INTRODUCTION

Patanjali ayurveda limited (PAL) is an Indian herbal FMCG company which was established in
the year 2006 by Baba Ramdev and Balakrishnan who is the current CEO of it holding 94%
stake. It is a registered company under the Company’s Act, 1956. It has its registered office
in New Delhi and its headquarters and manufacturing units located in Haridwar,
Uttarakhand. It has its branch offices in US,UK,Canada and Nepal. Baba Ramdev acts as the
brand ambassador of Patanjali and has a key role in making strategic decisions for the
organization but he doesn’t own any shares in the company. Born to Nepalese parents who
later migrated to India, Acharya Balakrishna was Ramdev's junior in ashram Khanpur
Gurukul in Haryana. Acharya Balkrishna and him set up Divya Pharmacy - under the aegis
of Ramdev's guru, Swami Shankar Dev's, ashram to make Ayurvedic and herbal medicines.
The medicines were an instant hit with the users and Ramdev and Balkrishna sought to scale
and diversify into other products. But that proved difficult since Divya Pharmacy was
registered under a trust.
At the same time, with Ramdev's popularity soaring, substantial funds began to come in -
sizeable loans from the likes of NRIs Sarwan and Sunita Poddar, as well as locals such as
Govind Agarwal - which in turn helped to get bank loans. Thus, was born Patanjali Ayurveda
Limited (PAL) as a private company in 2006. Today, Balkrishna stands among the richest
men in India. What started as a small pharmacy is now one of the main players in the Indian
fast moving consumer goods (FMCG) sector giving tough competition to HUL,ITC,Dabur etc.
It was valued at ₹3,000 crore (equivalent to ₹37 billion or US$460 million in 2020) While
Ramdev is busy propagating Yoga and Ayurveda to create a market for the products,
Balkrishna is creating the products. . Balkrishna looks after all the operations of Patanjali.
From making marketing strategies to advertising and hiring senior staff to managing
finances

.
The vision and mission statements of Patanjali Ayurveda Limited are as follows:

VISION:
Keeping Nationalism, Ayurved and Yog as our pillars, we are committed to create a healthier
society and country. To raise the pride and glory of the world, we are geared up to serve
people by bringing the blessings of nature into their lives. With sheer dedication, scientific
approach, astute planning and realism, we are poised to write a new success story for the
world.
MISSION:
Making India an ideal place for the growth and development of Ayurveda and a prototype
for the rest of the world.
The major principles of Patanjali business are:
(a) promotion of ayurvedic medicine and research and development in this regard;
(b) increasing agricultural produce and imparting value additions by processing the agriproduce;
(c) providing products with purity at affordable prices;
(d) uplifting and providing the income generating resources to larger strata of society including
farmers, workers, labours, etc. – vision to connect with 5 crores farmers;
(e) touching every Indian life by catering to their consumable needs;
(f) promoting domestic production, branding, employment generation to 5 lakh people and saving in
foreign exchange;
(g) blending of traditional and modern lifestyle;
(h) promoting entrepreneurship;
(i) Maximum reach as against profit maximization
STRUCTURE OF THE ORGANIZATION

 Patanjali follows a hierarchical structure for its organization. At present acharya Balkrishna
acts as the CEO and chairman of Patanjali and is also one of the board members
 the hierarchial flow of the hierarchy from top to bottom is as follows:

Top-level management :

ceo

board of directors

cfo

cmo

chro

R&D head
 Middle level management:

head of supply

plant/production
manager

regional
managers

zonal managers

area sales manager

Lower-level management:

the lower level management consists of farmers from whom they procure raw materials, salesmen,
vendors, distributors, doctors at ayurvedic clinics

Names of the members of the board of directors and their designation:-

Name Designation
balkrishna Managing director
Shri ram bharat Non-executive director
Swami muktanand director
Rakesh mittal Non-executive director
Ajai kumar arya Independent director
Dr.sumedha Independent director
Goods and services

