Patanjali Ayurved Limited – Company Analysis by Ken Research

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Patanjali Ayurved Limited Company Analysis By
Ken Research
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• Patanjali Ayurved Limited (PAL),
  registered under the companys act 1956 with its
  registered office at New Delhi and three
  manufacturing units at Haridwar, Uttarakhand. The
  manufacturing units in Haridwar have the capacity
  to process ton of raw materials, rolling out
  products in medicine, food, cosmetics and
  toiletries. As part of the companys future
  strategy to increase supply and target a larger
  customer base, PAL plans to set up manufacturing
  units in each State with an investment of about
  INR million to INR million. Patanjali
  products were available only in Patanjali branded
  stores and arogya kendras. However, since of
  FMCGs are bought from mom and pop stores, they
  have appointed around distributors to penetrate
  these outlets. In addition to this, PAL has also
  tied up with modern retailer Future Group in
  order to further Plan to roll out more in
  Uttarakhand, Uttar Pradesh, Bihar, Jharkhand,
  West Bengal, Chhattisgarh, Assam and Rajasthan.

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• The setting up of this food park
  helped them source raw material directly from the
  farmers and cut out the middle men. The food park
  is estimated to give healthy life to 400 million
  people and the propensity to reach 700 million
  people. The main objective of this park is to
  ease the supply of products to people in a way
  that farmers earn profit. It is swami Ramdevs
  dream that farmers and labourers become self
  reliant and self-sufficient. Patanjali has the
  aim to expand pan India due to which the company
  will be tapping on the franchise model to grow
  its network. As of February 2016, Patanjali has
  5,000 franchise outlets and hopes to add another
  1,000 more by the end of FY2016. To open a
  franchise outlet of Patanjali, one has to invest
  INR 0.7-1.5 million, depending on whether they
  open a Arogya Kendra (health and wellness centre)
  or Swadeshi Kendra (non-medical outlet). The area
  prescribed for these centers would range from 300
  to 2,000 square feet.

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• Financial and Operating Performance of Patanjali
• The revenue from the sale of PAL products
  increased from INR million in FY2010 to INR
  million in FY2015, achieving a CAGR of during
  the same period. Personal Care segment
  contributed the highest to PALs revenue ( ),
  amounting to INR million in FY2015. Nutrition
  and supplements came in second with a percentage
  of and added INR million to PALs overall
  revenue. PALs budding grocery segment accounted
  for a share of of total revenue, amounting to
  INR million in FY2015. Home care ( ),
  Ayurvedic medicines ( ) and Health Care ( )
  contributed INR million, INR million and INR
  respectively, to the overall revenues of the
  company. The sale of books, CDs, Mp3, DVDs and
  VCDs are classified under the others category
  and accounted for of PALs overall revenue,
  amounting to INR million in FY2015. PAL
  received one of its highest revenue from the city
  of Mumbai, accounting for of overall revenue,
  amounting to INR million in FY2015. Delhi
  accounted for of PALs revenue, amounting to
  INR million in FY2015. With a strong
  population base of 62.7 million (2013) and a
  rising per capita income, Gujurat has managed to
  contribute to PALs revenues, amounting to INR
  million in FY2015. Bangalore and Pune had
  contributed and respectively, to PALs
  overall revenue, accounting to INR million in
  FY2015.

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• A major portion of online
  sales come from north and west India and PALs
  online website accounted for only of total
  revenue, amounting to INR million in FY2016. A
  large number of Patanjali products are still
  available on the website of online retailers and
  hence their contribution to overall revenue
  accounted for , amounting to INR million in
  FY2016. Offline stores have accounted for of
  PALs overall revenue in FY2016 amounting to
  INR million Offline stores include Patnjali
  owned retail outlets, franchisee stores, modern
  retail outlets and kirana shops (mom and pop
  stores). A surge in demand for Patanjalis
  personal care products amongst the young female
  population has resulted in the company generating
  revenues of INR million from individuals aged
  between 25-50 years.

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• To know more on the Patanjali Ayurved Limited,
  click on the following link
• https//www.kenresearch.com/consumer-products-and-
  retail/cosmetics-and-personal-care/patanjali-compa
  ny-report/39455-95.html
•  
• Contact
• Ken Research
• Ankur Gupta, Head Marketing Communications
• query_at_kenresearch.com
• 91-124-4230204

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