patanjali's turn over

1. COMPARISON OF FMCG
WITH SPECIAL REFERENCE
TO PATANJALI

2. INTRODUCTION
 Fast-moving consumer goods (FMCG)or consumer packaged goods
are products that are sold quickly and at relatively low cost. Examples include non-
durable goods such as soft drinks, toiletries, over-the-counter drugs, processed
foods and many other consumables. Patanjali Ayurved Limited is an Indian FMCG
company. Located in the industrial area of Haridwar. The company manufactures
mineral and herbal products. Patanjali Ayurved Limited (PAL), founded by Acharya
Balakrishna and yoga guru Baba Ramdev reported revenues of INR 5000 cr.
(FY16e). What started as a small pharmacy in 1997, morphed into an FMCG
company in 2006.

3. PATANJALI PRODUCTS


4. COMPARISON TABLE
COMPARISON OF FMCG WITH SPECIAL REFERENCE TO PATANJALI
METEORIC GROWTH&FY16 SALES TILL DEC.31,2015
NAME OF PRODUCTS FY16 SALES(in RS .Cr)
Godrej consumer 6691
Dabur 6279
Emami 1953
Marico 4820
Patanjali Ayurved 3267

5. COMPARISON PIE-CHART
Sales
Godrej Dabur Emami Marico Patanjali

6. INTERPRETATION
 Patanjali Ayurved Ltd. (PAL) is growing rapidly, giving the much-older established
players in the fast moving consumer goods (FMCG) segment a run for their money.And, if the Haridwar-
based company is able to sustain the pace, it would soon overtake other majors such as Dabur India,
Emami and Marico in terms of sales and profitability.
 According to a rating rationale document by Brickwork Ratings, a credit rating agency,
Patanjali Ayurved clocked in a provisional turnover of Rs. 3267
crore in the first 10 months of the current financial year. This is more than double of Rs. 1,587 crore
reported in the corresponding period of the previous financial year.
 . Patanjali’s turnover and profit is currently less than most of the FMCG majors, it is
rising at a much faster pace. According to Bloomberg, Emami reported a turnover of Rs.1,953 crore in the
first nine months of FY16. Marico clocked in a turnover of Rs.4,820 crore between April 1 and December
31,2015. Both, Godrej Consumer Products and Dabur registered turnovers in excess of Rs. 6,000 crore in
the first nine months of FY16.
 Patanjali is clearly targeting much older FMCG majors like Colgate-Palmolive,
Nestle, Dabur and HUL. Its wide array of products — including ghee, spices, pulses, chyawanprash,
toothpaste, shampoo, toothbrush, instant noodlesand also beauty products — competes directly with
products from the heavyweights.

7.  Patanjali is clearly targeting much older FMCG majors like Colgate-Palmolive, Nestle, Dabur a
HUL. Its wide array of products — including ghee, spices, pulses, chyawanprash, toothpaste,
shampoo, toothbrush, instant noodlesand also beauty products — competes directly with
products from the heavyweights.
 Patanjali is clearly targeting much older FMCG majors like Colgate-Palmolive, Nestle, Dabur a
HUL. Its wide array of products — including ghee, spices, pulses, chyawanprash, toothpaste,
shampoo, toothbrush, instant noodlesand also beauty products — competes directly with
products from the heavyweights.
 In terms of profitability margin, Patanjali is almost on a par with the bigger companies. “The
reflects the wide variety of FMCG products brought out by the company under ‘Patanjali’ bra
name, strong growth in terms of sales and profitability registered over the last two years, abs
of term debt and low level of working capital facilities, and ambitious plans for future expans
and growth.”

8. CONCLUSION
 India’s FMCG market, the country’s fourth largest sector, is estimated to reach USD 49
billion in 20161. The FMCG sector is diverse with various sub-segments including food
& beverages, personal care, household care, tobacco, lighting and healthcare products.
Major ayurvedic brands – Dabur and Baidyanath and Indian and MNC FMCG majors –
Colgate, HUL, GSK, Marico, Emami etc. make up the majority of the organised segment
of the Indian FMCG space.
 Established FMCG brands, which were once hesitant to acknowledge PAL as a threat,
can no longer label the shift in consumer preferences toward PAL as a fleeting trend.
Recently, HUL reported its slowest revenue growth rate in 6 years and Colgate-
Palmolive reported its worst top line growth (8% q-o-q and 4% y-o-y) in ~4 years.
 This slowdown can be attributed to PAL’s increasing market penetration and consumer
acceptability of its products. According to IIFL, Patanjali’s top line will grow to INR
20,000 cr. by 2020, a 10x jump from FY15. Majority of PAL’s growth could come at the
expense of current market leaders, with Colgate experiencing an 8% drop in FY20
sales.

9. Thank you All