make in india case study of patanjali

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Patanjali Takes On Industry Giants

By: Sandeep Puri, Adrija Ajeya, Jupanjot Singh Chugh

In April 2016, the yoga guru who started Patanjali Ayurved Limited declared that his company's revenue would exceed that of Colgate-Palmolive India by the end of the year and would overtake Hindustan…

• Length: 9 page(s)
• Publication Date: Aug 31, 2016
• Discipline: Marketing
• Product #: W16538-PDF-ENG

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In April 2016, the yoga guru who started Patanjali Ayurved Limited declared that his company's revenue would exceed that of Colgate-Palmolive India by the end of the year and would overtake Hindustan Unilever in India in three years. Patanjali's revenue grew 125-150 per cent from the previous year. The company aimed to continue growing at a rate of 100-125 per cent annually over the next three years, as a manufacturer and marketer of a wide range of products including flour, biscuits, noodles, spices, honey, and toothpaste. It also considered exploring international expansion to support its high growth targets. Could Patanjali aggressively expand into more categories while maintaining sustainable growth?

Sandeep Puri is affiliated with Institute of Management Technology, Ghaziabad.

Learning Objectives

This case is designed for use in MBA-level management courses in strategic decision-making, marketing strategy, marketing program design, and strategic brand management. After completion of this case, students will be able to Understand Patanjali's growth trajectory in the Indian market; Understand the importance of marketing mix in building a brand; Illustrate the importance of brand identity; Understand brand equity concepts, such as Keller's brand equity model; Analyze Ansoff's matrix for growth strategies; and Understand the importance of digital marketing in building a brand.

Aug 31, 2016

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Business Model of Patanjali

Pratyusha Srivastava

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 .

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.

The business model of  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'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 .

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:

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

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.

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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Patanjali ayurved invades India

• Published: 13 February 2018
• Volume 45 , pages 75–91, ( 2018 )

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• Jashim Uddin Ahmed   ORCID: orcid.org/0000-0001-8145-6912 1 ,
• Hafiza Sultana 2 &
• Asma Ahmed 2  

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We never had a business plan. We also don’t know markets or marketing. But what we know is serving the people by providing them high-quality products at attractive prices. Acharya Balkrishna. Managing Director of Patanjali Ayurved (June 2015).

The case study is based on Patanjali Ayurved Limited, the biggest disruptive force in the fast-moving consumer goods (FMCG) space of India. The organization has achieved an astounding growth of 100% during FY2016-17 with a gross revenue of Rs 100 billion, whereas its competitors, both the multinational and homegrown firms, have struggled to maintain a double digit growth. It has become a FMCG giant from a small Ayurvedic pharmacy over the decade and plans to expand further by entering into new product categories like apparel and dairy. The study aims to analyze Indian FMCG together with the business model, marketing mix, competitiveness, and strategies of Patanjali in order to identify its strengths, weaknesses, opportunities, and challenges. The findings indicate that, although the company excels in product variety, pricing strategy, process utilization, early internalization, and online sales strategy, it needs to focus on the improvement of its manufacturing facility, product quality, advertisement contents, distribution network, as well as consumer research and segmentation to confront the fierce competition and market trends lying ahead.

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Source : Patanjali Ayurved 2017b

Source : The Economic Times 2017b

Source : The Economic Times 2016c

Source Photographs taken by authors, 2017

The word yoga is derived from the Sanskrit root ‘ yuj, ’ meaning to join or unite. The beginnings of yoga were developed by the Indus-Sarasvati civilization in Northern India over 5000 years ago but some researchers think that yoga may be up to 10,000 years old. The classical period (between 500 B. C. and 800 A.D.) is defined by Patanjali’s Yoga-Sutras, the first systematic presentation of yoga. During the late 1800s and early 1900s, yoga masters began to travel to the west, attracting attention and followers. Subsequently, the practice of yoga has blossomed as a part of healthy lifestyle.

The term Ayurveda combines two Sanskrit words: ayur , which means life, and veda , which means science or knowledge; so, Ayurveda means the science of life. Ayurveda or Ayurveda medicine is a system of medicine with historical roots in the Indian subcontinent, and India is one of the most popular countries when it comes to herbal medicine. A study shows that around 20,000 medicinal plant species have been recorded and more than 500 traditional communities use about 800 plant species for curing different diseases in the country (Kamboj 2000 ). Another study indicates that approximately 80% of Indian population uses herbal medicine (Gogtay et al. 2002 ). The popularity of herbal medicine in Western countries has increased and, consequently, these remedies are now available from South Asian markets, Ayurveda practitioners, health food stores, and on the internet (Hontz 2004 ).

A fiscal year or financial year, written as FY in short form, starts from 1st April and ends on 31st March in India.

The FMCG arm of Patanjali reported revenues of Rs 93.46 billion, while the organization’s overall revenue, including the earnings of Divya Pharmacy, stood at Rs 105.61 billion in FY2016-17 (VC Circle 2017 ).

