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Baba Ramdev Patanjali is targeted by the 100 year old Ayurvedic Company named Baidyanath. Patanjali, which has strengthened its hold over the herbal and Ayurvedic products in India’s FMCG market, is now challenged by Baidyanath.

Consumers in India are shifting towards the use of natural, organic and Ayurvedic products. The usage of Herbal products is increasing amongst young people day by day.

 

Patanjali Dantkanti

Patanjali Ayurvedic Company introduced Dantkanti toothpaste made from herbal ingredients. The company raised revenue of Rs.940 crores in FY 2017 with the sale of Dantkanti toothpaste. With the introduction of Patanjali Dantakanti, the shares of popular toothpaste Colgate and Dabur fell from 57.4 percent to 55.6 percent in the year 2016.

Patanjali sells multiple products from detergents and toothpaste to ghee, Atta and noodles in an FMCG sector. The revenue raised from it is up to Rs 2.5 lakh crores thereby offering massive space for its expansion.

Oral care market in India

The oral care market in india is 15 thousand crores in which the contribution of toothpaste alone is Rs.7 thousand crores.  Colgate Palmolive’s shares in the toothpaste market is 55 percent and for Patanjali is increased by 8%.

Baidyanath Ayurveda

Baidyanath has completed its 100 years and is going to step into FMCG Market related to health this year. It is going to introduce a variety of herbal products like toothpaste, natural juices and masalas into the market. The toothpaste launched by Baidyanath Company might give tough competition to Patanjali dantkanti and Colgate.

Baidyanath was established in the year 1917. Along with its modern research and manufacturing technology, it became a leading company making Ayurvedic products. Considering the past experience, modern and advance technology and the shift of natural youth towards the use of organic and Ayurvedic products, they decided to step in the FMCG segment.

The executive director of Baidyanath Company Anurag Sharma says that Baidyanath tops in the list of Ayurvedic productions. The company products are selled out to more than 1 lakh retail outlets in India. They cater about 50 thousand practitioners.

Baidyanath to enter FMCG segment

Baidyanath are the biggest producers of Ayurvedic products with more than 700 formulations. The company has also opened its first store in New Delhi after entering the FMCG market.

The brand named Mantra has already set up a subsidiary in Michigan. They have cleared the brand with the US FDA and are bringing it to India. It is trying to compete with existing herbal companies like Forest Essentials, Kama, Shenaz and Biotique. They will manufacture these products with an investment of ₹15 crores in Himachal Pradesh.

It will also use e-commerce sites as a distribution channel. It already tied up with one of the e-commerce site named Amazon. Baidyanath planned to make an investment in a media company NDTV.  NDTV provides food-based online venture under the name NDTV Food.

Patanjali has several categories in FMCG market but Baidyanath will stick only to Ayurvedic category. The targeted revenue for the next two years is rupees 60 crores. To build distribution in the FMCG space is the primary challenge of Baidyanath. Recently, it launched an Ayurvedic mouth freshener named Ullas. Baidyanath Ayurveda is already a wide distributor of Ayurvedic medicines with nearly 10 lakh outlets. But It will have to establish a fresh new distribution channel for FMCG market.

 

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