Thursday, April 14, 2016

The two thousand crore empire of Baba Ramdev is a success story which hard nosed business will envy. It's time blue blooded IIM and Harvard educated elite took note of the earthy commerce lessons that the yoga master has to give. From a small shop to a boutique product chain the story has unfolded without any big fanfare.

Today the Yoga Baron's empire is worth Rs. 2000 crore, and is giving other FMCG biggies sleepless nights. Ramdev is the face of the company, it's brand ambassador and promoter. The huge mass base he has developed in his avtaar as a yoga guru is getting converted to a consumer base, and is minting him money.

It's the era of new age living. Health and holistic living are the buzz words. Ancient healing sciences are being embraced by the people. Tradition is no longer treated with disdain. All these are helping the surge of Patanjali.

To top it all, Ramdev is following an aggressive pricing starategy. He is cutting prices of his products which is making similar products of other companies look expensive. These price cuts are so deep that it is giving the consumers no choice but to buy Patanjali.

The Patanjali franchise is growing in leaps and bounds. Patanjali has 5,000 franchisee stores. Retailers average gross turnover is Rs 25,000 every day. Profit margins for retailers are 10-20% across product categories. 

The game has barely begun. Ramdev has tied with two big advertising agencies to push his company. Plans are afoot to enter retail market in a big way. It won't be a surprise that in the times to come Patanjali's footprint gets across fast food, services and other sectors. It's trans national growth can't be belittled. Add this to the fact that Ramdev has political ambitions and then envision the force multiplier that the company will garner. 



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