A few of the selected organizations are not full-fledged FMCG in nature, but have products that compete in the FMCG market and with the products of Patanjali.

‘Premiumization’ occurs when the FMCG firms offer the consumers more benefits from the same product.

The BOP concept, proposed in 2002, indicated that it is possible for corporations to be engaged with the two-thirds of humanity that they had systematically ignored in the past, and they can do so with the potential to eradicate poverty (Forbes India 2013 ). According to C. K. Prahalad, when the underprivileged population are treated as consumers, they gain access to products and services as well as the dignity of attention and choices from the private sector that was previously applicable for the middle-class and rich (Prahalad 2004 ). While the idea received criticism, within a couple of years, firms like Unilever and S.C. Johnson came up with innovative business models to tap the so-called BOP markets in economies like India. Unilever in India, now HUL, reacted to threats from local brands, like Nirma (a familiar Indian brand in soap and detergent category) and entered the BOP segments by offering low-income consumer products in sachets and single-serve packaging along with lower cost by reduced volume. Other organizations soon imitated this strategy and introduced sachet packaging.

Facebook is the most preferred platform with highest usage of regional language adoption and other platforms like Twitter and Pinterest are also coming up (The Economic Times, May 19, 2016h ).

In Bengali and Hindi, Swadeshi is similar to Swa—self or own and deshi—native; therefore, the term Swadeshi can be translated as solely native. The Swadeshi principles led by Mahatma Ghandi (1869–1948) was the key to the independence of India. The Swadeshi movement, part of the independence movement of the country, was an economic strategy aimed at releasing the nation from British power and improving its economic conditions. Strategies of the Swadeshi movement involved boycotting British products and the revival of domestic products and production processes.

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The Economic Times (2016f) Colgate to battle Patanjali’s Dant Kanti with herbal toothpaste Vedshakti. By Sagar Malviya, Neha Tyagi, August 1, 2016. http://economictimes.indiatimes.com/industry/cons-products/fmcg/colgate-to-battle-patanjalis-dant-kanti-with-herbal-toothpaste-vedshakti/articleshow/53482249.cms . Accessed 3 Jan 2017

The Economic Times (2016g) Nestle plans up to 25 products to take on rivals like Patanjali. Industry, June 20, 2016. http://economictimes.indiatimes.com/industry/cons-products/food/nestle-plans-up-to-25-products-to-take-on-rivals-like-patanjali/articleshow/52833972.cms . Accessed 3 Jan 2017

The Economic Times (2016h) Brands like Coca Cola, Patanjali and others embrace regional languages on social media. By Anumeha Chaturvedi, May 19, 2016. http://economictimes.indiatimes.com/tech/internet/brands-like-coca-cola-patanjali-and-others-embrace-regional-languages-on-social-media/articleshow/52335944.cms . Accessed 23 Dec 2016

The Economic Times (2016i) Could distribution be Patanjali’s Achilles heel? By Shephali Bhatt, May 18, 2016. http://economictimes.indiatimes.com/magazines/brand-equity/could-distribution-be-patanjalis-achilles-heel/articleshow/52306425.cms . Accessed 23 Dec 2016

The Economic Times (2016j) Taking note from Ramdev’s Patanjali Ayurved, Colgate plans to launch newer products in ‘natural’ space. By Sagar Malviya, May 2, 2016. http://economictimes.indiatimes.com/industry/cons-products/fmcg/taking-note-from-ramdevs-patanjali-ayurved-colgate-plans-to-launch-newer-products-in-natural-space/articleshow/52068466.cms . Accessed 14 Dec 2016

The Economic Times (2016k) Baba Ramdev’s Patanjali leaves Ayurveda ‘pioneers’ Baidyanath and Vicco behind. By Sagar Malviya and Ratna Bhushan, March 18, 2016. http://economictimes.indiatimes.com/industry/cons-products/fmcg/baba-ramdevs-patanjali-leaves-ayurveda-pioneers-like-baidyanath-and-vicco-behind/articleshow/51448913.cms . Accessed 23 Dec 2016

The Economic Times (2016l) Patanjali eats into Colgate’s toothpaste market share. By Partha Sinha, January 29, 2016. http://economictimes.indiatimes.com/industry/cons-products/fmcg/Patanjali-eats-into-Colgates-toothpaste-market-share/articleshow/50767293.cms . Accessed 3 Jan 2017

The Economic Times (2017a) Inside Patanjali: Here’s what life is like in Baba Ramdev’s company. By Priyanka Pathak-Narain, July 30, 2017. https://economictimes.indiatimes.com/industry/cons-products/fmcg/inside-patanjali-heres-what-life-is-like-in-baba-ramdevs-company/articleshow/59824892.cms . Accessed 20 Nov 2017

The Economic Times (2017b) Patanjali will double turnover in a year; we have broken MNCs’ monopoly: Baba Ramdev. By Ratna Bhushan, May 5, 2017. http://economictimes.indiatimes.com/industry/cons-products/fmcg/patanjali-will-double-turnover-in-a-year-we-have-broken-mncs-monopoly-baba-ramdev/articleshow/58512814.cms . Accessed 23 Sept 2017

