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Patanjali goes down South to double its revenues

The brand is looking to tap into the southern market and is seeing increasing growth in the rural market. The company feels the next round of growth will come from the hair care category

After becoming a household name in North, East and West of India, Baba Ramdev's Patanjali Ayurved has moved its focus to the Southern market for the next phase of growth.

The company is targeting to double its revenue to Rs 20,000 crore in the next one year. Southern India, where the penetration of Patanjali products is low, is going to be a critical market to achieve growth.

Recently, Ramdev had announced that the company was targeting a turnover of Rs 20,000 crore in one year. The company claims that during last fiscal it had a turnover of more than Rs 10,000 crore.

The company's spokesperson SK Tijarawala told that Patanjali wants to make inroads into South India through its Kesh Kanti brand, under which the company sells various types of shampoo and hair oil products.

"Although we are popular in South, we are yet to make major inroads in that part of India," Tijarawala said.

"Our products are a hit in North East, Central and North West areas. We have now turned focus on South India. We'll start with the hair care category which has huge potential since these markets understand Ayurved better," he added.

Patanjali has already started work on its advertising and communication strategy in key markets of Kerala, Andhra Pradesh, Telangana, Karnataka and Tamil Nadu. Various campaigns designed for these specific markets would be rolled out soon.

"Now we have started strengthening our communication in South by advertising on all major Southern GECs and news channels. We have been active in their language on social media as well. Apart from that, Swami Ramdevji’s programme has been rolled out in all Southern languages as well,” said Tijarawala.

Patanjali in last couple of years has grown to be one of the leading names in the consumer products category. Recently, the company outpaced veteran players in the field of oral care like Hindustan Unilever's Pepsodent, Colgate's Active Salt and GlaxoSmithKline's Sensodyne, to emerge as the fourth largest player in the category with a market share of 6.2 per cent.

Products like cow ghee, toothpaste, soaps and shampoo have aided the brand’s meteoric rise and according to Tijarawala, hair care could be the next category where another fight for supremacy will go down between Baba Ramdev’s home-grown brand and the MNCs of the world.

Tijarawala claimed that Kesh Kanti hair care’s contribution to Patanjali’s turnover has been around Rs 2,000 crore, including the revenue from Kesh Kanti shampoo. While Hindustan Unilever still leads the shampoo category with a market share of 45 per cent, Tijarawala said that he is not perturbed by such numbers and Patanjali's aim is to be the number one player in the hair care category as well.

For Kesh Kanti, the introduction of shampoo sachets has helped the brand target lower income groups and make the product available to them. Tijarawala also believes that the increased awareness about good hygiene practices in rural areas has given a boost to the home care and personal care category.

According to Kantar Worldpanel, the total number of households that use Patanjali is 38 per cent. The brand reaches 53 per cent of all urban and 28 per cent of all rural households, said the report.

The company is also stressing on the rural market, where Ramdev is a household name, to acquire another round of millions of consumers. 

“We started with the urban market and although we had followers the market posed its own set of problems like infrastructural issues. But today, rural is growing better than urban,” said Tijarawala.

Tags: Patanjali
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