We can certainly not underestimate the power of this Common Man – the renowned Yoga guru turned into an FMCG tycoon by selling products ranging from soaps and mustard oil to cornflakes. Baba Ramdev is surely striking the right balance in all the arenas.
Baba Ramdev’s brands seem to have scaled up quite rapidly. For fiscal 2014, Patanjali Ayurved, the company that manufactures the products, clocked a turnover of about Rs 1,200 crore. And in the current fiscal, Patanjali is expected to clock a turnover of Rs 2,000 crore, according toAditya Pittie, CEO, Pittie Group. This marks a 67% jump from the previous fiscal. Pittie is the Mumbai distributor for Patanjali’s general trade business and a pan-India distributor for its modern trade segment.
Currently, Patanjali is present in almost all categories of personal care and food products — soaps, shampoos, dental care, balms, skin creams, biscuits, ghee, juices, honey, atta, mustard oil, masala, sugar and much more. Despite the fact that most of Patanjali’s products are priced lower than its competitors, it makes bigger money by spending very low on advertisements. In comparison, leading FMCG companies spend about 20-30% of their sales on advertisements.
According to Piyush Pandey, Chairman, Ogilvy South Asia Brands, “Ramdev is a great proponent of a direct marketing FMCG company. He is one step ahead of the likes of Amways and Avon of the World. He is an all rounder who is batting, bowling and fielding at the same time.”
Little wonder that Patanjali’s success is now the talk of boardroom discussion too so much so that not just kiranas but big retailers like Reliance Retail, Big Bazaar, Hyper City and Star Bazaar are also stocking Ramdev’s FMCG products. But the real play is online. While Patanjali’s products are already available at e-commerce site BigBasket, Ramdev is now aiming for Amazon too.
Do take a look at the way our baba markets its products amongst the masses. Quite a big one!