September 2015, HUL reported that it has further consented to bring forth an arrangement for the deal and the transfer of its bread and pastry shop business under the brand Modern to Nimman Foods Private Limited, an investee organization of the Everstone Group, for an undisclosed amount.
HUL is the market chief in Indian buyer items with products in more than 20 purchaser classes (for example, cleansers, tea, cleansers, and shampoos among others). Sixteen of HUL’s brands were included in the ACNielsen Brand Equity rundown of 100 Most Trusted Brands Annual Survey (2014) which was completed by Brand Equity, an enhancement of The Economic Times. There are many brands and products owned by Hindustan Uniliver:
Brands And Products Of Hindustan Unilever Limited (HUL)
Food Products
Annapurna salt and Atta (once known as Kissan Annapurna)
Bru gold
Brooke Bond 3 Roses, Taj Mahal, Taaza and Red Label tea
Kissan squashes, kinds of ketchup, squeezes and sticks
Lipton ice tea
Knorr soups and supper creators and soupy noodles
Kwality Wall’s solidified treat
Modern Bread, prepared to eat chapattis and other pastry shop things (presently offered to Everstone Capital)
Magnum (ice cream)
Homecare Brands
Wheel cleaner
Cif Cream Cleaner
comfort cleansing agents
Domex disinfectant/toilet and bathroom cleaner
Rin detergent products
sunlight cleanser and shading care
Surf Excel cleanser and delicate wash
Vim dishwash
magic – Water Saver
Personal Care Brands
Aviance Beauty Solutions and products
Axe deodorant and aftershave lotion and soap and accessories
Lever Ayush Therapy ayurvedic health care and personal care products and items
International breeze
Brylcreem hair cream, hair gel and hair products
Clear anti-dandruff hair products
Clinic Plus shampoo and oil
Close Up toothpaste
Dove skin cleansing & hair care range: bar, lotions, creams, and antiperspirant deodorants
Hindustan Unilever is an FMCG company that leverages its Direct to Consumer (D2C) business model and has made over 50 billion in revenue, as discovered in 2017. The company has crossed INR 50,000 cr ($6.55 bn) in turnover during FY21, as per the reports on April 2022. HUL is the first pure FMCG brand to hit such a milestone.
The business model of Hindustan Unilever is propelled with the idea of making living sustainable feasible for the masses. With sustainable living, HUL wants to bring about:
Bettering the future of the children
A future full of confidence
A future full of health
A future that is better for the planet
A future that is better for the farming and farmers of India
The beauty and personal care segment of Hindustan Unilever helps the company see the most profit, while the food and refreshments segment is declared as the fastest-growing segment of the company. Home care is another segment of the company among its 3 primary segments.
The Hindustan Unilever company gets its competitive advantage from the global footprint it has and the track record of the company for enhancing value for its consumers around the globe.
Some of the prominent patterns that are noticeable in the business model of HUL are:
Reverse Innovation
Reverse innovation refers to the process of building products for industrial countries and then adapting them to the emerging markets. The technique of reverse innovation is what is truly wielded by HUL, which has been a prominent inspiration for many other big brands. The ‘Knorr Stock Pot’ that the brand came up with is an excellent example of leveraging reverse innovation. This technique was mastered by HUL by taking references from the famous ‘Dense Soup treasure,’ which was the first major example of reverse innovation, launched in China in 2007.
Focussing on the financially weak
In contrast to the other foreign subsidiaries, HUL ideated to focus on the financially weaker sections of the country, which led them to focus on the majority of the Indian people. Citing the discovery of Wheel detergent powder is one of the examples where Hindustan Unilever created products for the majority of the Indian consumers. Wheel had lower oil-to-water ratio, which enabled Indian to wash textiles even in rivers with hands. Wheel was then made available cleverly by the brand in the local corner shops as well as via door-to-door representatives.
Staying keen on the Triple Bottom Line
While most of the companies solely focus on the profit part of the follow the Triple Bottom Line with only a little focus on the other segments, HUL has a new approach where the brand decided aimed for the other segments, thereby caring for people and the planet.
HUL largely focuses on the people, including its consumers and others. For instance, the company changed the name of one of its popular products “Fair and Lovely” to “Glow and Lovely”, following the All Black Lives Matter movement that raged globally. This instantly made HUL a favourite!
Significant Distribution Strategy
The distribution strategy that Hindustan Unilever follows is exemplary! It focuses on hyperlocal markets, retail stores, wholesalers, hypermarkets convenience stores, ecommerce, and more. This hugely helps in the promotion of the HUL products and moving them fast to the consumers!
Business Growth In India
FMCG giant Hindustan Unilever Limited (HUL) announced a 15.98% development in solidified net benefit at Rs 6,060 crore for the monetary year finished March 31, 2019, when contrasted with Rs 5,225 crore in 2018. The net profit that HUL witnessed in FY21 rose by 18% YoY at Rs 7,954 crore.
Business Growth Of Hindustan Unilever
Remarking on the profit, HUL Chairman and Managing Director Sanjiv Mehta stated, “We have conveyed a solid execution for the quarter regardless of some balance in rustic market development. Our attention to fortifying the center and driving business sector advancement has been reliably conveying great outcomes. We have now developed top line and primary concern for the eighth continuous year and our 2019 outcomes were a demonstration of both our technique and execution.”
Growth Of Hindustan Unilever
“Given the large-scale monetary pointers, close term advertise development has directed. Notwithstanding, the medium-term viewpoint remains positive. As an association, we are well-situated to react with speed and nimbleness to address the issues of our shoppers. We stay concentrated on our vital plan of conveying predictable, focused, beneficial, and dependable development,” he included.
