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“Patanjali struggles to meet demand for products”
Retailers complain of poor fill rates; company sprucing up supply chain, storage
Raghavendra Kamath | Mumbai August 9, 2016 Last Updated at 00:43 IST
“Patanjali is a hyper start-up. It wants to grow from Rs 5,000 crore to Rs 10,000 crore but is realising that systems and processes are not geared up. Every retail chain is facing supply issues with them. Patanjali will invest Rs 1,150 crore this financial year to set up six processing units and one research centre.”
INTRODUCTION
A decade ago Patanjali Ayurveda came with an influential dialogue “no chemicals & swadeshi alternative”. In a very few months, Patanjali has become a prime household name. Today, Patanjali Ayurveda Limited is
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Patanjali is giving a head-on competition to the consumer goods majors and it is becoming a strong contender in the consumer goods markets in India. According to TechSci Research, Patanjali products could bring a revolution in the ayurvedic products segment. These products are still not fully penetrated into the Indian markets however, anticipated to be successful in the long-term. High brand loyalty and satisfaction has resulted in huge demand of Patanjali products among all classes of consumers. Moreover, unlike other FMCG companies doing businesses in India, its versatile product portfolio offering to the consumers enhances the sales, as the customer ends up buying many products from multiple …show more content…
But Patanjali chooses not to do so because it wants to provide organic products at affordable prices. In case of Patanjali, they are still increasing their workforce operating units and technological advancement but still it is difficult for them to meet out the demand that is arising in the market. If Patanjali wants to obtain equilibrium they have to increase the supply of the products to meet the demand. According to the sources, it is said that the fill rates of Patanjali products are in the range of 40-50%. On the other hand, other FMCG companies in India such as Nestle and HUL have a fill rate of
An increasing number of medical schools are now offering courses in alternative medicine for their students, and some hospitals already have alternative medicine departments. The availability of healers and doctors practicing holistic medicine has also increased in recent years, and more and more people are educating themselves in these new fields. In fact, the World Health Organization estimates that between 65 and 80 percent of the world’s population (about 3 billion people) rely on traditional medicine as their primary form of health care.
The events and occurrence that one faces are guided by the deities in the Indian culture. Indians believe that one’s health is closely related to their body, soul and mind. A health person has his body, soul and mind in balance (Gupta, 2010). On the medical line, Indians balance modern and traditional medicine for their well being and health. Families however have a strong preference for herbal medicines. They will thus turn to traditional treatment and only use modern medicine as the final
To tap the opportunity of leveraging on the all natural products, huge investment in terms of media spends is required to position the product in the desired space in the
Patanjali Ayurved is one of the faster growing Fast Moving Consumer Goods (FMCG) company in India. Set up in 2006 by
• India's $250 billion retail business is the eighth largest in the world and has the potential to grow 7 per cent by 2011. [McKinsey Report] For a company already dominating the world markets, this is an un-passable opportunity.
The Reliance Fresh ventured into the retail business with the famous Farm to Fork model with necessary modifications to Indian context. As per the Farm to Fork model, the company will take control of the product from farm to the other end of chain, consumer’s consumption.
These therapies have proved to be of much benefit in supporting the normal healing course of the body. Even though there are many modern alternative remedies, with different beliefs, all of them operate under some common principles. One of these principles is that the body has the capacity to heal naturally and maintain stability (Paquette, 2000). The other one is that adverse health conditions can occur as a result of factors emanating from mind, emotions and the body. Alternative medicine, according to Goldberg, Trivieri and Anderson, (2002), focuses on determining the chief cause of a particular condition, and dealing with the whole person rather that concentrating on symptoms. If a person pays close attention to his/her health he/she can contribute to his/her wellbeing. Alternative medicine holds firmly to the principle that one treatment cannot be used for all people even though they may be suffering from the same condition. Each and every person as per alternative medicine has distinct bodily, mind and spiritual make up (Goldberg, Trivieri and Anderson, 2002).
Herbal medicines are great alternative for commercially manufactured medicines available in the market. The major reason why herbal medicine differ from modern medicine is because they are produced with 100% natural content. Therefore the plant extract has all the medicinal values that are as effective as modern medicine. Commercially prepared drugs show results quickly but have numerous side effects. However herbal medicines don’t show any side
Proctor and gamble being a company that is widely spread across many countries such as Asia, Europe, Latin America, India attributes its success to its organizational structure that’s unique and tries to connect with customers at the global as well as tries to address the needs of the local communities. It strives for an organizational structure that has less overlaps and is as efficient as possible. During 1990s after a rapid expansion and growth, the company saw a loss in profitability and growth slowing down. Many research analysts pointed it out to the fact of the company being too conservative and risk averse. It had not launched an important brand since 1984 and the other products that it had launched in the same year such as Dryel (home
India’s food processing industry is one of the largest industries in the country. It is ranked fifth in terms of production, consumption, export and expected growth. The industry employs 1.6 million workers directly. Now time is to provide better food processing and marketing infrastructure for Indian industries to serve good quality and safest processed food like ready to eat food, keeping in mind the changing tastes and life style of the Indian demography. Hence MTR has come up with its wide range of ready to eat and instant mixes to satisfy the taste buds of Indian Food Lovers.
Ayurvedic treatment focuses on the removal of imbalance and restoring dosha balance. Treatment can be purifying (sodhana); vamana; expels stomach & respiratory system, virechana; small intestine and liver, vasti: large intestine, nasya: cranial, and raktamokshana: cleanses bloodstream & production of new blood or pacifying(samana); pachana; digestives, deepana; digestive fire, kshut; hunger, thrit; thirst, vyayana; exercise, athapa; sunlight or marutha; wind.
It is the story of David taking on Goliath. A small company having its base in Cuddalore in Tamil Nadu, is now taking on the multinationals of the FMCG world. The Levers of the world now have competition breathing down their necks, from an all too Desi company, CavinKare. Pioneers in the field of sachet revolution, and mass marketing in rural areas, CavinKare has grown from a Rs 15,000 venture to a company making a turnover of Rs 700 crores .
In 1997, Patanjali Ayurved Limited (PAL) started as a small pharmacy in Haridwar which has grown into a huge consumer sector conglomerate today and is poised to be further bigger. In fact, the rise of PAL is being so staggering and well entrenched in consumer psyche that large Indian and Foreign Research houses are considering this pretty much a Disruption Factor in the overall consumer sector. In Aug 2015 CLSA came out with a report titled “Wish you were listed, Patanjali Ayurved” and summarized the threat it presented to listed counterparts. Moreover, lately Credit Suisse, IIFL Research, MOSL, Nomura, etc., have over the last 2 months came with various reports stating
This proposal was commissioned to provide information about PT. Indofood Sukses Makmur Tbk. to our shareholders about the revitalization of our company. We would like to propose an innovation of our product. To compete our competitors, we want to attract our target market by providing a new product because we believe that PT. Indofood already gain customer’s trust.