Why Baba Ramdev's Patanjali should be ready to face tough competition ahead

In a bid to challenge the challenger, the FMCG giant Hindustan Unilever plans to launch Ayurvedic products to counter Baba Ramdev's brainchild- Patanjali.

The Economic Times reported that the Unilever will launch around 20 products - toothpaste and skin cream to soaps and shampoos - under its existing Ayurveda brand Ayush.

Ayush was launched in 2001 as a premium brand but had lost momentum by 2007. Now, the positioning will be mass market - price points between Rs 30 and Rs 130, the report said.

"Ayurveda is a growing trend. Lever Ayush is designed to attract and retain consumers with authentic Ayurveda-based offerings," HUL's personal care Executive Director Sandeep Kohli was quoted as saying.

FMCG companies are facing tough competition from Patanjali as it has captured the significant share of personal care market with its low-priced  Ayurvedic products.

ALSO READ: How 'evangelical' Baba Ramdev changed the playing field for ayurveda
 
Dabur is another FMCG major that has faced a strong fight in ayurvedic products from Patanjali. Dabur CEO Sunil Duggal recently spoke to Business Today and conceded that they may have missed a trick or two while dealing with Patanjali.

"The playing field for ayurveda has expanded tremendously after the entry of Patanjali. The back-to-the-roots mindset means Indian and ayurvedic products are preferred by a significant mass of people," he said.

Patanjali has hit out at foreign multinationals with a "with us or against us" campaign, and while it has been relatively soft on Dabur, it has questioned the company's pricing strategy.

Dabur CEO further said he does not wish to get into a direct fight with Patanjali but wants to cater to consumers who are more rational about their choices

Earlier at an annual event of Danik Bhaskar, Baba Ramdev laid out his future plan and said: "In next 5-10 years, the entire world will go for Patanjali products. I am neither comparing with others nor my aim is to bring down the business of others."

ALSO READ: Baba Ramdev doesn't believe in making profit on everything, says Patanjali's Balkrishna

In last few years, Ramdev has invested very heavily in research on Ayurveda. With few of large ticket announcements, the Patanjali has shown that it is all set to end the dominance of multinational corporations that have for decades been capitalising on the country's market.

HERE ARE RAMDEV'S FIVE MEGA UPCOMING PROJECTS

1.         Patanjali to launch an ambitious Rs 2,000-plus crore project in Uttar Pradesh for integrating farmers to the markets and the wider world.
2.         Patanjali to launch Swadeshi jeans with initial investment of Rs 1,000 crore.
3.         Patanjali to invest Rs 500 crore on 4 mega shelters for cows across India.
4.         Patanjali to invest Rs 750 crore in research on Ayurveda.
5.         5 food parks in Maharashtra, Madhya Pradesh, Andhra Pradesh, Uttar Pradesh and Assam.

1. Patanjali manufactures 444 products including 45 types of cosmetic products and 30 types of food products. According to Patanjali, all the products manufactured by Patanjali are made from Ayurveda and natural components.
2. According to multinational brokerage company CLSA, Patanjali is the fastest growing fast-moving consumer company in India. It is valued at Rs 13,000 crore and is aiming to reach revenues of Rs 5,000 crore for the fiscal 2015-16.
3. The annual turnover of the company for the year 2014-15 increased to Rs 2500 crore as compared to previous turnovers of Rs 1200 crore in 2013-14, Rs 850 crore in 2012-13 and Rs 450 crore in 2011-12.
4. India's one of the largest retail companies, Future Group has tied up with Patanjali and sells about Rs 30 crore worth of the firm's products every month.Apart from this, Patanjali products are also available for direct sale at Reliance stores, Hypercity and Star Bazaar.
5. Patanjali Ayurved has a network of over 4,000 distributors, 10,000 stores and 100 Patanjali mega marts pan India.