Here’s Why Baba Ramdev’s 200 Crore Empire Is Making Corporate India Uncomfortable


Yes, 200 crore. That’s not what you expect from a guy who doesn’t wear a shirt, no matter where he goes.  Baba Ramdev’s Patanjali Ayurved is still making people in the air conditioned offices of multi-national FMCGs sweat. Here’s why.The profit is scaling up – massively.toiJust look at the turnover numbers. It’s the kind of business trajectory you’d expect from Bruce Wayne.2012: Rs 450 crore2014: turnover of about Rs 1,200 crore2013: Rs 850 crore2015: Expected to jump to about Rs 2,000 crore. That’s a 67% jump from last year.That means literally swagging in front of Emami (Rs 1,700 crore), and reaching the halfway milestone of Marico (about Rs 4,000 crore).They’ve taken over every FMCG category.flickrYou name it, they’re in it. Soaps, shampoos, dental care, balms, skin creams, biscuits, ghee, juices, honey, atta, mustard oil, masala, sugar…it goes on and on.

The company doesn’t spend on heavy advertising.

With a ready-made celebrity, they don’t need to spend on ads as much as competitors. It’s hard to remember a Patanaji ad. And the products are cheaper, making them even more appealing. FMCG biggies spend up to 20-30% of sales earnings on ads.Franchises, baby.annadanieladventureRamdev’s Patanjali shops are everywhere. From 150-200 dedicated outlets in 2012, to 20 times that in 2015 (yes, there’re 4,000 stores selling his stuff), he’s taken over aam-aadmi retail. And it’s not only the aam-aadmi that’s buying it.saffronstreaks After Baba Ramdev managed to crack an exclusive kiosk deal with Reliance, there’s been no turning back. “We initially piloted (Patanjali products) in five Reliance Retail stores in Mumbai and then took it to 45 stores in the city.” says Aditya Pittie, CEO, Pittie Group (India distributor for Patanjali). There’re now 400 stores selling Patanjali, and by the end of 2015, that number will likely be a 1000 stores.The ayurveda tag helps it sells big everywhere it goes.ayurvedaindia”We wondered initially if there is some relevance of their products for supermarket customers. But, as a modern trade leader, our role is to democratize and celebrate wider choice for our customers. So we decided to work with the Patanjali team to pilot and discover,” said Damodar Mall, CEO, value retail, Reliance Retail. “Reliance Fresh consumers have pleasantly responded well to our efforts, going by the level of traction Patanjali’s products have received at our stores,” Mall said. They’ve expanded to Big Bazaar, Hyper City and Star Bazaar stores in Mumbai.And now they’re going online.knowyourmobile.

You can now buy Patanjali online. Amazon might be interested soon.

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