Patanjali to open stores in premium segments to take on big brands

NEW DELHI: Yoga guru-turned-FMCG baron Ramdev is drawing up a strategic plan to launch a pincer movement on MNCs. On one hand, he is planning to open Patanjali mega stores across India starting with Nagpur and Lucknow, while on the other he has readied a premium brand 'Soundarya' to take on the likes of big cosmetics brands such as L'Oreal and Maybelline.
Patanjali Ayurved, a Haridwar-based company founded by Ramdev and his aide Balkrishna, reached its revenue target of Rs 5,000 crore for the year ended March 31, said Balkrishna, MD of Patanjali Ayurved.
"We have made profits of 8-12%," he said. "And we are just getting started. Wherever we see MNCs taking advantage of Indian consumers, we will enter that segment with better quality natural products and affordable pricing. At the same time, we need to get more competitive in modern trade. These mega stores will help us get there," he said.
The proposed Patanjali mega stores that will sell everything from noodles and biscuits to ayurvedic medicines and ghee, will measure around 5,000 square feet, according to Balkrishna. Currently, apart from e-commerce channels, Patanjali products are sold through 1,200 Ayurvedic Chikitsalayas, 2,500 Arogya Kendras and 8,000 Swadeshi Kendras. Add to that thousands of kirana stores across the country and partnerships with modern retail chains such as Big Bazaar.
"Patanjali can reach its target of growing exponentially only if it augments its reach," said Joginder Chhabra, head of consumer insights and market intelligence at one of the country's largest consumer firms. "Right now its reach is limited. But even with that it is managing to wrest away market share from top players..."