The Economic Times (2017c) India to become third-largest consumer economy by 2025: BCG. By Sachin Dave, March 21, 2017. http://economictimes.indiatimes.com/news/economy/indicators/india-to-become-third-largest-consumer-economy-by-2025-bcg/articleshow/57755835.cms . Accessed 22 Sept 2017

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(The) VC Circle (2017) SpiceJet’s Ajay Singh may take control of NDTV; Patanjali eyeing structured credit. By Keshav Sunkara, Industry, September 22, 2017. https://www.vccircle.com/spicejets-ajay-singh-may-take-control-of-ndtv-patanjali-eyeing-structured-credit/ . Accessed 20 Nov 2017

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Ahmed, J.U., Sultana, H. & Ahmed, A. Patanjali ayurved invades India. Decision 45 , 75–91 (2018). https://doi.org/10.1007/s40622-018-0176-x

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Patanjali Business Model (Case study) How Ramdev Made est. ₹10,216 cr.

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August 8, 2019

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Patanjali Case study & Detailed Analysis (Business Model)

2 Minute Summary

Today, Everyone Knowns Patanjali as It is the fastest growing FMCG company in India. It was started by Baba Ramdev And Aacharya Balkrishna in January 2006. It’s Manufacturing Unit and headquarters located in Haridwar. Its also has a manufacturing unit in Nepal. Patanjali declared its annual turnover of the year 2016-17 to be estimated 10,2186 crores. It was listed 13th in the list of India’s most trusted brand as of 2018 and ranked first in FMCG category. Patanjali’s consumers mostly came from its great Yoga and Patanjali ayurveda network. Patanjali Yog Samiti has 1Lakh branches and 5 lakh teachers.  The company doubled its sales targets each year and set its sights on total domination over the Indian consumers. It operates on Low Pricing and Cost dynamics. There are many Patanjali distribution Strategies like they used ADS(Alternative Patanjali Distribution System) to create new demand. Also, they are playing on Low Prices, Swadeshi Manufacturing, Part of the profits going to charity, Gaining Massive Popularity from Yog Guru Ramdev Baba, Natural & Ayurvedic Products and much more.

As Baba Ramdev is famous for Yoga and Ayurveda.

In this blog, You will get to know the entrepreneurial side of Ramkrishna Yadav.

How a Desi Company replaces Colgate?

How a Yoga Guru created an approx Rs 10,216  crore?

Have you ever think about the Patanjali business model? 

How Patanjali is producing so many types of products?

We have got all covered for you.

Started by  Baba Ramdev  And  Aacharya Balkrishna in January 2006, Patanjali is an Indian consumer goods company Manufacturing Unit and headquarters located in Haridwar. Its also has a manufacturing unit in Nepal.

According to  CLSA  and  HSBC , Patanjali is the fastest growing Indian FMCG. Patanjali declared its annual turnover of the year 2016-17 to be estimated 10,2186 crores. It was listed 13th in the list of India’s most trusted brand as of 2018 and ranked first in FMCG category.

What’s in it for me?

Patanjali Business Model

Patanjali’s consumers mostly came from its great Yoga and Patanjali Ayurveda network. Patanjali Yog Samiti has 1Lakh branches and 5 lakh teachers.

There are 10,000 Patanjali Chikitshalya and Arogya Kendras.

The people who come to their yoga camps are ready to market to the company. Added to that all kind of Swadeshi branding of Baba Ramdev.

Its integrated mega-facilities is Haridwar, their firm churned out as much as its customers demand.

Patanjali Into Swadeshi Pitch.

After pramotic swadeshi to consumers Baba Ramdev building a business empire by targeted traders community on the swadeshi plank.

You saw in its ad in social and print media, Patanjali Ayurved is appealing to shopkeepers “to give prominence to Patanjali product on shelves” because it “will help in fulfilling the dream of Mahatma Gandhi to promote Swadeshi”.

“The country needs Swadeshi Products; now we are telling shopkeepers to help in this movement.

Ultimately, Swadeshi product should reach the consumer,” Patanjali spokesperson SK Tijarawala said.

Baba Ramdev followed the same strategy with organised retailers such as the Future Group, Reliance Retail and Shoppers’ Stop-promoted HyperCITY.

While Reliance Retail has created ‘Patanjali Destinations’ at its out.

Speaking at a Conclave, Patanjali CEO, Acharya Balkrishna questioned why the food processing sector in India was not generating enough revenue.

He went on to city figure from Thailand, Which indicated that India’s all food processing is only 6 % to Thailand’s 30%.

Best sales and distribution methods:

Patanjali’s combination of low prices,’ natural and pure’ proposition and ‘swadeshi’ positioning are widely acknowledged to be the reasons behind success, what is not that well known is the critical role played by Patanjali’s path-breaking sales and Patanjali distribution strategy in driving this exceptional growth trajectory.

