With major thrust of Indian government on promoting AYUSH (Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy) industry and even private players making huge investments in the segment, the future of the industry looks brilliant.
We take a look on how the AYUSH market is growing and spreading smiles on the faces of both entrepreneurs and consumers not just in India but around the globe.
India's wellness market is estimated at Rs 490 billion, and wellness services alone comprise 40 per cent of the market. The AYUSH sector has an annual turnover of around Rs 120 billion and is dominated by micro, small and medium enterprises, accounting for more than 80 per cent of the enterprises, located in identifiable geographical clusters, so states Make in India website of the government.
“Today, AYUSH industry is poised at Rs 147 billion and if appropriate spotlight and thrust is given, it will grow further. This will improve the availability of skilled manpower in the traditional medicine industry, because there will be good job opportunities and prospects for career growth. If the government and other agencies, including the private sector, up the ante of entrepreneurship in the country, it will automatically promote alternative systems of medicines AYUSH,” says Kiran Joshi, Franchise Head, Dr Batra's Positive Health Clinic Pvt Ltd.
Gita Ramesh, Joint Managing Director, Kairali Ayurvedic Group, which manufactures and retails Ayurveda products and has Ayurveda spa/massage centres, is also upbeat about the market. “Ayurvedic market is growing at a very steady rate, and also the encouragement from ministry is growing strong and it's being highlighted,” she adds.
The extent of the present NDA government's interest in promoting indigenous practices can be gauged from the fact that it has made a separate AYUSH ministry in November last year for laying special focus on the industry. Earlier, AYUSH sector used to be a part of the health ministry. This new ministry will focus on upgradation of AYUSH educational standards, quality control and standardisation of drugs, improving the availability of medicinal plant material, research and development and awareness generation about the efficacy of the system domestically and internationally.
Besides this, the government is planning to open All India Institute of Medical Sciences (AIIMS) like institutes for Ayurveda. It has already approved for establishment of an All India Institute of Ayurveda at Sarita Vihar, New Delhi, for imparting education in the field of Ayurveda at MD and Ph.D level.
Prime Minister Narendra Modi, who is known to start his day with a Yoga session, already has his way as the United Nations declared June 21 as 'International Day of Yoga' on his call. This will create awareness about Yoga and will throw many opportunities for the whole AYUSH industry across the globe.
“The new thrust on preserving and promoting AYUSH is expected to lead to a huge boom in the traditional medicine sector. That the government recently elevated the erstwhile department of AYUSH to a full-fledged ministry is a welcome move an idea whose time had come. This will not only help increase the global and local footprint of the traditional systems of healthcare, but also duly recognise that our villages have been the repositories of our rich Ayurvedic heritage. National AYUSH Mission will also promote cost-effective AYUSH services, strengthen the education system and facilitate availability of quality AYUSH medicines,” feels Joshi.
Hailing the PM's initiatives, Gita Ramesh, adds to it, “With the positive mention of Ayurveda in Narendra Modi ji’s speeches and the simultaneous action in the ministry, we are hoping the focus should be on increasing international arrivals in terms of medical tourism through alternative therapies like Ayurveda.”
Booming AYUSH players
While the government has gone out all out to support and encourage the traditional Indian forms of physical, mental and spiritual practices, on the other side Indian companies in this segment like Patanjali Yogpith, Dr Batra's and many others have already set the market abuzz. According to recent reports, Baba Ramdev's Patanjali Ayurved, the company that manufactures the products is expected to clock a turnover of Rs 2,000 crore in the current fiscal. For fiscal 2014, it clocked a turnover of about Rs 1,200 crore, up from about Rs 850 crore a year earlier and Rs 450 crore in fiscal 2012.
“We have 17000 Patanjali Swadeshi Kendra and Patanjali Ayurvedic Chikitsalaya in different villages, tehsils, districts and cities across India. Of the total count, 5000 of them are franchise-run centres. We aim to reach more than one lakh locations in the near future,” states Pankaj, Department Head, India, Swadeshi Vibhag.
Likewise, Dr Batra's Positive Health Clinic Pvt Ltd, a big name in Homeopathy, has risen from a single clinic to over 172 clinics across 90 cities in India, the UAE and the UK. “We plan to open 100 franchise clinics by 2016-17 in tier II, III and IV cities,” says Kiran Joshi.
Other than this, several other new AYUSH players are coming in and those already in the market are expanding their ventures and pumping in more investment in view of present industry scenario in the country.
AYUSH via franchise way
Franchise is a hot word for the AYUSH industry as it is growing fast not only in India but in foreign countries too. To spread its footprint across the length and breadth of the country, the brands are finding franchise route the best business model for expansion.
“If you talk of Patanjali, people are coming forward to be its franchisees because besides getting a hassle-free employment, they are also feeling satisfied internally by curing people's diseases and taking India's rich and old practices to the masses. Also, they need not cheat customers or tall talk about products because everybody knows about the benefits of the age-old Ayurveda,” Pankaj tells Franchise India.
On providing opportunities via franchise mode to the entrepreneurs, Kiran Joshi, says, “Business models are being created for people with low disposable income, coupled with the use of technology. This will ensure that AYUSH reaches out to the remotest corner of the country and also provide exciting opportunities for players who are willing to invest and grow in the sunrise wellness industry for the good of everyone's health and the country's health too.”
Along with many opportunities for the sector, there lie challenges as well with lack of trained people, AYUSH institutes and multi-speciality hospitals in India. The industry and the government have to do more much more to be the next big thing.
“The primary challenge for Ayurvedic and homeopathic medicines is that there are no major, multi-speciality hospitals and round-the-clock doctors available to recommend the right treatment. Whereas in regard with franchise business model, finding the right partner to represent your brand in tier II, III markets is a big challenge. People want to associate with the brand but do not understand the brand values which they have to adhere to or replicate once they become a partner,” shares Dr Batra’s Franchise Head.
Therefore, entrepreneurs have huge opportunities in the AYUSH sector to make healthy profits and turning people healthy too.
-AYUSH sector has an annual turnover of around Rs 120 billion, MSME dominates with than 80% of the
-India’s wellness market is estimated at Rs 490 billion, and wellness services alone comprise 40%
of the market.
-AYUSH ministry was allotted Rs 1,214 crore in the union budget.
-India is the second largest exporter of AYUSH and herbal products.