Baba Ramdev’s Vastram Will Now Compete Against Nike & Adidas; Will Take On Horlicks and Bournvita With Powervita
Baba Ramdev’s Patanjali brand has some big plans in the FMCG and ready to wear garments niche. As per reports coming in, Patanjali will soon launch their own line of yogawear, which will compete against global biggies such as Nike and Adidas.
Patanjali’s Yogawear line Vastram will be made from Khadi, and would be made affordable to create a dent in the market.
Baba Ramdev said, “Our yogawear Vastram will be made of khadi. MNCs have always misled consumers in India. We want to take them on with our products that come with the goodness of Ayurveda and are priced affordably.”
Patanjali has already launched an instant noodles product this week, which was meant to challenge the dominance of Maggi and ITC’s Yippi. Made from wheat, Patanjali Noodles is already a big hit, as 5 manufacturing units have been set up at Delhi NCR, Maharashtra, MP, UP and Karnataka to manage the surge in demand. Each pack is priced at Rs 15, which is way lower than normal pricing of wheat based noodles in the market.
Patanjali has some excellent plans for taking on established players in health drink niche as well. They are soon going to launch their own health drink Powervita, which can give a scare to brands like Horlicks and Bournvita.
Last month, Patanjali tied up with Future Group to push for wider reach and distribution of their products via Big Bazaar and Food Bazaar brands.
Patanjali – A Lesson In Branding and Marketing
Founded in 2006, Patanjali churned out revenues of Rs 2500 crore in 2014-15, and by the time 2015 ends, they will have revenues of Rs 5000 crore, growing at a phenomenal rate of 150% per year.
No wonder Freecharge founder Kunal Shah had to acknowledge on his Facebook profile: “Patanjali FMCG business is a big marketing lesson for brands.”
According to a report by multinational brokerage CLSA, Patanjali is right now India’s fastest growing FMCG company, which, in a short span of time has become larger than Emami and Jyothy Lab combined.
Using innovative manufacturing procedures, low cost Ayurveda based ingredients and low pricing, Patanjali manages an operating margin of 20%, which is unprecedented in this niche. Thanks to the huge following of Baba Ramdev due to his free Yoga lessons, Patanajali has now become a brand to reckon with.
As per some valuations, Patanjali’s worth is close to Rs 14000 crore as of now, which will substantially increase once their Yogawear line and health drink products are launched.
The most interesting aspect: Legally speaking, Baba Ramdev has no stake in Patanjali.
Do you use Patanjali’s products? How has been your experience? Will you ditch Nike and Horlicks for Vastram and Powervita? Do let us know by commenting right here!