A perfect Strategy for sales and distribution of patanjali was a key factor behind Patanjali’s meteoric Growth. Patanjali’s low-cost distribution system was remarkably efficient in getting the acceptance of its products against far heftier rivals.

The company doubled its sales and distribution of patanjali targets each year and set its sights on total domination over the Indian consumers. It developed a piece of hunger for new distributors and new channels for trade.

Low Pricing and Cost dynamics

Patanjali products are made available at an exclusive discount as compared to their companies. The company’s raw material comes directly from farmers.

It has lower marketing spends and overhead cost compared to its peer and as such can produce at a much cheaper price.

A large proportion of the India population, especially the middle class, is extremely price-sensitive and looks for quality products at a reasonable price.

Patanjali has understood and developed a strategy to take advantages of the aforesaid mindset capturing market share from share established players.

A Baba as Brand Ambassador

The other big factor in Patanjali’s favour is the image of Baba Ramdev. He is a recognized face all over India and beyond.

Patanjali can create a brand perception of health and wellness among the Indian masses, primarily because of Ramdev’s association with the brand who is considered to be a veteran of yoga and a firm believer of Ayurveda.

In India market where personalities outshine products, it’s imperative to have a brand of your own.

How Patanjali challenged The FMCG Protocol

Now the days Indian market is witnessing a tussle between FMCG brand to be on top of the game, especially in becoming the “desi-est brand”, which Has been occupied by Yoga Guru turned industrialist Baba Ramdev’s Patanjali Ayurved Ltd.

Since the international players started venturing into the market of India, they had only focused on eliminating the traditional and age-old methods and introducing modern techniques.

Patanjali made the “deshi” segment alive when other FMCG brand was still selling the chemically loaded herbal products.

Slowly other companies too started to look into space they had avoided looking in all these years, which is why other FMCG products to have started venturing their products in “desi” space.

Is Baba Ramdev’s Patanjali a non-profitable company?

As you all know Patanjali Ayurved Limited is an FMCG company. It gains profit by selling their Varieties of like herbal products. But another important thing is the profit earned by them goes to charity.

It can be proved  by the following points:

1- He is an unpaid Brand Ambassador

2- Managing Director takes 0 salary

3- Gurukulam and Vansprastha Aashram (For Samaj Seva)

Patanjali Marketing Strategy

The 12 years old FMCG sector Company Patanjali has emerged as a prominent FMCG player in the market with a large number of products and deep assortments. Its manufacturing unit is located in Haridwar and outside India i.e.

Nepal under the trademark of Nepal Gramodyog.It is primarily in the business of minerals and herbals. 

Like other FMCG Company, it uses the mass of demographic and psychographic segmentation strategies to make its offerings appropriate/relevant to the particular set of customer groups.

It uses undifferentiated targeting strategy, as the main objective Patanjali is to offer healthy Products to all people.

Patanjali Distribution Strategy

• Patanjali used ADS(Alternative Patanjali distribution System) to create new demand.
• Patanjali centred to general trade once a sizable consumer base was generated.
• It also reduces cost by using another Patanjali distribution strategy: Primarily distribution. By setting up its stores, eliminating wholesalers. It eliminated wholesalers in the retail space too.
• Swadeshi Manufacturing
• Part of the profits going to charity
• Gaining Massive Popularity from Yog Guru Ramdev Baba
• Natural & Ayurvedic Products

Man Behind Empire of Patanjali Business Model:

Yoga guru Baba Ramdev-led company’s revenue makes it the second-largest pure-play FMCG sector giant aftermarket leader Hindustan Unilever(HUL), which had a turnover of Rs 30,783 crore in the last fiscal.

If Patanjali can double its turnover, even HUL will come within its biting distance. There is a man who knows how it can be done Acharya Balkrishna, the CEO.

A confidant of Baba Ramdev, Balkrishna holds a 94% stake in Patanjali Ayurved, but he doesn’t take home a salary. Yet, he works for 15 hours a day, even on Sundays and other holidays during the year.

He claims he hasn’t taken a single day’s leave.”I work daily from 7 am to 10 pm. While a normal person would work for 8 hours a day, I work for 15 hours through the week. I am doing the job of five people,” he says.

Challenges From Multinationals

To counter attack Patanjali Dominance in Herbal Category, Colgate launched Cibaca Vedshakti herbal toothpaste and many more products like Active salt, Active salt neem, Sensitive Clove etc.

They also brought down the prices of their products and providing promotions in the top end multifunction toothpaste segment. Colgate  India is spending aggressively on advertising. As per the Market report, Colgate India spent about 12% of its revenue on marketing compared to 9% globally.

In December 2015, Unilever acquired Indulekha Brand for INR 330 crore to step up its presence in the new and emerging categories. They relaunched Ayush Brand with a wide range of products including toothpaste, soap, handwash, shampoo and face wash in five South Indian States.

