Home » Business » Patanjali Grew By 146% In 2016; Hailed As The Most Disruptive FMCG Company In 2016 By Assocham!
Last updated: January 2, 2017 at 18:39 pm

Patanjali Grew By 146% In 2016; Hailed As The Most Disruptive FMCG Company In 2016 By Assocham!

Patanjali Dant Kanti Baba Ramdev Advertising ASCI

Patanjali, the home grown Ayurved based FMCG conglomerate has been declared as India’s most disruptive FMCG company in 2016. And this declaration has come straight from Assocham, as it conducted it research in association with TechSci.

The research found that 10 year old Patanjali has grown by massive 146% in 2016, which is phenomenal, considering that established, decades old FMCG companies like ITC, Dabur, Hindustan Unilever, Colgate – Palmolive and Procter & Gamble have limped with less than 2-digit growth in India.

As per Assocham, Patanjali will hit $1 billion (Rs 6700 crore) revenue mark by 2020 and it churned out revenues of $769 million. Patanjali has already expanded into deep rural hinterland, besides urban locations as their products are now available across 15,000 exclusive outlets, 3000 Patanjali chikitshalaya kendra besides being sold at hyper-markets of Big Bazaar and Reliance Fresh.

Although Patanjali sells more than 500 products, the report specifically mentions three products: Dant Kanti, Atta noodles and Kesh Kanti which have made big dents in the market share of other FMCG companies in India. Last year, it was found that Patanjali has beaten all other brands in TV advertisement spending.

Last year, we had already declared Patanjali as a disruptive force in FMCG sector, a fact which has now been validated by Assocham study. And, we had included Patanjali as one of the 6 biggest business moments of 2016 as well. In September, it was reported that Patanjali products would be now sold at ration shops as well.

Patanjali Triggering Herbal Movement in India?

The report also mentions an interesting fact: FMCG companies in India are now shying away from FDI, as they are now focussing on developing and curating a pure herbal based, Ayurved backed product launches, which are less-capital centric.

No wonder companies like Godrej, Hindustan Lever and P&G are now focussing on launching their own Ayurved and Herbal based products in India.

Assocham Secretary General Mr. D.S. Rawat said, “This also reflects a kind of latent desire among the Indian consumers to adopt the products which are safe, healthy and free from side-effects”,

The report says that Indian FMCG sector is valued at $43 billion (2015 revenues), out of which 60% of the sales happen at urban locations and 40% in rural locations.

Interestingly, last month, Haridwar Court had slapped a fine of Rs 11 lakh on Patanjali for misleading advertisements. In July last year, ASCI had declared some Patanjali ads as misleading.

In their response, Baba Ramdev (who co-founded Patanjali) had declared ASCI has an unconstitutional body and had threatened to sue them.

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