“Together with the between time profit of Rs 9 for each offer, the all-out profit for the money-related year closure March 31, 2019, adds up to Rs. 22 for every offer,” the organization said. “Combined income for 2018-19 remained at Rs 39,860 crore, up from Rs 36,622 crore a year sooner,” HUL said in a document to the Bombay Stock Exchange.
Hindustan Unilever’s Volume Growth
HUL’s business in India developed by 12%, driven by 10% volume development in the household advertise. In the January-March quarter, the organization posted 13.84% development in its independent net benefit at Rs 1,538 crore when contrasted with Rs 1,351 crore in a similar quarter a year ago. The offers of the organization remained at Rs 9,809 crore in Q4FY19 from Rs 9,003 crore in Q4FY18, enrolling a development of 8.95%. The working benefit (EBITDA) for the March quarter was up 13% year-on-year at Rs 2,321 crore and the EBITDA edge was up 90 bps.
Challenges Ahead Of Hindustan Unilever
The organization said that the edge improved because of judicious administration of instability in costs (unrefined and money driven) alongside improved blend and working influence.
HUL reported that its Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 11,324 crore, while the EBITDA margin was reported to be 25% during FY21.
Hindustan Unilever NSE 0.01 % (HUL) may clock 9-10% development in June quarter benefit despite a slight balance in volumes because of value climbs crosswise over classes. IIFL Institutional Equities expects the FMCG major to report a 6% volume development, a slight control from the 7% volume development recorded in the past quarter.
Growth Prediction Of Hindustan Unilever
“Our channel checks give us a feeling that the organization has started value climbs crosswise over classes, (for example, cleansers, espresso), among others. We along these lines gauge a business development of 9%, like the past quarter level. We expect the slight withdrawal in gross edge to be counterbalanced by influence in promotion spending and different costs. In general, EBITDA and PAT are relied upon to develop at 13% and 12%, individually,” IIFL said. IDFC Securities expects HUL to report 10.3% to ascend in benefit at Rs 1,728 crore. It sees deals developing at 8% to Rs 10,250 crore.
“We expect 6% volume development and factor in deals development of 11% in home consideration and 7% in close to home consideration portions. Lower advertisement spends (down 80 bps YoY) and commands over different overheads will help EBITDA edges,” it stated while proposing edge at 24.3% against 23.7% the previous year. Edelweiss sees income, Ebitda, and benefit development at 7.3%, 8.6%, and 7.7% YoY.
Hindustan Unilever’s Performance In Past Years
“We anticipate that HUL’s volume should grow 5% YoY on a high base of 12% YoY development. Q1FY18 was affected by GST dispatch thus the best approach to take a gander at volume development is three years’ normal, which will be 5.6%. Delicate quality in the second 50% of Q4FY19 proceeded for the full quarter in Q1FY20. Provincial development is presently at a similar level as urban development. A mixed value climb of 2.5% has been taken. On EBITDA edge front, we expect 20-30 bps YoY development,” the business said.
FAQs
What is Hindustan Unilever origin?
Hindustan Unilever or Hindustan Unilever Limited (HUL) is an Indian subsidiary of Unilever, which sprung from its Dutch-British roots. HUL is headquartered in Mumbai.
Who is the owner of Hindustan Unilever Limited?
HUL is owned by Unilever, its British multinational parent, headquartered in London.
What is HUL?
HUL is the acronym for Hindustan Unilever Limited.
Who are Hindustan Unilever founders?
Hindustan Unilever founders can be cited as 3 parent companies – Hindustan Vanaspati Mfg. Co. Ltd., Lever Brothers India Limited, and United Traders Limited, which were merged to form HUL.
When it comes to oral care or toothpaste, in particular, there is one brand that immediately pops up in every Indian’s mind and that is Colgate. For over 200 years, Colgate has been carrying out its business internationally. Even today in India, Colgate is a brand that is known for its quality, its affordability, its product range, and most importantly its goodwill.
It has been a trusted brand for oral care products and has satisfied the needs of millions of customers. Be it the toothpaste, toothbrush, mouthwash, or dental floss, the company has never seen a great downfall in the market.
One of the major reasons for the success of Colgate in India and internationally has been the marketing strategies and ways of branding. The company applies effective marketing strategies according to its market segmentation, demographic, psychographic, and consumer behavioral patterns. To know more about Colgate, its history, and its marketing strategies, watch this space.
Founded in the year 1806, India’s No.1 toothpaste brand, Colgate was a soap, starch, and candles business back then. William Colgate found the company Colgate in New York. After he passed away Samuel Colgate ran his business and in the year 1873, a new product was launched – toothpaste that was then sold in jars. Since the 1920s the company started operating its business in other countries as well. By the end of the 1980s, the company was popular and successful in selling toothpaste that was to prevent cavities, bad breath, whither teeth, resolving gum bleeding problems, etc.
The Company has always targeted to shoot advertisements with prominent celebrities. Very popularly the Colgate Max fresh has always been promoted by Ranveer Singh which depicts that the toothpaste is equally fresh and energetic as Ranveer is.
Also, there are many other advertisements where many Bollywood celebrities have been associated like Kareena Kapoor, Shahrukh Khan, and Madhuri Dixit. Colgate has been collaborating with YouTubers as well which has targeted and reached millions of millennials.
Colgate Brand Endorsement
Location-Based Targeting
Colgate has always been a master when it comes to ad campaigns and marketing strategies. They tap different locations with different marketing strategies and get a lot of success in the form of positive response and lead generation. One such example of Colgate’s marketing strategy based on location was the Kumbh Mela, the largest spiritual gathering of Hindu devotees.
Kumbh Mela Campaign of Colgate
Colgate tapped this market very well and understood that most people who were present in this area had low levels of literacy rates. To make them aware of the brand and the product, Colgate had sent voice messages via radio and mobile phones.
The virtual network that the company created around Kumbh Mela was a perfect location-based approach to the target audience. The message spread to the pilgrims was to visit the Colgate booths and receive free samples of Colgate toothpaste along with that stand a chance to win prizes.
