1.

INTRODUCTION
1.1

Patanjali Ayurved Limited

Patanjali Ayurved Limited is an Indian FMCG company. Located in the

industrial area of Haridwar, the company manufactures mineral and herbal
products. According to CLSA and HSBC, Patanjali is the fastest growing fastmoving consumer company (FMCG) in India. It is valued at13000 crore
(US$1.9 billion) and some predict revenues of 5000 crore (US$740 million)
for the fiscal 201516.
Acharya Balkrishna established Patanjali Ayurved Limited in 2006 along with
Baba Ramdev with the objective of establishing science of Ayurveda in
accordance and coordinating with the latest technology and ancient wisdom.
Patanjali Ayurveda's annual turnover for the year 2014-15 increased to
2500 crore (US$370 million) as compared to previous turnovers of1200
crore (US$180 million) (201314), 850 crore (US$130 million) (2012-13) and
450 crore (US$67 million) (201112). Future Group which has tied up with
Patanjali sells about 30 crore (US$4.5 million) worth of Patanjali products
every month.
Patanjali Food and Herbal Park at Haridwar is the main production facility
operated by Patanjali Ayurved. The company plans to establish further units
in India and in Nepal.
In 2016, the Patanjali Food and Herbal Park was given a full-time security
cover of 35 armed Central Industrial Security Force (CISF) commandos. The
park will be the eighth private institute in India to be guarded by CISF
paramilitary forces.
Patanjali Ayurved produces products in the categories of personal care and
food. The company manufactures 444 products including 45 types of
cosmetic products and 30 types of food products. According to Patanjali, all
the products manufactured by Patanjali are made from Ayurveda and natural
components Patanjali products are cheaper than alternatives in the market

due to lesser production and marketing costs. Patanajali has also launched
beauty and baby products. Patanjali Ayurvedic manufacturing division has
over 300 medicines for treating a range of ailments and body conditions,
from common cold to chronic paralysis. Patanajali launched instant noodles
on 15 November 2015. Food Safety and Standards Authority of India slapped
a notice on the company as neither Patanjali nor Aayush, which are the two
brand names under which Patanjali got licenses, have got any approval for
manufacturing instant noodles.
Patanjali Ayurved sells through nearly 4000 retail outlets as of 2015. Patanjali
also sells its products online and is planning to open outlets at railway
stations and airports. Patanjali Ayurveda has tied up with Pittie Group and
Kishore Biyani's Future Group on 9 October 2015. As per the tie-up with
Future Group, all the consumer products of Patanjali will be available for the
direct sale in Future Group outlets. Patanjali Ayurveda products are also
available in modern trade stores including Reliance retail, hyper city and Star
Bazaar apart from online channels. Defense organization DRDO entered into
licensing agreements with Patanjali Ayurveda for transfer of technology.
Patanjali Ayurved, co-founded by televangelist Ramdev, is targeting Rs
10,000-crore revenue in 2016-17, after sales grew 150 per cent in the
previous financial year to Rs 5,000 crore.
1.2 Competitors
1.2.1 Dabur
Dabur is the fourth largest fast-moving consumer goods (FMCG)
company in India with consolidated Revenues of over INR 8,454 Crore
(at the end of 2015-16) and Market Capitalization of over INR 50,120
Crore.
It has 17 ultra-modern manufacturing units spread around the globe
and its products marketed in over 60 countries.
Products-Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola & Real.
Founded in 1884 and the Founder is Dr. S K Burman, in kolkata (West
Bengal) and
The companys headquarters is in Ghaziabad, Uttar Pradesh, India.

1.2.2 Himalaya
The Himalaya Drug Company is a company established by M Manal in
1930 and based in Bangalore, India.
It produces health care products under the name Himalaya Herbal
Healthcare whose products include ayurvedic ingredients.
It is spread across locations in India, the United States, the Middle East,
Asia and Europe. While its products are sold in 90 countries across the
world.
Himalaya Global Holdings Ltd. (HGH), is the parent of The Himalaya
Drug Company worldwide. It is also the global headquarters of all
Himalaya subsidiaries.
1.3 FMCG in India
FMCG goods are popularly known as consumer packaged goods.
Items in this category includes all consumables (other than
groceries/pulses) people buy at regular intervals. The most common
in the list are toilet soaps, detergents, shampoos, toothpaste,
shaving products, shoe polish, packaged foodstuff, and household
accessories and extends to certain electronic goods. These items
are meant for daily of frequent consumption and have a high return.
The fast moving consumer goods (FMCG) segment is the fourth
largest sector in the Indian economy. Indias FMCG industry is
expected to grow at 12 per cent in 2016, reaching the sales figure
of US$ 49 billion. Food products is the leading segment, accounting
for 43 per cent of the overall market. Personal care (22 per cent)
and fabric care (12 per cent) come next in terms of market share.

There is a lot of scope for growth from rural markets with

consumption expected to grow in these areas as penetration of
brands increases. Growing awareness, easier access, and changing
lifestyles have been the key growth drivers for the consumer
market. The Government of India's policies and regulatory
frameworks such as relaxation of license rules and approval of 51
per cent foreign direct investment (FDI) in multi-brand and 100 per
cent in single-brand retail are some of the major growth drivers for
the consumer market.

1.4 Objectives
1.4.1 Primary Objective
To find out the distributor satisfaction with Patanjali products

To find out customer satisfaction and reaction towards

celebrity endorsements.
To Come up with a model for the integrated markerting effect
of Patanjali
1.4.2 Specific Objective
The Specific Objective of the Project are:
To study the Pricing and Marketing Strategy for Patanjalis

1.5

products
To study the Distribution channel for Patanjalis products
To find the customers response towards Patanjalis products
Factors

Factors that Contribute to the growth of Patanjali

1. Spending minimum on marketing. The word of mouth
publicity is helping them sell their products like hot cakes.
2. Saving a lot of money by not hiring a brand ambassador,
the company's promoters are the brand ambassadors.
3. Patanjali is saving a fortune there by Promoting Make In
India
4. Ayurveda is the flavor of season. Talk to anyone in market
and all you hear is getting back to our roots.
5. A strong network of POS (Point of Sale).