Here's How Indian Company Products are Giving Foreign MNCs a Hard Time
Free Book Preview Ultimate Guide to Facebook Advertising
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
With more than 1.36 million followers on Twitter, Sri Sri Ravishankar – the renowned spiritual leader and the founder of the Art of Living Foundation is now venturing vigorously to grab his share of the Ayurveda market. The firm entitled Sri Sri Ayurveda is experiencing a phenomenal growth over the past few years trying to gain from the fabulous route showed by Ramdev’s Patanjali Ayurved products. Though Sri Sri Ayurveda started its production activities way back in 2003, earlier their focus had been the members of the Art of Living Community. However, right from the beginning, Ramdev never hesitated to lock horns with the multinational FMCG companies like Nestle, HUL, Colgate etc.. The path he travelled in this regard over the recent past had been overwhelmingly successful and highly encouraging for the other pioneers of the country to follow suit.
With its strategic manufacturing base in Haridwar, Uttarkhand, Patanjali Ayurved has grown manifold since its inception. The revenues of the firm rapidly shot up from Rs 453 crore in 2011-12 to an estimated Rs 5,000 crore in 2015-16. Today the firm delivers over 450 products under the categories of nutrition, personal care and wellness. In addition, there are about 300 medicines marketed under this brand covering a wide range of medical issues from common colds to paralysis. Over and above, Patanjali has plans to open Patanjali Mega Stores across the nation and has also decided to launch a high profile cosmetic brand named Soundarya to battle with products like L'Oreal and Maybelline. Ramdev patanjali products have entered aggressively into online ecommerce segment as well.
For quite some time, Sri Sri Ravishankar remained a spectator before taking the market by storm with his array of products. The firm seems to be now moving with the clear intention of fast expansion and fighting the market position of the existing multinational brands. Besides its two manufacturing facilities, it is developing a third one now in addition to planning for over 2,500 stores across the nation by 2017. These units will sell a wide range of modern daily consumption products as noted by Tej Katpitia, the chief marketing officer of Sri Sri Ayurveda. The new products line being invented include atta, oils, masalas, breakfast cereals, ready to cook range of items from traditional ingredients and organic staples besides many others.Sri Sri Ayurveda products are also available on their own website & also leading websites like flipkart,BazaarCart,Snapdeal etc.
Our times are characterized by a sharp and unprecedented rise in customer interest towards native Ayurveda products. The situation receives its impetus from the growing health consciousness of people and an added interest in participating in Make in India movement. The trust created by the newly emerging class of Ayurveda brands contributed by the social image of the personalities behind the production and the lower cost of the products have further contributed a great deal to the success of the class of products we are talking about.
Market analysts estimate that the revenues of Patanjali Ayurveda products shall touch 20,000 crores in 2020. There is a very stiff competition across multiple product categories perceived in the market today where the multinational brands are giving away to the native initiatives especially those of Sri Sri Ayurveda and Patanjali Ayurveda class of offerings. On the other hand, we find the Nestle sales fall from Rs 9,854 crore in 2014 to Rs 8,175 crore in 2015. Similarly the market leader Colgate – Palmolive lost about 0.6 percent of its sale in 2015 to Patanjali. Popular anticipations expect this trend to continue rapidly accounting for the phenomenal growth of the emerging Ayurveda brands in India. One thing is sure our own Indian Dark Knight have woken up and is going to haunt CEOs, Managers of other FMCG MNCs