Business Model of Patanjali

Pratyusha Srivastava Pratyusha Srivastava
Jul 23, 2021 5 min read
Business Model of Patanjali

When it's Ayurvedics products, no one can beat Patanjali. The widely famous Indian consumer goods brand, Patanjali is known to be very promising to the Indians. Patanjali was founded by Baba Ramdev, who is considered the yoga icon, along with Acharya Balkrishna.

Patanjali provides the manufacturing, distributing, and selling of incredible Indian household products. The most prominent thing about Patanjali products is that they are considered entirely natural, using the conventional methods of producing household products. Patanjali offers various consumer goods, minerals, herbal products, and Ayurvedic medicines.

The company was founded in 2006 with an official registered office in Delhi, India. The company's headquarter is established in Haridwar, Uttarakhand. Patanjali utilizes the best technological method together with conventional prescriptions of Ayurveda and produces absolutely promising and natural products. In this article, we will be discussing the most remarkable business model of Patanjali and its revenue generation methods. Let's get started!

About Patanjali
Where does Patanjali operate?
Key products of Patanjali
Target Audience of Patanjali
Business Model of Patanjali
What is unique about the Business Model of Patanjali?
How does Patanjali make money?
FAQ

About Patanjali

Patanjali is known to be India's multinational consumer products manufacturing company, headquartered in Haridwar, Uttarakhand, India. The company was established by Baba Ramdev and Acharya Balkrishna in the year 2006.

Patanjali produces various household products including cosmetics, Ayurvedic medicines, and food products. Patanjali serves various other countries, especially in the middle east and other Indian subcontinents.

Patanjali is known to be the fastest-growing FMCG company across India. As of 2019, the estimated valuation of Patanjali was around $35 billion (Rs. 3,000 crores). The annual turnover of the company is around Rs. 10,216 crores.

With the incredible success of the Patanjali brand, various companies like Colgate, Godrej Consumer, ITC and others, are majorly affected in the market. Patanjali has experienced some very remarkable developments in the market and gained a huge loyal customer base.

Where does Patanjali operate?

The official registered office of Patanjali is established in Delhi, whereas its headquarters is in the industrial areas of Haridwar, Uttarakhand. The company serves many foreign countries as well, especially in the Middle East and the subcontinent of India.

Patanjali has been remarkable with its products and services that's why the company is growing more immensely towards its expansion in other countries.

Key products of Patanjali

Patanjali manufactures dozens of household products, categorizes them in various segments such as cosmetics, food products, personal care, beverages, and Ayurvedic medicines.

Later in 2018, the company expanded its hands and took over the manufacturing of clothes also. It even opened a store for clothing in Delhi under the brand name, Patanjali Paridhan.

Patanjali Paridhan Store
Patanjali Paridhan Store

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Target Audience of Patanjali

Patanjali entirely focuses on targeting an immense Indian audience. The company provides goods at very low pricing and the influence of Baba Ramdev over the general public, promotes the Patanjali brand more vibrantly. Patanjali targets its audience entirely, without any sub-categories.

Business Model of Patanjali

The business model of Β Patanjali is based on the FMCG model. The company manufactures herbal and minerals based products and sells them in the market at some very affordable prices. Patanjali holds a huge network with people in its yoga and Ayurveda sector.

The Yoga sector has around 5 lakh branches and 5 lakh mentors in them for its Patanjali Yoga Samiti. Along with this, Patanjali's consumer goods company gains immense profit. Patanjali has always been upfront for promoting and guiding people for yoga, it even organizes yoga-based camps across the country. Its Yoga network is pretty huge, which brings out great benefits to the goods brand.

Patanjali Yoga Camp
Patanjali Yoga Camp

Patanjali's business model is quite similar to the other FMCG-based companies, where they manufacture the products and sell them. But in comparison to other FMCG companies, Patanjali has experienced incredible growth.

Patanjali has made some remarkable marketing strategies that bring out great outcomes. Now, as we got the idea of Patanjali's business model. Let's move forward to how this business model is beneficial and unique for the company.

What is unique about the Business Model of Patanjali?

The most significant thing about Patanjali consumer goods company is that the company is built to provide quality to the customer and not engage with the burden of profit. Patanjali offers products at a very low price as compared to any other FMCG company. The company manufactures its products with the accurate raw materials obtained from the farmers in order to minimize the production cost.

The distributors and the retailers find very low profit through Patanjali products. That's why Patanjali establishes its retail outlets in various cities and towns.

Patanjali sells products from all categories under just one brand, this saves the extra promotion and advertisements cost.


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Revenue of Patanjali Ayurveda across India
Revenue of Patanjali Ayurveda across India

How does Patanjali make money?

As being an FMCG company, Patanjali also manufactures the product and sells them. But aside from this, Patanjali has a huge loyal customer base with great marketing strategies in hand.

Patanjali increases its sales and revenue through the means of credible existence in the target base. Patanjali sells its products at some pretty low prices that bring out more reach and sales for the company.

Patanjali holds a very effective revenue generation method through its huge loyal customers base along with an absolutely affordable cost structure, obtaining various marketing tactics. Moreover, the company includes several distribution strategies including:

  1. Patanjali Chikitsalaya: Doctors checkup the health of patients without any charge and recommend Patanjali's Ayurvedic medicine.
  2. Swadeshi Kendra: The outlets of Patanjali where you can find all the household and non-medicine products.
  3. Patanjali Arogya Kendra: Yoga experts guides for yoga exercises and fitness tips and training for the customers. Also, they suggest various Ayurvedic medicines.

Conclusion

Patanjali is a remarkable FMCG-based company that manufactures incredible household products with great quality at very reasonable pricing. Patanjali prioritizes quality at the top and with such a huge loyal customer base, the company receives great outcomes. Patanjali has been in the market for over 15 years and in these years, the company has experienced incredible success and growth graph. And with time, the company is all set to achieve more heights.

FAQ

What is the revenue of Patanjali?

The revenue of Patanjali is 30,000 crores INR in 2021.

Who is the CEO of Patanjali?

Acharya Balkrishna is the CEO of Patanjali.

When was Patanjali founded?

Patanjali was founded on January 2006 by Ramdev and Balkrishna.

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