Baba Ramdev plans to disrupt this sector after Patanjali floors FMCG

Riding on the back of Baba Ramdev’s popularity, Patanjali has been able to turn some stones virtually into gold over the years in the FMCG industry. The company disrupted the FMCG market like no one else had done before, taking on MNCs and beating them at their game. Looks like the Patanjali king has found a new sector to disrupt now! Patanjali is targetting the Khadi market and this should give sleepless nights to the likes of Fabindia and even state-owned Khadi and Village Industries Commission (KVIC). It has been revealed that Patanjali is prepping to enter the Khadi sector soon.

Acharya Balkrishna, chief executive officer of Patanjali Ayurved, told The Print that, “We will sell khadi products including kurtis, suits and jackets at the Patanjali Khadi outlets to be opened by November, specifically in tier 2 and tier 3 cities.” The company plans to launch some 100 exclusive retail outlets to sell its ‘swadeshi’ line of branded Khadi clothes by Diwali this year. 

Reportedly, Patanjali’s foray into the market is expected to add muscle to KVIC, which is in the midst of a turf war with ethnic-wear retailer Fabindia and other smaller brands, in the market for handloom, hand-woven and hand spun khadi products.

Furthermore, the report mentioned that, Patanjali is also looking to join hands with KVIC to sell its products, the company has also made its displeasure at Fabindia’s dominance of the Indian khadi market quite plain.  

Ramdev had said two years ago when Patanjali had launched its denims that, “If khadi products are being sold by foreign companies like Fabindia in our country, it is the political murder of Mahatma Gandhi and his ideology,” reported The Print. 

Patanjali, which entered FMCG market in 2006, has given sleepless nights to major players like Colgate Palmolive, Hindustan Unilever, Nestle, Dabur and Emami. The company produces  products in the categories of personal care and food.

It manufactures more than 900 products including 45 types of cosmetic products and 30 types of food products. 

The method to beat these big FMCG players has been simple for Patanjali as it sells these products at cheaper rate compared to rivals and tom-toms the catch-phrase that they are good for everyone's health, plus that it is all done in the name of swadeshi. 

Patanjali last year announced that it has a turnover of over Rs 20,000 crore, despite hiccups from GST. Also, the company is confident it will resume its growth path in the ongoing fiscal. In FY17, Patanjali recorded a turnover of Rs 10,561 crore, registering a 111% growth.