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Colgate is very witty when it comes to the packaging of its products. The packaging is very youthful, bright well has very decent which appeals to all kinds of masses as well as spreads the right message across.
Be it the Cavity protection toothpaste or max fresh toothpaste the company’s advertisement commercials and advertisement campaigns aptly signify what they are offering and by concentrating on the solution to the very specific problem of oral health, they gain the trust of the masses.
Building Trust Among Customers
Colgate has always touched upon the sentiments of the masses and has engaged the masses through its heartwarming stories. Not only the company has build trust in the market by providing quality and affordable products but also has participated in numerous social causes, which has increased the trust of Indians.
Colgate has participated and partnered in various NGO’s and social activities which have indirectly always been a part of one of the most effective branding and marketing strategies.
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Colgate has its operations since 1957 in India. It was a market mover then since it was the only company that provided toothpaste in a tube. It was a revolutionary time it got the attention of the masses, unlike any other brand at that time. Later on, the company identified the nerves of the Indian market.
Colgate launched a series of natural and ayurvedic toothpaste in India along with more than 90 other international markets. Indians have always been attached to traditions and values and Ayurveda is the essence of India.
They released Colgate Vedshakti which was made with Ayurvedic Ingredients and was said to be natural. The other great invention of Colgate was when the company released Colgate SlimSoft Charcoal.
It was the first-ever toothbrush In the Indian market that had super slim bristles combined with charcoal. There was no other company than who made charcoal-infused toothbrushes and toothpaste. In such ways, Colgate has always been reflecting its innovations in the Indian market.
Conclusion
Colgate has always been a company that has focused to work on its core products and operations and at the same time lookout for new areas to play. Be it rural India or urban India, Colgate has been one of the prominent leaders in the oral care industry and holds a loyal base across the country.
The company aims to continue this journey by serving its customers with the same passion and creating more awareness about the brand by using many different and new marketing strategies.
FAQs
Is Colgate an Indian company?
Colgate is an American brand founded by William Colgate.
What company owns Colgate?
Colgate-Palmolive Company is the parent company of Colgate.
Is Colgate a Fortune 500 company?
Yes, Colgate-Palmolive is a Fortune 500 company.
How successful is Colgate?
Colgate is a market leader in the toothpaste and toothbrush segment leaving behind the successful competitors.
Who are Colgate’s competitors?
Colgate’s competitors are:
Crest
Sensodyne
Patanjali Dant Kanti
Close up
Pepsodent
Vicco Vajradanti
Why Colgate is the best toothpaste?
Colgate is known for its tooth whitening properties and 12-hour protection that helps fight cavities, prevent gingivitis, reduce plaque, control calculus buildup and fight bad breath.
Which type of advertising is used by Colgate?
Colgate mainly uses a positioning approach based on its competitors. They have positioned their brand image in such a way that customers are bound to buy the product.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by WhiteCub.
Veganism is the way of living with a practice of declining the use of animal productsin diet. It focusses on loving and saving animals and species. Veganism also has the potential to save natural resources like water, forests, grains, and more.
Practicing veganism, one can show love to nature and stay equally healthy as plant-based food items can provide all the required nutrients. Whitecub is a startup in FMCG industry to provide dairy free products. Their intention is to create a harmonious environment where people, animals and nature co-exists.
Read to know about Whitecub, founder, business model, products, and its startup story.
Whitecub is a D2C vegan brand with an Omni channel presence. It is a vegan, dairy free brand and our product offerings includes vegan ice cream, butter, curd, fruit yogurt, cookies, and Hazelnut-Cashew Spread.
Our mission is to make dairy free products accessible across India and take it to the masses. Whitecub want to be the brand of choice for people looking for a dairy free products. Our mission is to make dairy free, plant based products affordable and accessible in India so that everybody can enjoy it. We started with vegan ice-cream back in 2013 and we operate in a niche category currently and want to expand our offering and products to serve all consumers in India. We want to be the vegan brand people trust and opt for. We are also looking at expanding our footprint globally in different markets apart from India. We hope very soon we will be present in other countries via export of our products.
Our long term vision is to create a planet where people, animals and nature co-exists harmoniously. We want to contribute our bit to create a world devoid of exploitation of animals for food. Animal derived food are not only high on carbon footprint but are also often the cause of health complications as well. We are in the middle of a climate crisis and environmentalist are making us aware that we need to act now. White Cub by promoting and making plant based foods accessible to the masses is doing its bit to reduce carbon footprint and contribute towards a better environment. Our vision is to create a future where eating healthy, plant based foods becomes a norm in India and a future where we give animals the respect they deserve and their own space of freedom.
WhiteCub – Industry
We are a D2C brand in the vegan, dairy alternatives industry. We cater to all people who are looking for dairy free or dairy alternative, plant based, healthy products.
Since our inception back in 2013, we have come a long way. In next 5 years we want to be the leader in the vegan, dairy alternatives market by expanding our product portfolio and coming up with more dairy free products like milk, cheese etc. We also plan to expand our offline presence and increase our parlours in cities like Mumbai, Bangalore and other metropolitan cities. We want to take our products to every corner of India through retail chains and parlours. We are also planning to expand our footprints in other markets globally via exports.
WhiteCub – Founder
Sonal – WhiteCub Founder
A health enthusiast, a dedicated vegan, a fierce activist, and an entrepreneur at heart, Sonal is the founder and CEO of WhiteCub – an up-and-coming brand in the F&B industry dedicated to serving vegan alternatives for dairy products.
She holds an MSc in Anthropology and has been working in the vegan industry for more than 10 years. She enjoys cooking, practicing yoga, and reading classics in her free time. She also enjoys gardening and interacting with people. She is an expert cook and possesses wizard-like marketing skills, that have contributed to the growth of her brainchild – WhiteCub.
