Comparative Study of Patanjali high grossing products with Competitors

Patanjali Ayurvedic Limited is one of the fastest growing Indian FMCG company which was established in 2006 by Baba Ramdev along with Acharya Balkrishna. Its manufacturing unit and headquarters are located in industrial area of Haridwar and the registered office is located in Delhi.

According to India infoline finance Ltd. IIFL, Acharya Balkrishna accounts for 94% of the share and the remaining stake are owned by Sarwan and Sunita Poddar, an NRI couple. However, Baba Ramdev does not own any stakes but plays an important role in the brand gaining visibility by marketing Patanjali’s product in his yoga camps.

Some of the main products of Patanjali are Patanjali Moisturizer Cream, Patanjali Multani Mitti Face Pack, Patanjali Aloe Vera Juice, Patanjali Yoga Sutra, Patanjali Coconut Hair Wash, Patanjali Sheetal oil, Patanjali Sunscreen, Patanjali Aloe Vera apricot Face Scrub, Patanjali Anti-wrinkle Cream, and Patanjali Drishti Eye drop.

Patanjali is leading over its competitors due to following reasons-

  • Innovation – Patanjali being a major competitor, FMCG companies are expected to introduce innovative Herbal and Ayurvedic products over the forecast period.
  • Pricing – Patanjali sells its product at a lower price to meet consumer demands. Patanjali is able to sell its best quality product at a price which is 10% to 30% less than its competitors who spend 12% to 18% on advertising and promotion.
  • Brand Marketing – Patanjali has given a tough competition to some of the FMCG majors in the area of hair care, oral care and OTC products across its brand portfolio through impressive brand marketing by Baba Ramdev.
  • Revenue Market Share – According to IIFL, Patanjali could attain a net turnover of Rs 20,000 crore by FY20.

New launches of Patanjali include Patanjali Noodles, Dant Kanti Advance, and Sugar-free Chyawanprash, Power Vita, Seabuckthorn dietary supplement and powdered hair dye. Other than the products related to lifestyle and health, the company has plans to touch every consumer category.

Table 1: Products of Patanjali and Other Brands.

S. No. Type of Products Patanjali Other Brands
1 Face wash Patanjali Neem &Tulsi Face wash Himalaya Neem Face Wash
2 Toothpaste DantKanti Colgate active salt neem toothpaste
3 Hair oil Patanjali Kesh Kanti Hair Oil Emami Kesh King Hair Care
4 Honey Patanjali Honey Dabur Honey
5 Shampoo Patanjali Kesh Kanti Anti-dandruff Shampoo Head & Shoulder Anti-dandruff Shampoo
6 Chyawanprash Patanjali Chyawanprash Himani Chyawanprash& Dabur Chyawanprash
7 Herbal Hand Wash Patanjali antibacterial herbal hand wash Dettol handwash&Lifeboyhandwash
8 Instant Noodles Patanjali Atta Noodles Maggi Atta Noodles
9 Oats Patanjali Oats Saffola Oats, Quaker oats

Competitor’s innovative products to survive in Competitive Market

Since Patanjali has come up with many of the new products so consumer companies have also improvised in innovation in the ayurvedic as well as herbal products.

  • Companies like Colgate launched Vedshakti toothpaste and L’Oreal introduced a new product with the natural ingredient in hair care range under Garnier Ultra Blends.
  • Godrej Consumer launched neem mosquito oil, a crème hair color that has coconut oil and new variants in natural soaps.
  • Hindustan Unilever (HUL) launched hair care products like Ayush antidandruff neem shampoo, Ayush antidandruff neem conditioner, and skin care products like Ayush saffron face cream and pain balms on e-commerce platforms under Ayush Therapy.

Table 2: Ingredients of Patanjali Atta Noodles and Maggi Atta Noodles

S. No. Patanjali Atta Noodles Maggi Atta Noodles
1 Acidifying agent 330 Acidifying agent 330
2 Flavour enhancer 627 & 631 Flavour enhancer 627
3 Calcium Carbonate Calcium Carbonate
4 Trans and Saturated fatty acids Trans and Saturated fatty acids
5 Dehydrated vegetables Color 150d
6 Turmeric powder Hydrolysed groundnuts/Vegetable proteins

Table 3: Ingredients of Patanjali Aloe vera Gel and its Competitor

S. No. Patanjali (Aloe vera Gel) Fab India (Aloe Vera Soothing Gel)
1 Aloe Vera 90% W/V Aloe Vera powder
2 Tartazine Yellow Pure Water
3 Brilliant blue Gylcerine
4 Vitamin E Triethanol

 Table 4: Ingredients of Patanjali Dant Kanti and its Competitors

S. No Patanjali (Dant Kanti) Colgate (Vedshakti) Vicco (Vajradanti Ayurvedic Toothpaste)
1 Clove Clove Oil of Clove
2 Spearmint Camphor Menthol
3 Neem Lemon Mulethi
4 Babul Basil Cinnamon
5 Akarkara Eucalyptus Eucalyptus
6 Tomar Thymol Thymol
7 Vajradanti _ Bengal Madder
8 Bakul _ Common Jujube
9 Meswak _ Asian Holly Oak

Recent advancements in Patanjali Ayurveda:

  1. In April 2016, Private sector banks such as ICICI and HDFC started providing loans to Patanjali Ayurvedic Limited to increase its production facility in 2017. It is expected that its day to day production will reach up to 2,000 at the end of the financial year 2017.
  2. Many industries are showing their interest to sign a marketing deal with Patanjali Ayurvedic Limited. This deal will add to the total fiscal revenue of the company.
  3. Patanjali tied with Future group to increase their product penetration, in addition to this, the company also started selling their products through an e-commerce website.
  4. Patanjali lists around 30 pipeline products, which will directly show the positive impact on the company fiscal results and it is expected that these products will come in the end of 2017.

According to Assocham, in India’s fast moving consumer goods (FMCG) sector Patanjali Ayurvedic Limited is the most promising, valuable brand witnessing an exponential growth rate. In the fiscal year 2016, when competitors such as Hindustan Unilever, Dabur, ITC, Colgate – Palmolive, and Procter & gamble were struggling to hold the double-digit growth rate, Patanjali Ayurveda showed the annual growth of more than 100 percent in product portfolios such as personal care, food and beverages, and Ayurvedic. In current market scenario, Patanjali Ayurvedic Limited has totally changed the game rules. It is believed that this Swadeshi pride in products will stay for long and will definitely make an impact in competitor’s sale.

This article is authored by Mr. Atul Gupta

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