Patanjali Ayurveda produces over 900 products across various categories ranging from health care,
personal care, ayurvedic medicines, food products etc. All of its products are claimed to be natural
and made from herbal ingredients and can be used and consumed by people of all ages. Its products
promise customers overall well-being by infusing ayurvedic properties into it. When compared to
products of other brands, Patanjali products are inexpensive and are of superior quality which made
it a strong competitor to other FMCG brands mainly HUL. Unlike Baidyanath, Patanjali did not
restrict itself to ayurvedic medicines rather started producing a wide range of goods. Also, Patanjali
produces all of its goods under the same brand name as “Patanjali”. This has helped considerably in
brand recall value

 under natural skin care it has the following categories:

eye care
Shishu care
dental care
skin care
hair care
body care

 under herbal home care it has the following categories:

pooja essentials
dishwash bars and gels
toiletries

 under natural food products, it has the following categories:

cookies and biscuits
spices
dried fruits and nuts
rice
noodles and snacks
sauces and pickles
chocolates and jam
flours
oils
dal pulses
tea
dalia, poha and vermicelli
sweets and papad
breakfast cereals and oats
salt and sugar
Below are the top five most selling products of Patanjali which contribute enormously to the
revenue of the company. These products have given Patanjali an impetus to turn into one of
the fastest growing FMCG’s in India:
1. Cow ghee- food products category
Patanjali earned a revenue of Rs 1,467 crore from cow’s ghee in the FY17. In the
organised branded ghee market, Patanjali is a direct rival to Amul

2. Toothpaste- dental care category

Dantkanti toothpaste earned a revenue of Rs 940 crore in the FY17. In the dental
care segment, its rivals are colgate Palmolive india ltd and dabur india ltd

3. Ayurvedic medicines
Patanjali earned Rs 870 crore revenue in the FY17 from ayurvedic medicines, nearly
four times compared to its direct rival Dabur India.

4. Shampoo- hair care category

Keshkanti shampoo contributed a revenue of Rs 825 crore for Patanjali in the
personal care segment. Its direct rival is HUL.

5. Soaps- skin care category

Patanjali’s herbal soap segment mopped up a revenue of Rs 574 crore. Its rivals
include HUL,ITC, Godrej and Nirma

External factors affecting the operations and performance of the industry:

A company’s performance depends on both macro and micro external factors.

external factors that affect the business can be divided into two categories
Immediate or operational environment: this includes suppliers, competitors, labour markets,
financial institutions and customers

general or contextual environment comprises those macro-environmental: factors such as

economic, political, socio-cultural, technological and legal influences
SWOT analysis:
Strengths:

1. Baba Ramdev: one distinguishing feature of Patanjali is that it never roped in any celebrities
or high-profile people to endorse its products rather banked on the popularity of baba
Ramdev. this yoga guru has been instrumental in boosting the growth of Patanjali. He acts as
the brand ambassador of it . His fame and popularity have helped in persuading customers
to buy the products and have also in gaining the trust of customers. Being a yoga guru,
Baba Ramdev has already led many people to pursue a healthier life through his
yoga camps and the initial consumers of Patanjali were his followers that not
only worked as consumers but also helped market the brand through their
positive reviews of the brand.
Today Patanjali wouldn’t have been such a prominent fmcg organization without baba
Ramdev.
2. Lower prices of products:- the prices of Patanjali products are driven by segment,
geography and most importantly competition pricing. Patanjali products are priced
atleast 20-30% lower than its competitors’ products. This has helped the organization gain
ground in the FMCG sector in a relatively lesser time. Because of the lower prices, it has
enabled consumers to switch to its products in a lesser time. It has also made itself
accessible to those consumers who cannot afford expensive products This pricing strategy
adopted by Patanjali has given other FMCG companies like hul,p&g,itc a run for their money.
3. Range of products: Unlike ayurvedic medicine Baidyanath,Patanjali did not restrict itself to
just medicines. It started rolling out a wide variety of products ranging from toothpaste to
noodles. It has products in shishu care,health care,hair care,home care,skin care. It has also
entered into the dairy sector,frozen vegetables and plans to launch packaged drinking water
under the name “divya jal” These broad-ranging items have helped the organization bring in
a lot of revenue thus making it one of the top fmcg’s in the country.
4. Ayurvedic and natural products: Patanjali claims all of its products to be natural without any
added preservatives infused with ayurvedic properties. This has been one of its biggest
strengths. Since customers these days prefer natural products,it made Patanjali one of the
go-to brands for natural products
5. Swadeshi-factor: PM Modi’s “make in india” campaign has helped gain popularity and
importance for Indian products. Patanjali’s swadeshi initiative has helped it gain huge
customer base. Since Patanjali is a homegrown brand, many people prefer it over foreign
goods.
6. Strong distribution network:- Over 15,000 Patanjali outlets are operating across
India, which gives the brand strong distribution channels. The brand sells its
products through medical centers Patanjali Arogya Kendras and Patanjali
Chikitsalayas and also through Swadeshi Kendras (non-medical centers). This
has helped the brand to easily reach the masses and build trust and customer
loyalty.
7. Word of mouth publicity:- Patanjali has been utilizing word of mouth publicity.
Patanjali was one of the very first brands to use this strategy. Initially, the
company didn’t rely on any other form of marketing. Word of mouth publicity
proved to be beneficial for Patanjali with Baba Ramdev’s yoga camp followers
promoting and endorsing the brand. In recent years, the company has been
pushing its products through all promotional campaigns
 8. E-commerce:- Patanjali has been quick in adopting latest technology. It has
created an online presence for itself where consumers can make purchases
directly from its website without any hassle
WEAKNESSES:-