How Patanjali is planning its future:

Patanjali kickstarted the new year by foraying into the e-commerce platform and its founder Baba Ramdev has now decided to throw down the gauntlet to the firm’s strongest competitor-Hindustan Unilever Limited (HUL)

A report in The Economic Time says that Patanjali is eyeing to overtake HUL’s existing market presence.

“We have created the capacity of Rs 50,000 crore and w are racing ahead now. Our target is to beat HUL by next year,” Ramdev told the paper.

ABOUT THE TOP MANAGEMENT:

Managing Director: Acharya Balkrishna

1-Mukund Nand   

2-Ajai Kumar Arya   

3-Rakesh Mittal     

Company Secretary: Shashi Chandra Jha

2 Responses

Hey there, I really liked your article as it cleared one of my major doubts as to why does my mom goes so crazy behind Patanjali products. Really loved the marketing strategies they used to win the entire Indian market. Well, it’s one of the fastest-growing FMCG companies in India. I’m a college student who’s pursuing his career in digital marketing and I really love your blogs, they give me motivation to write!

Thanks for another informative blog. The place else could I get that kind of information written in such a perfect means? I’ve a project that I’m simply now working on, and I’ve been on the glance out for such info.

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What is Misleading Advertisements Case Involving Ramdev’s Patanjali? Why has SC Slammed Yoga Guru?

Curated By : News Desk

Edited By: Manjiri Joshi

Last Updated: April 10, 2024, 20:04 IST

New Delhi, India

The petition mentioned the instances where Ramdev called allopathy a “stupid and bankrupt science”. (PTI File)

The Supreme Court on Wednesday refused to accept the affidavits filed by yoga guru Ramdev and managing director of Patanjali Ayurved Balkrishna tendering unconditional apologies over publishing “misleading” advertisements

In a blow to yoga guru Ramdev and managing director of Patanjali Ayurved Balkrishna, the Supreme Court (SC) on Wednesday refused to accept their affidavits tendering unconditional apologies over publishing “misleading" advertisements. The court said it was “not blind" and the apologies came only when it was “caught on the wrong foot". The matter will be next heard on April 16.

ALSO READ | ‘We Are Not Blind’, ‘Will Rip You Apart’: SC Rejects Ramdev’s Apology In Misleading Patanjali Ads Case | Top Quotes

The court also came down hard on the State Licensing Authority for its inaction on the issue and said it is not going to take it lightly. “We will rip you apart. Do you have the guts to do what you are doing? You are acting as a post office," the bench said in an unusually stern reprimand."

The court also criticised the Uttarakhand government for its failure to take action against Patanjali Ayurved for violating the law.

Here’s all you need to know about the case.

WHO FILED IT?

The Indian Medical Association (IMA) had filed a petition in the Supreme Court in August 2022 after Patanjali published an advertisement titled ‘Misconceptions Spread By Allopathy: Save Yourself And The Country From The Misconceptions Spread By Pharma And Medical Industry’ (see below) .

The petition mentioned the instances where Ramdev called allopathy a “stupid and bankrupt science", and made claims about allopathic medicine being responsible for Covid-19 deaths. The IMA also accused Patanjali of contributing to vaccine hesitancy during the pandemic. The IMA stated the “continuous, systematic, and unabated spread of misinformation" comes alongside Patanjali’s efforts to make false and unfounded claims about curing certain diseases through the use of Patanjali products.

THE FIRST HEARING

On November 21, 2023, during the first hearing on the petition, Justice Amanullah orally warned Patanjali against claiming their products can completely “cure" diseases, and threatened to impose a cost of Rs 1 crore on every product for which such a claim is made.

Senior Advocate Sajan Poovayya, representing Patanjali, said there “shall not be any violation of any law(s), especially relating to advertising or branding of products manufactured and marketed by it and, further, that no casual statements claiming medicinal efficacy or against any system of medicine will be released to the media in any form", as per the order passed on November 21.

LEGALLY SPEAKING

Drugs & Other Magical Remedies Act, 1954 (DOMA): Publishing a misleading advertisement is punishable with up to six months imprisonment, and/or a fine for the first offence. On the second offence, the period of imprisonment can extend to one year.

Section 89 of the Consumer Protection Act, 2019 (CPA) states: “Any manufacturer or service provider who causes a false or misleading advertisement to be made which is prejudicial to the interest of consumers shall be punished with imprisonment for a term which may extend to two years and with fine which may extend to ten lakh rupees; and for every subsequent offence, be punished with imprisonment for a term which may extend to five years and with fine which may extend to fifty lakh rupees."

The IMA petition has also highlighted the Memorandum of Understanding signed by the Ministry of AYUSH and the Advertising Standards Council of India in January 2017, which prohibits misleading ads.

THEN WHY THE HEARING NOW?

