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Jan, 02 2017

​Patanjali proves to be a strong competition against FMCG

Some of Patanjali Ayurved's brands which have eaten into the market share of established firms include Dant Kanti, Atta noodles and Kesh Kanti.

Patanjali Ayurved, the FMCG venture promoted by yoga guru Ramdev, was the biggest disruptive force in India's fast moving consumer goods (FMCG) market, according to a report.

A Assocham TechSci research report said, "Patanjali Ayurved has turned out to be the most disruptive force in the Indian FMCG market...it witnessed a whopping annual growth of 146 per cent in fiscal year 2016 grossing a turnover of USD 769 million, whereas its peers including ITC, Dabur, Hindustan Unilever, Colgate Palmolive and Procter and Gamble struggled to get a growth much less than double digit."

It further said: "Initially, the company focused only on the development of Ayurvedic medicines, but gradually started manufacturing food items and cosmetics...With around 500 products, many of them in FMCG category, the company has significantly increased its market share. Many of its product launches have impacted share of other FMCG companies in that product category."

In 2015, the total Indian FMCG market was USD 43 billion of which 60 percent is concentrated in urban areas while rest is in the rural areas.

According to the report, some of Patanjali Ayurved's brands which have eaten into the market share of established firms include Dant Kanti, Atta noodles and Kesh Kanti.

Acharya Bal Krishna, a close disciple of Baba Ramdev, owns close to 94 per cent Patanjali Ayurved . Rests of the small holdings are dispersed among a small group of individuals.

The paper said India is also emerging as a strong regional export hub for the domestic and multinational FMCG players leveraging the country's cost competitiveness.

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