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Patanjali 2016-02-17

Patanjali grows beyond expectation and craves for more

By Sandeep Rana, TFW Bureau Senior Copy Editor

After reaching unexpected turnover last fiscal, Baba Ramdev’s Patanjali Ayurved Ltd has set an ambitious target for the coming 2016-17 fiscal as well. We here find out how this fast moving consumer goods (FMCG) brand is doing and what are yoga guru's offerings for franchisees.

In the last fiscal of FY15, the newbie FMCG player touched the turnover of around Rs 2,000 crore and took the market by storm. Patanjali continues to raise eyebrows in the segment with it expecting around Rs 5,000 crore turnover in the soon to be finished financial year of 2015-16. If that is not enough, the brand is targeting a turnover of Rs 10,000 crore in the fiscal year of 2016-17.

“We are hopeful of touching 5,000 crore turnover in the present financial year. While for the coming year of 2016-17, we aim at Rs 10,000 crore turnover. And we believe, with the kind of response we are getting from the people and the way our advertising campaign is going on, we are hopeful of meeting our target,” Pankaj, Pan-India Department Head, Swadeshi Vibhag, tells Franchise India.

Indeed, the brand, which was earlier solely operating through by a word of mouth, has become India's biggest FMCG advertiser. As per a report, for the seven days to January 29, TV commercials (TVCs) of products under the Patanjali brand outnumbered those from big consumer goods players like Cadbury, Parle and Pond's. So says the data from Broadcast Audience Research Council (BARC), the joint industry body that compiles and publishes TV viewing data.

The native brand has already set aside more than Rs 300 crore for advertising and promotion, and is set to step up its publicity campaign further.

Patanjali has also enhanced its presence. Its products are available at standalone stores as well as at modern retail format stores- Big Bazaar, Reliance Retail, Spencer's Retail, HyperCITY and SRS Retail. They are also sold at Patanjali's Swadeshi Kendras, Arogya Kendras and its online store. It is giving a stiff competition to leading brands- Colgate-Palmolive, Nestle, Dabur and HUL- with its wide array of products including Dant Kanti toothpaste, Kesh Kanti shampoo, toothbrush, atta noodles, tea, jam, corn flakes, spices, pulses, chyawanprash and beauty products.

Patanjali franchise

Not only the indigenous company’s products have become an instant hit with the consumers but also Patajali franchise model has struck a chord with the people. Since the brand offers its franchise pan-India, people in rural as well as urban areas are enthusiastically taking its franchise.

“Other than curing people at our centres, we are also throwing franchise opportunities for entrepreneurs. People have started to experience the benefits of the brand and are getting cured from various ailments and problems. This is making them opt for Patanjali. We look forward to open 1,000 stores by March,” adds the ayurvedic brand’s spokesperson.

Other than smaller towns and rural areas, the brand has also launched 12 mega stores in metro cities. The company plans to open 100 more mega stores in the near future. This segment of store requires an investment of around Rs 50-70 lakh and about 2,000 sq ft area. The brand is mainly focussing on expanding via the franchise mode.

Franchise facts:

Area Investment RoI Breakeven Total centres Expansion plan
Around 300 to 2,000 sq.ft Around Rs 7 -70 lakh More than 10 % 3 months 4,200 stores 1,000 stores by March
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