Patanjali Ayurveda Limited

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About this sample


Words: 677 |

Page: 1|

4 min read

Published: Dec 5, 2018

Words: 677|Page: 1|4 min read

Published: Dec 5, 2018

Today I am gonna write about an organisation which is enjoying great success from last 10-15 years and till now the organisation is moving towards a greater success with continuous expansion of its business and its turnover and the organization which I am talking about is “patanjali”.

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Patanjali Ayurveda Limited is an Indian FMCG company. Its manufacturing units and headquarters are located in the industrial area of Haridwar (uttarakhand) while the registered office is located at Delhi. The company manufactures mineral and herbal products. It also has manufacturing units in Nepal under the trademark Nepal (Gramudhyog) and imports majority of herbs in India from Himalayas of Nepal. According to CLSA and HSBC, Patanjali is the fastest growing FMCG Company in India. It is valued at ?30 billion (US$470 million) and some predict revenues of ?5,000 crore (US$780 million) for the fiscal 2015–16. Patanjali declared its annual turnover of the year 2016-17 to be estimated ?10,216 crore (US$1.6 billion).

The major factor for success of patanjali is baba ramdev because people trust them, he has the convincing power to convince people for accepting Ayurveda and people also see the results own their own on using the patanjali products but there are some other factors for success of patanjali in which six major factors are:

  1. Media attention
  2. Ramdev rose to national fame as a yoga guru through his programmes on TV channels like Sanskar in 2001 and Aastha from 2003. He readily acknowledges the role of the media in his rise. “My own role in the rise of Patanjali is just one to 10 percent, the rest of the credit goes to the media”. He told this to business today website.

  3. Smart pricing
  4. The main reason for Patanjali's success is the thrift it practices. "Our profit margins are miniscule because the main aim is not to make profit," said Ramdev. In patanjali input costs are low because they source directly from farmers, avoiding middlemen. “There is no one in Patanjali Company who is paid crores as salary” said by baba ramdev, he also said that “Most companies have administrative costs of around 10 per cent of their revenue, but in our case it is just two per cent."

  5. Retail outlets
  6. Initially, Patanjali didn’t accept the conventional distribution network, preferring to rely on its own channels of super distributors, Chikitsalayas (franchise dispensaries) and Arogya Kendra’s (health centres which sell Ayurveda remedies). Once it turned to retail outlets from 2011, revenue began to multiply manifold.

  7. Variety of products
  8. Already, a few Patanjali products have made major inroads - apart from desi ghee, its toothpaste Dant Kanti, shampoo kesh kanti for instance, launched in March 2010, brought in revenues of Rs 200 crore in 2014/15. Patanjali has also ventured out to produce many other new items that were mostly produced by foreign companies in recent months. Patanjali also sells toothpastes, unpolished pulses and detergents, moisturisers, beauty creams, chayavanprash, chocolates.

  9. Swadeshi factor
  10. Patanjali is happy to co-exist with indigenous companies, multinational ones are a different matter. "We have a simple principle: we want to replace MNCs," said Ramdev. "We don't want to put anyone down, but we would like to instil swadeshi pride so that Indian money does not go out of the country." He is aware that the competition is gunning for him.
    "The MNC mindset is such that whenever an Indian does anything, MNCs think we are competing with them," he said. "MNCs are creating special war rooms to combat Patanjali. We are not into any such war rooms. We don't analyse other companies' strategies or conduct market surveys and feasibility studies. It is only when people ask for cheap and healthy options that we try to respond."

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  11. Advertising
  12. Patanjali's own advertising was limited in the past, but has increased considerably of late, with ads appearing on general entertainment TV channels such as Star, Zee, Sanskar, Aastha, Sony and they also provide funds to many. The company has also reached out to regional Southern channels and the major thing is that Patanjali do not spend so much in advertising by hiring other actors for advertisement.

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Dr. Oliver Johnson

Cite this Essay

Patanjali Ayurveda Limited. (2018, December 03). GradesFixer. Retrieved July 18, 2024, from
“Patanjali Ayurveda Limited.” GradesFixer, 03 Dec. 2018,
Patanjali Ayurveda Limited. [online]. Available at: <> [Accessed 18 Jul. 2024].
Patanjali Ayurveda Limited [Internet]. GradesFixer. 2018 Dec 03 [cited 2024 Jul 18]. Available from:
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