1. Less promotion:- Patanjali does not promote its products extensively like its competitors
HUL,ITC,Marico etc. It relies mostly on word-of-mouth publicity and very few general
entertainment channels like Star and Zee. In order to compete with big-wigs of fmcg sector it
should make its digital and tele presence soon
2. Pricing strategy: Patanjali needs to revise its current pricing strategy or else the
company will fail to sustain itself. The current pricing strategy gives low-profit
margins which are necessary for Patanjali’s survival. The company will have to
deal with high labor, and raw materials cost if it doesn’t change its pricing
strategy.  it risks limiting the ability of the brand to expand as it is unable
to invest its revenues, investing in new manufacturing units and other
investments required to grow the company.
3. Dependencence on baba Ramdev for endorsement: Baba Ramdev has
political affiliations, and any act of a political vendetta against Baba
Ramdev by any government agency can directly impact the Patanjali
brand.
4. Less manufacturing plants: Patanjali is growing steadily and to meet the
demand it should set up more manufacturing plants across the country.
5. Limited international presence: unlike its competitors Patanjali does not
have wide international clientele. baba Ramdev has a good number of
international audience,hence Patanjali should bank on this international
fame of ramdev and expand its market overseas to diversify their
business.
6. Declining revenue: Economic Times reported that Patanjali’s revenue has come down
by 10% to Rs 8,135 crore as on March 2018 compared to revenue of Rs 9,030 crore witnessed
in the previous fiscal of 2016-17. A number of factors such as the strategy of high volume
and low pricing, management of trade channels and lack of a coherent advertising strategy,
company’s inability to timely adapt to the GST regime and develop infrastructure and supply
chain. stiff competition from rivals have contributed to the decline in sales and profits.
7. Launched an array of products in a short time: Patanjali started rolling out a
plethora of products in a relatively shorter period of time . But not all of these products
proved to be profitable. Despite having such a broad range of portfolio only a handful of the
products are profitable. Hence Patanjali should focus more on those products that can help
them generate substantial profits.
8. No clinical approval: since patanjali’s products are ayurvedic, it does not have
any clinically approved label on its products. All of its products are tested in
their personal labs. This might prove to be a weak point in near future

OPPORTUNITIES
 1. International expansion: Baba Ramdev has fame outside of india too, hence
Patanjali can use this fame of his to expand its business in foreign countries
which will help generate international revenue and grow its brand in overseas.
2. Rural expansion: Since Patanjali offers its products at a much cheaper price
than its competitors, it can expand in the rural areas of our country where
people can afford the products. This will help Patanjali in expanding the
customer base
3. Luxury products: Patanjali until now has rolled out products that serve middle
and lower-middle-income families. It can now produce luxury products using
high-quality herbs and ingredients to cater to the elite section of society.
4. Tie-ups: Patanjali has tied up with e-commerce platforms like big
basket,Flipkart,etc, and future retail group to expand its reach to consumers
5. Change in lifestyle: More and more people are increasingly shifting toward
natural products. Patanjali can capture this shift in preferences of the
consumer to further expand its consumer base
6. Social media platforms: Today people use social media more than anything
else. The fact that they spend a lot of time surfing the internet and scrolling
through Instagram and YouTube can be leveraged by Patanjali to advertise
and make people know more about its products.
7. Instant food business: Patanjali can open quick-service restaurants which
prepare healthy and easy-to-make snacks using Patanjali’s products. This can
help in increase in the sales of the products and increase the customer base
THREATS:-

1. Increased competition: Key players like HUL,ITC,DABUR,P&G are already giving a tough
competition to Patanjali by constantly creating new products and keeping the customers
engaged through their extensive marketing and advertising.
2. Controversies: Patanjali has been in the news quite a lot of times for producing inferior
quality and inefficient products. For instance, during covid it has rolled out cornonil and
swasari medicines to cure covid. But the ministry of ayush has ordered Patanjali to stop
advertising the product as it required clinical trials. Earlier the Nepal Department of Drug
Administration has issued a notice stating that its medicines are of poor quality. This has led to
negative publicity and raising concerns about the quality of the products.