• On January 15, 2024, the SC received an anonymous letter addressed to the Chief Justice of India and Justice Amanullah regarding the continued publishing of false and misleading advertisements.
• Taking note of it, a bench comprising Justices Hima Kohli and Ahsannudin Amanullah on February 27 issued a contempt notice to Patanjali Ayurved and its MD Acharya Balakrishna for flouting earlier orders and continuing to propagate misleading claims about curing diseases with the company’s products.
• Asking the government for details of their consultation with other ministries so far, Justice Amanullah stated: “The entire country has been taken for a ride! For two years you wait when the Drugs Act says this is prohibited?"
• The court then placed a blanket ban until further orders on any further advertising or branding of Patanjali medicinal products.
• During the next hearing, on March 19, the court was told that the reply to the contempt notice was not filed, after which it passed an order seeking the personal appearance of Balakrishna and Ramdev. It also made the Uttarkhand government a party.
• On March 21, Balkrishna issued an unqualified apology to the Supreme Court regarding alleged misleading advertisements.
• On April 2, the court strongly criticised Ramdev and Balkrishna, dismissing their apology as “lip service".
• The court gave one last opportunity to both Ramdev and Balakrishna to file a proper explanation affidavit saying the apology filed by the former was incomplete and a mere lip-service. “You yourself said that the product they come out with cannot be backed. What did you do to publicise the same with the common public," the court asked solicitor general Tushar Mehta, who appeared for the Centre. The state of Uttarakhand also filed a detailed affidavit and assured the Supreme Court that strict action will be taken against Patanjali Ayurved as per law.

Ramdev and Balkrishna tendered an unconditional apology before the Supreme Court.

“I hereby tender my unconditional apology in regard to the issue of advertisements which occurred after the statement of counsel of respondent no. 5 (Patanjali) which was recorded in the order dated November 21, 2023, which I am informed has the force of an injunction," the affidavit read.

In the short affidavit filed, Ramdev tendered an unconditional apology for the November 2023 press conference as well. “I sincerely regret this lapse and I wish to assure the court that the same will not be repeated," he said, adding, “I hereby tender an unconditional and unqualified apology for the breach of the statement recorded in para 3 of the order of this court dated November 21, 2023".

APRIL 10: SC NOT CONVINCED

“The apology is on paper. Their back is against the wall. We decline to accept this, we consider it a deliberate violation of undertaking," the bench said. “Tendering apology is not enough. You should suffer the consequences for violating the court’s order. We do not want to be generous in this case. Till the matter hit the Court, the contemnors did not find it fit to send us the (fresh apology) affidavits. They sent it to the media first. Till 7:30 pm yesterday it was not uploaded for us. They believe in publicity clearly…You are defrauding the affidavit. Who drafted it, I am surprised."

ALSO READ | Patanjali Ads: Ramdev, Balkrishna Tender Unconditional Apology Before SC

Justice Amanullah asked if the apology is “even heartfelt" to which senior Advocate Mukul Rohatgi, appearing for the Patanjali founders, said: “What else needs to be said, my lords, we will. He is not (a) professional litigant. People make mistakes in life."

After the lawyers and officers admitted that mistakes were committed and that corrective measures would be taken, the SC said: “What about all the faceless people who have consumed these Patanjali medicines stated to be cured diseases which cannot be cured? Can you do this to an ordinary person?"

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Patanjali case: SC expands scrutiny of misleading ads to include allopathic practices

The court admonished patanjali for spreading misinformation that could undermine public trust in the health care system.

The Supreme Court on Tuesday broadened its judicial scrutiny into misleading health advertisements, extending its focus from Patanjali Ayurved to include certain “alleged unethical practices” among doctors practicing modern medicines, emphasising that its actions were not targeted solely at yoga guru Ramdev and his enterprise, Patanjali, but motivated by broader concerns for public welfare.

“We must clarify that we aren’t here to gun for a particular company or authority. Our endeavour is to act in the public interest against FMCGs (Fast-moving consumer goods) and drug companies that have been misleading the public. It’s a part of the process of the rule of law,” said a bench of justices Hima Kohli and Ahsanuddin Amanullah.

As it heard a contempt case against Ramdev and Patanjali’s managing director Balkrishna on disobeying court orders that forbade Patanjali Ayurved from running misleading advertisements on health cures, the court decided to widen the scope of the matter to encompass the practitioners of modern medicine — it is often referred to as allopathy in India, who are accused of prescribing unnecessary and expensive medicines. The court highlighted allegations that some allopathic practitioners may be influenced more by pharmaceutical affiliations than by patient welfare.

Putting the Indian Medical Association (IMA) in the dock, the bench asked the association to bring on record the actions taken by it on the complaints received against doctors prescribing expensive and unnecessary medicines in lieu of valuable considerations. The IMA is the complainant in the case against Patanjali, demanding contempt action against Ramdev and Balkrishna for violating the court’s earlier directives on misleading advertisements and an undertaking given by Patanjali in this regard.

“We are of the opinion that the petitioner association also needs to put its house in order. There are several complaints of the alleged unethical activities of the members of the association regarding recommending highly expensive medicines and extraneous medicines, besides prescribing line of treatment for valuable considerations,” the bench said in its order, directing senior counsel PS Patwalia, representing the IMA, to provide necessary information on actions taken by it against its members.