Sonal and her twins became vegans while they were living in London. She had observed the presence of several dairy and meat alternatives in London’s supermarkets and correspondingly a higher number of vegans there. She could infer that the presence of vegan products encouraged the Londoners to go vegan.
They often used to indulge in the Swedish Glace brand of vegan ice creams while they lived there. On her return to India, though, she found the complete absence of vegan products quite glaring. After all, it was India – a land bathed in dairy milk. As destiny would have it, she took it upon herself to take up the cause of veganism in India by starting a vegan ice cream parlor.
Two factors contributed to it. Firstly, she started indulging in vegan activism in the form of lectures at colleges, presentation of the concept of ‘veganism ‘ at different forums and even volunteering as a vegan coach to assist the few doctors back then who had already started incorporating plant-based diets in the prescription that they gave to their patients.
During this phase, she observed a certain degree of willingness on the part of the masses to adopt a plant-based diet. She noticed that they were willing to give up dairy and meat but only under the conditions of being offered dairy and meat alternatives. The addiction to the taste is biochemical in nature after all and so can’t go away easily.
At this juncture, she started brainstorming with some fellow vegans to start some type of vegan food business. They were willing to donate money to vegetarianism or veganism spreading Not for profit or to an animal shelter but did not consider it wise to invest in a business based on these principles.
Indians were too obsessed with dairy to consider switching to compassionate mylk choices. While Sonal accepted their stance, she remained uncomfortable in this acceptance. She knew she would have to address this issue of a total absence of vegan yummies in the market herself. But ‘how‘ remained a question mark until she got that moment of inspiration.
The family was in Goa on a vacation. They were able to have some vegan ice creams there locally made at a café. They did not have the typical dairy replacements. They were great at a local level but couldn’t have got taken up as a brand. However, this certainly didn’t stop the family from fully enjoying the experience. While they stepped out of the café, Sonal’s eight-year-old son asked whether they can get it in Delhi. This proved to be the spark of sorts for Sonal. What had already been brewing in the background couldn’t be contained any longer. Already, she had encountered hundreds of Indians by then willing to make a switch in the presence of suitable alternatives and now her own little son was questioning her on similar lines.
Before long, she started a vegan ice cream parlor in her city. Ingredient procurements, recipe trials, smaller machines, and then bigger plant purchase – everything followed over a period of a year or so. Then the first parlor opened in 2013.
WhiteCub – Startup Story
Sonal – Founder of WhiteCub
The inspiration for this company has always been the compassion for animals and the care for the environment. Sonal was already a vegan at that point and did some vegan advocacy in terms of lectures, seminars and my association with various organisation.
Her first exposure to vegan products in the form of ice-creams came in my visit to London. Back in India, when she was travelling to Goa with her kids, her son tried vegan ice-cream for the first time and loved it. Her son loved it so much that he asked why can’t they get it in Delhi? It was then that it hit me that India doesn’t’ have a vegan ice-cream brand and she decided to do something about it and decided to start a vegan ice-cream brand.
Sonal did some research on market trends, the ingredients required to make the products and different methods and recipes to make the products. Sonal got her idea validated from her friends and fellow vegans and people who are into healthy eating who became my first customers too. She came up with her own recipe, started experimenting with ingredients at home until she came up with a product that people were delighted with.
Initially, she opened her own parlour with minimal packaging and started delivering to customers directly. Her friends and fellow vegans and neighbours became the first customers and they loved the product. Ingredient procurements, recipe trials, smaller machines, and then bigger plant purchase – everything followed over a period of a year.
WhiteCub – Name, Tagline, and Logo
Whitecub Logo
Whitcub is named for the love and protection of White Lions and their Cubs, as an extension of support for the initiative of Linda Tucker. She has been involved in the protection of white cubs and their families, from the cruel practices of ‘canned hunting’, in East Africa. Thus, all the products carry an emblem of White Cub on Whitecub’s logo.
Whitecub’s Tagline is: ‘Proud to be Dairy Free’ which communicates our USP effectively and how we are proudly marking our footsteps in the industry.
WhiteCub – Products
Whitecub Products
Whitecub products are a vegan, dairy alternatives brand. Its products are completely dairy free. Their products are healthier option for people who are looking for a vegan, dairy alternative products in the market.
WhiteCub – USP
Whitecub Products
All the Whitecub products are dairy Free, Vegan, Trans Fats Free, Palm Oil Free and a healthier choice for people. They started when veganism and plant based products were still relatively a new concept in India. Thus over a period of almost a decade they grew, and today we understand the vegan market in India like no other.
WhiteCub – Business and Revenue Model
We are a D2C brand with an Omni channel presence. We operate through both E-Commerce and Retail chains. We receive the bulk of our order through our official website and have our own delivery network for delivery across Delhi NCR. We are present across major e-commerce channels like Big Basket, Godrej Nature Basket and our retail products are available in major metropolitan cities like Delhi NCR, Mumbai, Pune, Bangalore, Chennai, Kolkata and other metropolitan cities. We also have Zomato and Swiggy as our delivery partner. We also cater for institutional needs like in hotels, marriages, birthday celebration and events.
WhiteCub – Customer Acquisition
We faced a lot of hurdles and challenges in the beginning and it taught us a lot. Initially, I reached out to my friends, community and fellow vegans during potlucks and other activism events. We used to talk about our shared passion for plant based foods, recipes and I used to share samples of our products with them. Once they loved the product, they talked about it to their friend and before long through word of mouth, the demand of our products grew.
Since I was already active in the community, advocating for veganism, White Cub became an extension of that association and helped me to spread the message of the brand through my various association in the initial phase.
WhiteCub – Challenges Faced
Their initial challenge when they were starting the brand was to make people aware and shift to dairy free ice-creams and products. India being a milk loving nation, the idea of dairy free ice-cream or products was relatively new in the Indian market.