3. Political Indulgence – Baba Ramdev is often seen on many political platforms,

giving speeches. Though not actively involved in Politics, this indirect indulgence
can also affect Patanjali. One wrong or controversial statement can hamper the
image & reputation of the brand.
4. Poor harvest: Patanjali depends on farm produce for its products. So, any delay in
harvest,poor reap or in case of any natural disaster or calamity can affect its
production and sales
PESTLE ANALYSIS:

Political factors:

 The political environment was, and still is conducive for PAL’s growth and expansion.
Baba Ramdev shares a friendly equation with the Prime Minister of India (Shri
Narendra Modi). Both share a nationalistic approach, and the Prime Ministers’
“Make in India” initiative has been favorable to PAL and its ideology.
 Government’s taxation policies impact on the cost of the input products and hence
impacting on the final price of the products. Pal now enjoys a tax exempt from the
government of India, placing it a step ahead of other FMCGs.
 Government of India has a separate “Ayush – Ministry” to promote Yoga, Ayurved
and other traditional and complementary medicines.
 With The UN declaring 21st June as the International Day, due to initiatives of Prime
Minister of India, the international appeal of PAL is bound to grow due to its
association with yoga and Baba Ramdev.
Economic factors:

 the company works on the principle of ‘swadeshi’ product. It also

sources its raw materials directly from farmers and thus eliminates
margin. It also has its own farmland for raw materials which
boosts their profit. This is why the price of each product is 15 –
20% less than other competitors making it a highly demanded
company in Indian market
 the higher GDP growth rate signals growing demand in the economy. Patanjali can
leverage this trend by expanding its product range and targeting new customers.
One way to start is by closely mapping the changes in – consumer buying behaviour
and emerging value proposition.
 GST implementation has also favourably impacted the company, as
it increases the income capacity of the middle class
 Increasing Inflation rate in India has been the main reason the Indian
population is looking for cheaper alternate of products. Patanjali has captured
this need just perfectly
Social factors: -
 Change in lifestyle: People these days are becoming health conscious and
are preferring natural and healthy food products. Patanjali can leverage this to
advertise more about its products so that it can reach as many audiences as
possible
 Yoga: there has been a tremendous increase in inculcating yoga as a lifestyle.
People are now more aware about yoga and its benefits than ever before. The
association of baba ramdev and yoga has proven to be beneficial as baba
ramdev is the face of patanjali and also yoga.
 Patriotism: Patanjali is swadeshi product. As a result, many people who look
out for made in india products are likely to purchase patanjali products
Technological factors:
 Digital media: Today internet and social media have entered everybody’s
lives. Every task can be done at just a click. This has enabled patanjali to
have a technology based business model. One can order its products online
through its website or through e-commerce platforms like amazon or flipkart.
 Research & Development: Patanjali has set up Patnjali yogpeet in 2010 which
is a reserach foundation in Hyderabad and haridwar. Through these reserach
centres it aims to amalgamate science and ayurveda to provide efficient and
quality products to its consumers
 Automation: Patanjali has adopted automated processes to produce large
quantities of products in lesser time thus maintaning a balance between
supply and demand.
Legal factors:

 Patanjali as an alternative medicine falls under the Ministry of

Ayush. Which is why when Patanjali launched a medicine claiming
it to be a cure for Covid- 19, the Ayush Ministry asked it to stop
advertising such claims without showing research and data.
 Various complaints have been filed against the company including
Madras High court .
 The Medicine Central Control Act 1970, The Drug and Cosmetic
Act 1940, The Drugs and Magic Remedies Act 1954 etc are some of
the laws that govern Patanjali and it’s functioning.
Environmental factors:
 Patanjali aims at providing natural,chemical free products. This is one of the
USP’S of patanjali.Thus the organization is producing environmental friendly
products to its consumers
 Patanjali has also invested in bio-research to improve its products