PATANJALI: A disruptor in Indian FMCG

Abstract

Patanjali Ayurved Limited through its retail operations since 2012 has been able to create a niche positioning for itself through the last 4 years. The growth projections to reach 10,000 crores by 2017 and 20,000 crore by 2020 is providing sufficient headache to big players of Indian FMCG market. However to grow at such rapid pace, they need to significantly invest in their distribution network and set up production facilities. Secondly, the quality of product manufactured by them or through their partners is continuously at the radar of many organisations. Thirdly, the overdependence of the brand on Baba Ramdev could be an issue for the coming years if Baba gets into some controversy or the present government is out of power. Patanjali is also entering into unrelated diversification segments such as Jeans, maintenance of sustainability in future could be a challenge in future. Having said that they have been able to create a new market for Ayurvedic products in Indian FMCG market which is clearly visible through the competitor’s reaction. We conclude that it’s a disruption as even if Patanjali as a brand could fail in future, but the new market created gives an opportunity to any player to take the organic Ayurvedic segment.