With time, the Whitecub team overcame that road block. The biggest challenge was to differentiate themselves in the market:, to find their footing and differentiate their brand from others emerging players and keep the products unique, healthy and delightful that would be loved by the customers.
Another challenge that they faced while developing their Ice Cream was to give it a similar texture and feel in the mouth just as the dairy based products. Instead of dairy we use coconut, soy, and almond milk and so it was initially difficult to give it the same feel as dairy.
Whitecub’s motto is to delight the customer with delicious and healthy vegan offering. So they didn’t use any unhealthy ingredients in their products to give the same feel as dairy which was a challenge. It raised the cost of manufacturing but they didn’t want to compromise on their ethics.
The team conducted local survey in Delhi NCR and Gurgaon and with their customers to rate the products which worked for them. It helped the startup to gather feedback and a lot of data points which eventually helped them to improve the product offerings.
WhiteCub – Competitors
Some of our competitors includes:
Nomou
Vegan Heart
The Vegan Bowl
Papacream
WhiteCub – Recognition and Achievements
Some of the Whitecub achievements are:
White Cub has been awarded with the PETA Vegan Food Awards in 2013 and 2014, two years in a row.
They have been by awarded by the Government of India’s Department of Science & Tech’s Award of excellence.
As a business, they are a proud alumni of Nexus, an Innovation Hub and Business Incubator powered by the US Embassy, ACIR.
They have also appeared in news channels like ‘India Ahead News’ and in various webinars on the topic of entrepreneurship in the vegan foods industry.
Whitecub was featured in ‘Conde Nast’, a French Magazine.
WhiteCub – Future Plans
We plan to keep our present momentum of growth, keep increasing our reach and sales every month and expand our footprints to new markets. Our future plan is to expand our product portfolio to fill the void in the market of dairy-free products. We are working to come up with a dairy free cheese. We are working to come up with dairy free milk that we are confident will revolutionize the market. We are already experimenting with new flavours and will launch soon. The launch of sprinkler parmesan cheese, mozzarella cheese, cheddar cheese and milk are on the anvil.
We also working to open our delivery operations in major metro cities like Bangalore, Mumbai and Kolkata soon. In the future, we want to expand our presence globally and export our products to international markets as well. Our vision is to spread awareness about veganism so that increasingly more number of people opt for vegan dairy alternatives.
FAQs
When was Whitecub founded?
Whitecub was founded in 2013 at Gurugram.
Who is the founder of Whitecub?
Sonal is the founder and CEO of Whitecub.
Are WhiteCub Ice Cream dairy free?
Yes, Whitecub is a dairy free brand. Whitecub ice cream are dairy free.
The Fast-moving-consumer-goods (FMCG) is quite an established market. These industries have always proven themselves worthy of the consumers’ purchasing and reliable choice. When looking a little back in time, FMCG was considered wrong for entering the business industries. However, with time, many young businessmen or entrepreneurs put their foot in the direct interaction with consumers regarding the product, and shockingly, it received great acknowledgments and achievements. This came out to be the FMCG business model.
This kind of business model interacts directly with the consumers by cutting out the retail and charging at wholesale rates. This also supports and helps the FMCG players with the opportunity to establish their position in the market. With the FMCG business model, different categories are discovered and some great innovative types of business models. FMCG industries work mainly on the e-commerce platform.
Looking at these facts, it’s likely to say that the FMCG industries possess great kinds of business models and promote innovative contemplation. Through this article, we would explain to you how FMCG industries make money along with some distinct business models.
FMCG means Fast-Moving consumer goods. The direct-to-consumer business encompasses highly demanding products, sells rapidly, and comes at a very reasonable price. These are also known as Consumer packaged goods (CPG). The products in these industries are very fast-moving as they are convenient to deliver and sell very quickly from the stores and supermarkets because of the daily usage in our life.
The FMCG industry includes some of the biggest brands worldwide. Such as Nestlé, PepsiCo, JBS, Procter & Gamble, Coca-Cola, Unilever, and many more. It’s always advantageous to work in this industry as it brings out great career opportunities.
FMCG industries reached up to US$ 52.75 billion in FY18 and by the time of 2020, it rose to US$ 103.7 billion. With the sector of food items, hygiene, rural areas and health; the FMCG industries have grown with a 7.1% increase in the last 2 months of 2020.
When the product demands increase in the rural sector, it brings out a great revenue rate for the FMCG industry. The rural area contributes around 36% pg total FMCG industry spendings. As the government also put huge effort into the hygiene and health of the rural regions, the FMCG industry gained up to 10.6% of growth recovery.
The government initiatives for the low unemployment rate, high agricultural produce, and reverse migration for the advancement of the rural areas. When such initiatives are taken, the FMCG industry gains a great amount of profit in hand.
Growth of FMCG Market size in India
FMCG Business Model
Let’s take a brief look at some of the data-driven business models of FMCG Industries.
Premium Service Model
Premium Service Model offers great consumer services. It provides a premium fee that is linked for the customers to sign up. It possesses substantial benefits and encourages the customers to sign up.
Through the increase in business insights, the retailers gain the incremental revenue that targets the customers more consistently and brings functioning modifications to them. Premium Service Model promotes customers loyalty, enhances sales, and has the average basket size.
Differentiator Service Model
Differentiator Service Model offers some very heightened benefits to the customers and also offers the chance to purchase the same times again. Moreover, it gives rewards that boost up the purchasing tendency.
Differentiator Service Model guarantees good customer loyalty and increases the basket size by purchasing the same items again and again. The retailer, however, gets access to the minute customer’s data such as the email, contact details, history, and many others.