While making the National Medical Commission (NMC) also a party in the case, the bench told the IMA: “While petitioners are pointing fingers at respondents, four fingers are pointing at them. If that’s happening, why should we not turn the beam at you? We can’t let the public be taken for a ride. There are children and babies involved. Your doctors also endorse medicines in the allopathic field...You have to tell us what you have done as an in-house exercise to prevent abuse. They are your members. You have to have an effective control.”

Meanwhile, senior counsels Mukul Rohatgi and Balbir Singh asked for a week more to publish a fresh public apology in the media, after the bench questioned whether the apology published by Patanjali were “as big as their advertisements” on health cures. The lawyers said they would bring on record the public apology published in 67 publications before the next hearing on April 30. In addition, they said Patanjali will also publish a fresh apology, ensuring they are suitable in size.

“Cut the actual newspaper clippings and keep them handy. For you to photocopy by enlarging, it may not impress us. We want to see the actual size of the ad. When you issue an apology, it does not mean that we have to see it by a microscope...somebody in the dock has to come clean,” it told the lawyers representing the leaders of Patanjali Ayurved.

During the hearing, the top court also made Union ministries of information & technology, consumer affairs and drug commissioners of all states and Union Territories (UTs) parties to the matter, concerns about the ethical standards of healthcare advertising and the influence of commercial interests on medical practices.

It asked additional solicitor general KM Nataraj, appearing for the Centre, to submit an explanation regarding a recommendation made by the Ayurvedic Siddha and Unani Drugs Technical Advisory Board (ASUBTAB) for the omission of Rule 170 that dealt with controlling inappropriate advertisements and was previously brought into the central government notified amendment of the Drugs & Cosmetics Rules, 1945, in December 2018.

“On one hand, your minister says on the floor of the House that you will be taking effective steps against misleading ads. On the other hand, you are amending the regulation in this regard...Can you issue a rule in violation of a statute? Is it not arbitrary or a colourable exercise of power? Will it not amount to abetting something wrong?” the bench asked the Centre.

It told the ASG that the proceedings were not limited to just one FMCG or a drug company and that the court was going “to look at the larger picture”.

“We make it clear that the proceedings are not just limited to the respondent (Patanjali) but all similarly situated FMCGs and drug companies issuing advertisements and taking the public for a ride, in particular babies, school going children, women and senior citizens,” the court said in its order.

Seeking a detailed response from the Centre, the court order cited the letter issued by the Ministry of AYUSH in August 2023 to all states and UTs, conveying the decision to accept the ASUBTAB’s recommendations, and asking the authorities not to initiate action against any entity under Rule 170 of Drugs & Cosmetics Rules.

The court asked the Centre and the states and UTs to submit their responses before May 7 when the issues regarding regulatory framework to prevent misleading advertisements and unethical medical practices will be taken up separately. It asked the state drug commissioners to also submit statistics regarding action taken against drug companies since 2018.

In a series of previous hearings on the IMA’s petition complaining against Ramdev’s contentious comments about modern medicine and allegedly misleading advertisements about Patanjali products, the Supreme Court expressed grave concern and emphasised the need for responsible discourse, especially during a pandemic like Covid-19.

The court admonished Patanjali for spreading misinformation that could undermine public trust in the health care system and had recorded an undertaking by the company in November 2023 that it would stop running any misleading advertisements and issuing disparaging statements against modern or any other form of medicine.

However, the IMA came back to the bench with a video clip of a press conference held by Ramdev and Patanjali advertisements in national media merely a day after their undertaking in the court on November 21. Additionally, the association produced a series of advertisements branding Patanjali products as cure for several ailments, including hypertension and diabetes.

Irked by the contravention of its order and its own assurance, the court by its subsequent orders of February 27, March 19, April 2 and April 10 called Ramdev and Balkrishna in person, asking them to show cause why they should not be punished for contempt of court. They have since filed a pair of apology affidavits each, but the court has not found them satisfactory and bonafide.

On April 10, the bench lambasted Ramdev and Balkrishna, refusing to accept their unconditional apology for issuing misleading advertisements and saying the judges did not want to be “so generous” after the duo were caught on the wrong foot with their “back to the wall”. On the day, it also came down heavily on the Uttarakhand government, saying the authorities kept their “eyes shut” by not cracking down on the company for violating advertising rules by making false claims about curing diseases such as diabetes and asthma.

On April 16, when the matter was heard last, the bench directly interacted with Ramdev and Balkrishna, telling them their plea of innocence or inadvertence cannot be accepted right away after they chose to flout court orders despite previous judicial warnings as it gave them a week to take suitable steps “to redeem themselves” and demonstrate their remorse.

