1. No plans for an IPO yet; will be bringing new products on board: Patanjali Ayurveda

No plans for an IPO yet; will be bringing new products on board: Patanjali Ayurveda

Patanjali Ayurved on Tuesday said it is focussing only on the domestic market currently and not looking at the international market with vigor.

By: | Updated: April 11, 2017 11:55 AM
Talking about the company strategy it said, “We will be bringing on board new products. We have also developed a new market called Ayurveda.”

Patanjali Ayurved on Tuesday said it is focussing only on the domestic market currently and not looking at the international market with vigor. the In a conversation with ET Now, the FMCG company ruled out any plans for IPO. “There are no plans for an IPO yet,” it said. Talking about the company strategy it said, “We will be bringing on board new products. We have also developed a new market called Ayurveda.” When asked about the advertisement strategy, Patanjali said “Our ads are not for promoting our products but are informative”. “We are against councils that are biased towards a particular party,” it added.

Recently, an ASSOCHAM– TechSci Research paper said that Patanjali Ayurveda has turned out to be the most disruptive force in India’s fast moving consumer goods (FMCG) market. Patanjali which has expanded its product portfolio across wide range of personal care and food and beverages witnessed a whopping annual growth of 146 per cent in fiscal 2016 grossing in turnover of $769 million whereas its peers including ITC, Dabur, Hindustan Unilever, Colgate – Palmolive and Procter and Gamble, among others, struggled to get a growth much less than a double digit.

 

Meanwhile, even as Patanjali plans a tripling of its retail presence to 3 million by March next year, the firm is strengthening its distribution network to be able to reach out to traders. To do this, Patanjali’s advertising strategy is such that it targets traders rather than only consumers. The company is among the top advertisers in the country. Of the total 1.14 lakh insertions last year, 84% were on news channels and nearly 99% on Hindi news channels. That’s one way of reining in costs since this genre is cheaper than GECs (general entertainment channels) but it also means missing out on a core audience. The rest of the FMCG pack relies on entertainment channels to sell their products because news channels have a relatively small share of the viewership pie — English news at 0.03%, Hindi news at 3% and regional news at 3.5%, as per KPMG-FICCI.

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