Return on Advantage Model
Return on Advantage Model also referred to as the Competitive Advantage Model focuses on driving the business insights for the growth of new products by combining the internal transactional data with the third party data. This also targets the experiences between the online and offline platforms and for better customer segmentation.
This business model targets customer segmentation to enhance its capabilities. Through this, the purchasing patterns are identified and assembled to gain a better possibility of targeting the customers.
FMCG Industries has built a significant position in the market with its advanced product awareness strategies and customer loyalty. Here are some of the marketing strategies of the FMCG Industry.
Multiple Branding
In FMCG marketing, Multiple Branding is one of the most fascinating techniques to hold up the potential customers and strong market position. In this technique, the company creates fair competition among the same brand product categories.
Product line Building
Product line Building offers a wide range of variety to the customers based on their choices by altering the names. A company manufactures the same product with different needs of customers and sells them accordingly. However, there isn’t any specific competition between such products as the target audience for each is distinct.
Huge Distribution Network
A huge Distribution Network is one of the very essential marketing strategies based on significant locations. This helps the product to reach every corner to gather its potential customers.
New Products Development
The company often modifies its products and then removes the old inconsistent ones. This helps them to maintain the competition and standards in the market. In this strategy, the company kept on researching and developing new features in their existing products. After modifying the product according to the consumer’s needs, they replace the older ones with these.
Flanking
Flanking is one of the very interesting FMCG marketing strategies. It sells the same product in different volumes and packaging. This helps the consumer to stick by the brand and purchase the product according to their favorable need. This brings a good option and probability for consumers to purchase the product.
Brand Extension
Normally when a company has made its strong position in marketing, to keep it consistent the company manufactures more products with the same name but different features, to gain massive sales. Brand Extension strategy is very essential as it brings more value to the brand and reaches the target audience quickly.
Conclusion
The Fast-moving consumer goods (FMCG) industry possesses some very strong brand holding in the market. With its incredible strategies and plans, it brings out great reliable growth development. FMCG industries are one of the most advanced and popular industries. It calls out a different business model to gain the required upholding with its consumers. FMCG industries include some of the very prominent brands worldwide that prove their success in the marketing field.
FAQ
What is the biggest FMCG company?
Switzerland’s Nestlé is the world’s largest fast-moving consumer goods company, followed by two US giants: Procter & Gamble and PepsiCo.
Which FMCG is the best?
Some of the top FMCG companies are Hindustan Unilever Limited (HUL), Colgate-Palmolive, ITC Limited, Nestlé, Parle Agro, Britannia Industries Limited, Marico Limited and Procter and Gamble.
How do FMCG companies work?
In the FMCG industry, manufacturers often sell the goods to wholesalers, who sell them to the retailers, who in turn sell them to the consumers. This is a two-level channel.
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.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Kapiva.
Ayurveda is regarded as the oldest of the sciences, which focuses on healing our bodies and minds. The healing science, Ayurveda translates to “The Science of Life” in Sanskrit, the knowledge of which originated in India dating back to around 5000 years ago.
Also known as the “Mother of All Healing”, Ayurveda stems from the ancient Vedic culture when it was taught in the oral form in a Gurukul tradition by accomplished masters to their disciples who lived at their residence. In fact, many of the alternative medicinal sciences and therapies like homeopathy and polarity therapy are believed to have their roots in the ancient Ayurvedic principles.
Ayurveda is a complex form of alternative medicine that includes “panchakarma” or five actions, yoga, massage, acupuncture, and herbal medicine for the health and well-being of the body and mind.
Though much of the Ayurvedic knowledge of the past has been buried with it, some of them managed to be scripted and percolated to the present generation. Kapiva is one such brand that holds on to the ancient principles of Ayurveda and tweaks them to fit modern lives. The Modern Ayurvedic Nutrition Brand is based on the holistic approach to wellness and not just a curative science.
Read on to know the full story of about Kapiva, its Founders, How was Kapiva Started, Name, Logo and Tagline, Vision and Mission, Products and Services, Target Market Size, Business and Revenue Model, Startup Launch, Customers/Clients, Challenges, Investors and Funding and more.
Kapiva: Company Highlights
Company Name
Kapiva
Founders
Ameve Sharma & Shrey Badhani
Sector
FMCG
Founded
2016
Registered Entity Name
Adret Retail Pvt Ltd.
Website
kapiva.in
Kapiva: Latest News
October 27, 2021 – Malaika Arora backs Kapiva. The Bollywood actress will be joining as a strategic investor, brand ambassador, and ‘wellness mentor’ at the Kapiva Academy of Ayurveda.
Kapiva can be regarded as the “India’s 1st Modern Ayurvedic Nutrition Brand” that offers food-based innovations to help build healthier lifestyles for the Indians. With the rich legacy of Baidyanath, Kapiva acquired the knowledge and the authority to amalgamate traditional Ayurveda with the modern forms of nutrition.
Kapiva is derived from the three doshas in the Ayurvedic universe – Kapha, Pitta, Vata, which when balanced in a body, bring overall wellness. As mentioned earlier, the brand is established on the belief that Ayurveda is a holistic approach to wellness and not just a curative science.
The Ayurveda-inspired nutrition brand brings a range of organic fruits, vegetables, and other food products to improve the lifestyle of the present generation. The company also brings diversified solutions including daily wellness, men’s health, weight loss, digestion, diabetes, skincare, blood pressure, strength, destress and memory boosting, artho care, kidney stone, and more. In addition, Kapiva never fails to innovate its products to bring this traditional ayurvedic wisdom to consumers in modern, easy-to-use formats, along with delivering them with good nutritional value.
Kapiva Ayurveda
Kapiva: Founders
Kapiva is founded by Ameve Sharma and Shrey Badhani.
Kapiva Founders | Shrey Badhani and Ameve Sharma (L-R)
They joined hands in January 2016 to build the world of modern Ayurvedic brand, Kapiva.