The court also reproached the Uttarakhand officials for acting “in cahoots” and failing to register cases against Patanjali for issuing advertisements promising cure for lifestyle and other specified ailments prohibited under the Drugs and Magic Remedies (Objectional Advertisements) Act 1954, Drugs and Magic Remedies (Objectionable Advertisements) Rules 1955, and Drugs and Cosmetics Rules 1945.

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Patanjali official, two others jailed after 'soan papdi' fails quality test

In september 2019, the district food safety officer of pithoragarh collected the samples from a shop in berinag market after concerns were raised about the product..

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• Samples of Patanjali Navratna Elaichi Soan Papdi were collected in September 2019
• Test results revealed product's substandard quality
• The three accused and Patanjali Ayurveda Limited also fined

A court in Uttarakhand has sentenced a Patanjali official and two others to six months in jail after samples taken from the Patanjali Navratna Elaichi Soan Papdi (a traditional sweet) failed a quality test. In September 2019, the District Food Safety Officer of Pithoragarh collected the samples from a shop in Berinag Market after concerns were raised about the product.

The Chief Judicial Magistrate of Pithoragarh, Sanjay Singh sentenced Abhishek Kumar, Assistant General Manager of Patanjali Food and Herbal Park, Laksar; Ajay Joshi, Assistant Manager of Kanha Ji Distributor Private Limited Ramnagar; and shopkeeper Leeladhar Pathak to six months imprisonment under Section 59 of the Food Safety and Standards Act 2006.

The court fined Patanjali Ayurveda Limited and Ajay Joshi Rs 10,000 each, while Abhishek Kumar was asked to pay Rs 25,000 and Pathak Rs 5,000.

The samples collected from Leeladhar Pathak's shop on September 17, 2019 were sent to a testing lab in Rudrapur.

The test results revealed the product's substandard quality, following which the District Food Safety Officer registered cases against the three men.

The Chief Judicial Magistrate court further said that if the three accused fail to serve their sentences, they will have to serve additional imprisonment of 7 days to 6 months, respectively.

The development comes as Patanjali is embroiled in the misleading advertisements case .

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United Nations, May 28 (PTI) Major Radhika Sen, an Indian woman peacekeeper, who served with the UN mission in Congo, will be honoured with a prestigious military gender advocate award, with UN Secretary-General Antonio Guterres describing her as a “true leader and role model.” Major Sen, who served with the United Nations Organisation Stabilisation Mission in the Democratic Republic of the Congo (MONUSCO), will receive the prestigious ‘2023 United Nations Military Gender Advocate of the Year Award’ from Guterres during a ceremony at the world body’s headquarters here on May 30 marking the International Day of UN Peacekeepers.

She served in the East of the Democratic Republic of the Congo (DRC) from March 2023 to April 2024 as the Commander of MONUSCO’s Engagement Platoon for the Indian Rapid Deployment Battalion (INDRDB), a UN press release said.

Born in Himachal Pradesh in 1993, she joined the Indian Army eight years ago. She graduated as a biotech engineer and was pursuing her Master’s degree from IIT Bombay, when she decided to join the armed forces.

She was deployed to MONUSCO in March 2023 as the Engagement Platoon Commander with the Indian Rapid Deployment Battalion and completed her tenure in April 2024.

Major Sen is the second Indian peacekeeper to receive this prestigious award after Major Suman Gawani, who had served with the UN Mission in South Sudan (UNMISS) and was honoured with the 2019 United Nations Military Gender Advocate of the Year Award.

Congratulating Major Sen for her service, Guterres said she is a “true leader and role model. Her service was a true credit to the United Nations as a whole.” He further said in a statement that in an escalating conflict environment in North Kivu, her troops actively engaged with conflict-affected communities, including women and girls. She earned their trust, doing so with humility, compassion, and dedication.

The statement added that upon receiving news of the award, Major Sen expressed her gratitude for being selected and reflected on her peacekeeping role.

“This award is special to me as it gives recognition to the hard work put in by all the peacekeepers working in the challenging environment of DRC and giving their best to bring a positive change in the society,” she said.

“Gender-sensitive peacekeeping is everybody’s business – not just us, women. Peace begins with all of us in our beautiful diversity!” Major Sen led mixed-gender engagement patrols and activities in a volatile environment, where many people, including women and children, were leaving everything behind to flee the conflict, the statement said.

Created in 2016, the United Nations ‘Military Gender Advocate of the Year Award’ recognises the dedication and efforts of an individual military peacekeeper in promoting the principles of UN Security Council Resolution 1325 on Women, Peace and Security.

Created by the Office of Military Affairs within the Department for Peace Operations (DPO), the Award recognises a military peacekeeper who has the best integrated a gender perspective into peacekeeping activities. Each year, the awardee is selected from among candidates nominated by Force Commanders and Heads of Mission from all peace operations, according to UN Peacekeeping.

India is currently the 11th largest contributor of women military peacekeepers to the United Nations with 124 now deployed. India has traditionally been among the largest troop and police-contributing countries to UN peacekeeping missions. PTI YAS NPK NPK NPK

This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.

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