Baba Ramdev And His 2, 000 Crore Empire


Baba Ramdev is on a mission and it’s about time we take note. The yoga guru keeps adding extra commas to his bank account year after year. Apart from disseminating knowledge on inner peace, Baba also runs a highly successful FMCG (fast moving consumer goods) business. Ranging from cornflakes to soaps, Ramdev and his team specialize in a wide array of consumer goods. His USP? Every product that he sells is laced with his magical and spiritual blessings.

According to the Times of India, Patanjali Ayurved, the company that manufactures the products racked up an impressive turnover of Rs 1,200 crore in 2014. The numbers are showing no signs of slowing down. Back in 2013, his empire’s turnover was at Rs 850 crore. Do the math and you will realize how far he and his team have come from their humble beginnings.  Born in the Mahendragarh district in Haryana, Ramdev studied yoga and Sanskrit in various gurukuls around his home. He used to offer free yoga classes to villagers before he realized that he was pretty good at it.

One of the surprising elements of his brand’s success is that, he hardly spends any money on advertising. Unlike other conglomerates who spend an average of 20 percent on advertising, Baba has an enormous group of loyal followers who swear by his products and advice.  You can also find his products in Reliance retail stores across the country. Hence, his revenue stream benefits from minimal spending on the promotion of his products.

A great entrepreneur is one who embraces the latest technology for his business and Baba Ramdev has done just that. Taking advantage of the e-commerce boom, one can also buy his products online at websites such as BigBasket.  Several e-commerce giants were apprehensive to stock Ramdev’s products initially due to the distinctive customer profile. However, they soon realized that his empire is here to stay and now several websites stock his products.

Modern retail currently contributes about 3 percent of total Patanjali sales with only 30 SKUs (stock keeping units),” said Pittie (CEO of the Pittie Group).”The target is Rs 500 crore annually,I am now talking to Amazon which has started a new food and grocery gourmet category”.

I guess it wouldn’t be too farfetched to consider Baba Ramdev speaking to budding IIM graduates at some business seminar soon. You can have your opinion on Baba Ramdev and his yoga techniques, but there is no denying that the man has a sharp business mind.

Somesh Chandran

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