Ameve Sharma grew up in Kolkata and belongs to the family, which founded the famous Baidyanath Group. His grandfather was the founder of Baidyanath and his father still stands as the current Managing Director of the ayurvedic pharmaceutical company. Ameve is the Chairman of the Western region at the Indian Chamber of Commerce and the President of the Baidyanath Group. He has also worked as a Consultant with McKinsey & Company after completing his MBA. He completed his Bachelors in Economics from New York University and went ahead to pursue MBA from INSEAD.
Shrey Badhani is an adept and experienced sales and marketing professional. He has been instrumental in driving growth and implementing strategic management at Kapiva. Shrey looks after the e-commerce platform, offline sales, marketing and operations for Kapiva. He started his career in Consulting with Bain & Co and Parthenon. Most recently, he worked as a PE investor with Bain Capital in their India office. Shrey pursued Bachelors in Economics and History from St. Xavier’s College, Mumbai and Masters in Economics from the University of Cambridge.
Kapiva has a talented team that bring a varied sense of experience to the table. From reputed business school graduates and experienced senior professionals to college freshers and hardworking amateurs, employees at Kapiva come from various walks of life and add value to the overall success of the company. This eclectic bunch brings the much-needed diversity in perception, having a positive impact on major business decisions.
Kapiva Apprenticeship Programme, where the seniors and experienced staff mentor juniors and help them gain valuable business insights. This has helped the employees gain a cohesive professional experience at a very young age.
Ayurveda has always been at the heart of the Indian tradition. However, somewhere along the way the true essence of it had been lost. People approached Ayurveda with a curative lens but it is in fact, a way of life! It relies on the principle of ‘food is medicine’ and ‘you are what you eat’. Western countries have begun understanding the true value of ayurvedic sciences and the industry is booming rapidly overseas. With the advent of turmeric lattes, moringa cereals, and more, other countries seem to appreciate our traditions more than we do!
One of the major reasons why Ayurveda does not fare well in India is due to the lack of awareness about its benefits and values among the millennial population. Considering that India has one of the largest Gen Y population of the world, we are actually not catering to almost 34% of the total Indian population. To combat this, Kapiva has anchored on creating this awareness among the millennials and securing a modern ayurvedic nutrition stance to educate that section of consumers.
All products of Kapiva are created keeping the busy and on-the-go lifestyle of modern-day Indians, who seek to maintain an upkeep of their health in easy to use and convenient options without having to compromise on taste.
For instance, Kapiva Gummies are designed for on-the-go nutrition with the power of Ayurvedic herbs in a yummy-gummy format, which is convenient as well as a joy to consume!
Kapiva’s logo is interestingly designed in black and white where the starting letter of the brand, “K” stands in an enlarged version with the brand name “Kapiva” written inside it.
Kapiva | Name, Logo and Tagline
Kapiva rests on a core philosophy, “Your simple guide to everyday Ayurveda”. The name Kapiva is derived from the three doshas in the Ayurvedic universe – Kapha, Pitta, Vata, which when balanced in a body, bring overall wellness.
The founders believed in this balanced approach to health using Ayurveda, and the company is well poised to achieve its growth objective as consumers begin to adopt this philosophy by proactively seeking better nutrition. In addition to core Ayurveda, the various product innovations add further value to consumers, making Kapiva a preferred brand for modern wellness.
Kapiva: Vision and Mission
Kapiva’s mission is to provide a new-age Ayurveda for the new-age customers. Furthermore, the company wants to free Ayurveda of its complexities and enable millenials to make it a part of their everyday life, live a holistic lifestyle.
Kapiva’s vision is to not only provide Ayurveda-based nutrition products, but also bring balance into the lives of the customers through these products.
Kapiva: Products and Services
Kapiva stands for modern ayurvedic nutrition. They have been able to disrupt the traditional ayurvedic industry, by presenting the benefits of Ayurveda to the modern lives of the Indians in easily accessible and convenient forms. With the backing of an Ayurveda-inspired innovation, Kapiva has access to the best suppliers of natural ingredients in the country and has built a very strong sourcing story for all its natural products. In addition, the founders’ exposure to various markets during their earlier experiences, has helped them understand the modern consumer’s needs very well.
Kapiva is designed for a fast-paced 21st-century lifestyle, especially where the lack of the right nutrition and inadequate immunity can pose serious health risks. The company has created a new category of modern ayurvedic nutrition, which never existed before, addressing the core consumer needs of health and taste.
For example, Kapiva Wild Amla Juice is made from ripe, yellow Amlas as they are more nutritious compared to the commonly used raw, green amlas. Furthermore, the juices are cold-pressed to retain all their nutritional content. All the products share such unique sourcing stories. The company’s fast growth trajectory is a result of the innovation in product development by bringing better quality, more convenient products to the consumer.
Kapiva invests in R&D and innovates on sourcing better ingredients, convenient product formats, and consumer-friendly packaging, to deliver more value to the consumer. The company has developed a top-of-the-line and robust R&D setup in-house, while working with top food technology experts of the country, such as the former heads of R&D at companies like Britannia and HUL, to build best-in-class products ranges. Kapiva remains focused on innovating on more accessible nutrition, under the realm of Ayurveda. The purity and quality in the sourcing of ingredients have been given center stage.
Kapiva | Product Review
Kapiva: Target Market Size
Ayurveda is a ₹30,000-crore industry in India. As per 2020’s estimates, Kapiva is expected to cross ₹300 crores in revenue by 2025 and capture a significant part of this market. Kapiva’s market largely revolves around the Indian subcontinent, with a wide reach. Indians are believers in the power of Ayurveda and the modern Indian consumer is looking for a more accessible and convenient format of Ayurveda to consume its benefits. Kapiva has witnessed expansion abroad and is currently operating in the US, planning to expand to Canada and the European markets in the coming months.
