Introduction:

Patanjali Ayurveda Kendra Ltd was officially inaugurated by Pram Yoga Rishi Swami
Ramdevji & Ayurveda Shiromani Rishikalpa Acharya Shree Balkrishnaji on 27 September 2007
(2064/6/10 B.S.) and started its operation as an Patanjali Ayurveda Kendra Ltd at swoyambhu,
Katmandu, Nepal with the ultimate aim of providing holistic, natural and effective Ayurveda
treatment.

Patanjali is present in almost all categories of personal care and food products -- soaps,
shampoos, dental care, balms, skin creams, biscuits, ghee, juices, honey, Atta, mustard oil,
masala, sugar and much more. Going by current turnover projections of Rs 2,000 crore,

This is despite the fact that most of Patanjali's products are priced lower than its competitors.
What gives the company an edge is its very low expenses on advertisements. In comparison,
leading FMCG companies spend about 20-30% of their sales on advertisements.

With the Patanjali brand's growing reach and popularity among consumers, it's now being
discussed in corporate boardrooms as well. This is in sharp contrast to its quiet beginning in
2007. As the demand for his products grew, Baba Ramdev realized the huge scope within the
FMCG sector and started building the range, taking on deep-pocketed multinationals.

Value based integration of the value chain is a strategic advantages

for Patanjali

There was a dramatic increase in term of revenue and net profits generated by Patanjali in the
past five financial years (Table II). There was also histrionic increase in the economic benefits
and potential of the region where this Food Park was established. There was a change in
community demographics, employment, income, public services and qualities.

Through the creation of value chain, it provided employment to thousands of people. It led to an
enhancement in the relationship between direct, indirect and induced economic linkage. It also
encouraged small and medium size entrepreneurs.

The reasons for the value chain of Patanjali to be unique. The preceding demonstration is
common and may well be found everywhere. However, the contextual difference in thevalue
chain of Patanjali and the other value chains is values demonstrated by this organization. This
organization was initiated on the premise of medical and health care of the masses, especially
through propulsion and adaptation of yoga and Ayurveda as a mode of life wherein the
promoters and initiators of this organization Swami Ramdev and Acharya Balkrishna are
renowned Yogi (A practitioner of Yoga) and Ayurvedacharya (The teacher of Ayurveda)
respectively. Both of them had earned international fame in their fields and had gained intense
trust amongst the masses, which has now become the basis for the strength of the brand equity
their products enjoy because of the simple reason that the consumers find themselves as
beneficiaries.

According to the Brand Trust Report (2017) , Patanjali leapt by 158 ranks in just one year
ranking 15th in the year 2017. Within a very short span of time, Patanjali Food & Herbal Park
has reached certain heights and is still growing by opening other food park across the country
and abroad as well.

We know there are always some business treats in the world. Ex : economical, political
technological, cultural, govt. policies, social. But Patanjali has minimize their threats by
using their value chain strategic advantages, which are given below :

Commodity prices:

The consumption of Amla was 500 MT per year, which increased upto 20,000 MT per year.
Consumption of Aloe Vera increased upto 14,000 MT per year from the earlier consumption
of only 100 MT per year. Only 400 MT of spices and 20,000 MT of herbs were in demand
before Food Park, which increased to 1,200 MT for spices, and 120,000 MT for herbs.

Employment generation:

Patanjali Food & Herbal Park generated employment for more than 0.6 million people directly
and indirectly ( Table III ). More than 1,200 people were employed at PPC, 1,000 people at CPC
units related to common infrastructure and 12,000 people related to various tenants and
processing units. Total employment generated through vendors was 15,000. It also provided
employment to 120,000 people through production distribution and retail outlets. In totality,
Food Park generated employment for 619,000 people as on 13 May 2015.

Alternate market channel for the farmers:

Patanjali Food & Herbal Park helped in stabilizing the prices of perishable commodities, which
in turn reduced the Distress Sale by the producers and farmers. The majority of the
intermediaries were removed from the value chain by direct intervention with the farmers.
Farmers were able to receive better price realization. There was an improvement in the quality of
the produce. This resulted in increased demand of agro and horticulture produce.
Distribution channels:

Patanjali had set up more than 178,000 retail outlets, 15,000 exclusive retail outlets ( Ken
Research, 2016 ). It also has thousands of Seva Kendra, Swadeshi Kendra, Arogya Kendra and
Chikitsalaya across the country that ensured the supply to ultimate consumers. They increased
the efficiency levels of Patanjalis supply chain and removed intermediaries and distributors. The
distribution strategy of Patanjali to open its tailored outlets was a paradigm shift. These outlets
had Ayurvedic doctors and sales representatives who dedicatedly explain the utility of the
products, create an interpersonal bond with the customers and assist them in buying. This is
different from other brands, whose products are available at uncommitted outlets, where their
products are in competition with products of other brands. Their strategy was to create a new
market rather than depend on the existing market; this came from a strong belief in the quality
and affordability of their products.

Other benefits :

Benefits can be categorized into three types: immediate, midterm and long-term benefits.
Employment generation was an immediate benefit that led to better infrastructure and menities.
This resulted in a better standard of living. It provided new employment opportunities by
employing skilled as well as unskilled labor and assisted in skill up gradation. Labours found
regular source of income that resulted in increased literacy rate because of more disposable
incomes.

Conclusion:

Patanjali is able to create a brand perception of health and wellness among the Indian masses,
primarily because of Baba Ramdevs association. Hence, more people are getting attracted to
Patanjalis products and are re-buying products more frequently.