Patanjali: From Nowhere to $1 Billion


Case Study Title: Patanjali: From Nowhere to $1 Billion

Year of Publication: 2017

No. of Pages: 20 (Twenty Pages)


Patanjali Ayurveda was founded by Baba Ramdev and Acharya Balkrishna in 2006. In FY2016, Patanjali reported revenues of $740 million (Rs.5,000 crore). It is in the direction of achieving a revenue target of $1.5 billion (Rs 10,000 crore) in FY2017. It was a company run by 200,000 sadhus and acharyas with Indian philosophy. Its unique marketing strategy was threatening MNC FMCG players in India. It is not only the low cost strategy but also a varied pricing strategy. Patanjali spent Rs 300 crore on TV commercials between November 2015 and March 2016. Dabur and Himalaya Drug Co. were also built on “Ayurveda”; however they could not catch up to Patanjali. As on July 11, 2016, Patanjali has partnered with BizBazar and Reliance Retail. This case describes its unique marketing strategies, sales and pricing strategies, organization structure, catchy advertising and promotion, competition in FMCG sector, partnerships, and controversies in the journey and their plans ahead in their $1 billion business.

Keywords: Patanjali, Marketing Strategies, Sales and Pricing, Competitive Strategies, Advertising and Promotion, FMCG, Partnerships, Controversies