Today, Kapiva has a portfolio of 50+ products and is present across the top online marketplaces (Amazon, Flipkart, Big Basket, PharmEasy, to name a few) as well as its own website (direct-to-consumer business model). The products are also available in 6000+ General Trade and Modern Trade outlets in the top cities of India.
Kapiva: Growth
Pre-COVID, the ayurvedic market typically witnessed 15-20% growth annually. Contrary to this, in the last quarter, many companies, large and small, witnessed growth between 50-90%. The adoption of Ayurveda as holistic, natural healthcare will have a positive impact on the market. Not just in India, the developing economic conditions of various nations are elevating the demand for Ayurvedic products globally. Ayurveda was considered a pharmaceutical approach earlier and was only used as a solution to specific problems. However, Ayurveda is actually about proactive, holistic health, and consumers are embracing it as such, now.
People around the world today, are focusing more on herbal products and leveraging herbal remedies to enhance their mental and physical health and wellbeing. The global Ayurvedic market was valued at Rs 300 billion in 2018 and is estimated to reach Rs 710.87 billion by 2024, as per Global Newswire. All of these are directly helping Kapiva to scale greater heights.
The company has grown to be a Rs 50 crore brand in just 3 years. Yes, Kapiva has witnessed a growth of Rs 0 – Rs 50 crore in revenue in less than 3 years. Some other growth highlights of Kapiva are as follows:
Kapiva currently boasts of having over 6,000 general trade outlets across 12 Indian cities and has been looking to expand it to 10,000+ outlets.
It has witnessed around 10x growth in the span of the last 30 months
It has launched 50+ products in 5 categories in 2020.
Kapiva: Business and Revenue Model
Kapiva follows a D2C strategy of business to deliver a true omni-channel experience of FMCG sales. The consumers of Kapiva’s products are typically in their mid-20’s to late 40’s, residing in Metros, Tier 1, and Tier 2 cities.
Kapiva has enjoyed a natural product-market fit, especially leading in certain categories such as Herbal Juices. The current strategy is to expand the footprint across channels, especially through marketing and new product development, both of which are being undertaken with a keen eye on consumer preferences. Customer focus determines the way forward for Kapiva.
Having its genesis as an offline brand, Kapiva had already enjoyed quite a success in the offline markets, which helped the company earn a turnover of about Rs. 3 crore a month in the first eighteen months or so. The company started focusing on online distribution from 2019 onwards. Therefore, it is the offline success that helped the company rapidly scale the online markets.
Today, along with its own D2C platform, Kapiva retails on all the prominent online marketplaces, from Amazon and Flipkart to Big Basket and Nykaa.
A major chunk of the company’s revenues comes from its digital channels. Furthermore, the products of Kapiva are also available across General Trade and Modern Trade outlets in the top cities of India, which also helps the company earn a considerable amount of revenue.
The company began by making its mark on online marketplaces such as Amazon. The herbal juices category was underrepresented on these platforms then, but the need was definitely present, as was the natural product-market fit. Kapiva capitalized on it and thus acquired the first batch of loyal users.
Kapiva: Customers/ Clients
Kapiva focuses very heavily on the right product positioning within a category, by taking great efforts to carve out compelling differentiators of the product before its launch. In addition, their strong go-to-market strategy helps with accelerated results as soon as they enter a category. However, above all, the company believes that it is the quality of their products which customers appreciate and call out the most, leading to better retention and word-of-mouth marketing.
Though the popularity of Baidyanath, which runs through the veins of Kapiva, helped the brand initially but standing as an Ayurvedic brand in a country dominated by allopathy is itself a laudable feat.
Kapiva initially started off as a chain of Ayurvedic clinics, through which high-quality products were sold as well. Pivoting from that clinic/retail model to the current FMCG model was also a challenge.
Fireside Ventures, Mohandas Pai Family Office, Marico Family Office (Sharrp Ventures)
April 2020
Series A1
INR 13.5 Crores
Jetty Ventures, Fireside Ventures, Marico Family Office (Sharrp Ventures)
Kapiva: Advisors and Mentors
Kapiva enjoys the mentorship of various experienced investors. The Baidyanath connection forms a valuable advisory channel as well.
Kapiva: Competitors
Kapiva competed with Patanjali, Dabur, Himalaya.
Kapiva: Recognition and Achievements
Kapiva has been awarded The Economic Times Emerging Consumer Brandof the Year 2020. Apart from that, the co-founders of Kapiva, Ameve Sharma and Shrey Badhani have been awarded Emerging Entrepreneurs of Year Awards in the Product or Manufacturing- Healthcare category.
Kapiva has grown from 0 to 50 crores in less than 3 years. It has scaled rapidly with over 3x increase in monthly revenue from March 2019 to March 2020. The company is expected to close FY21 with revenue run-rate of Rs 70 Crores per annum. Given the strong growth trajectory, Kapiva is all set for profitability within the next 2 years. Since launch, Kapiva has served more than a million consumers and is seeing good traction in, both, Indian and international markets.
The future plans for Kapiva are as follows:
1) Innovation through new product development. Kapiva’s range of immunity products is expected to expand soon, followed by products such as ayurvedic breakfast and ayurvedic effervescent drinks, which will cater to customers’ taste preferences, while being healthy.
2) Expanding the distribution network offline and scaling up the direct-to-consumer channel. Kapiva is currently present in 6,000+ general trade outlets across 12 cities. This is set to expand 10,000+ outlets and cover more cities by the end of this financial year. The direct-to-consumer channel has had a great growth story too – it grew about 20x in revenue in less than a year. It is expected that this strategic channel will grow another 5x this year.
3) Building their brand communication to share their story of modern ayurvedic nutrition. They are focussing on digital channels at the moment, since their customer base is largely present here.
Roshni Tamta
