Yoga guru, Baba Ramdev’s Patanjali Ayurved Ltd (PAL), which
started as a small pharmacy, is now a serious contender in the FMCG race, with
its revenue increasing at a CAGR of 65.7% during FY’2010-FY’2015, as per a
report by market research fi rm, Ken
Research.
“PAL’s competitors have received its entry in good health as
they believe that the revival of their ‘Herbal Trend’ could help them reap
higher profi ts by increasing sales in this segment. Competing brands have
expressed that their products will not compete with PAL as the latter has
helped in expanding the market,” says Supriya Goel, Director, Research and
Operations, Ken Research.
PAL has expanded to sell the full range of consumer
categories, from edible oils, biscuits and noodles to toothpaste, hair and skin
care products, groceries and even detergent. The fi rm has 3 manufacturing
plants located in Haridwar for production and sale of products, as well as, a
network of 1,78,000 retail outlets across the country. With an estimated
customer base in the neighbourhood 70 mn people, PAL’s product lines have been
devised to appeal to both rural and urban populations.
The company’s current revenue represents only the tip of the
iceberg, as Patanjali’s products are only reaching 0.2 mn kirana
(mom and pop grocery store) stores, whereas 90% of FMCG products are sold
through kirana stores across the country. Having laid a strong foundation in
FMCG, PAL is now geared to hoist its fl ag in other natural subsegments.
The company intends to sell liquid milk and is focusing on
six sectors—natural medicine, natural food, natural cosmetics, dairy products,
cattle feed and natural manure. The company intends to reach a target of Rs
10,000 crore by 2017.
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