Moneycontrol
Jun 16, 2017 02:25 PM IST | Source: Moneycontrol.com

Marico chief Harsh Mariwala dubs Patanjali as 'most overhyped brand' in India

FMCG major Marico's founder Harsh Mariwala has termed Patanjali “the most overhyped brand in India", expressing skepticism about its success in future.

Marico chief Harsh Mariwala dubs Patanjali as 'most overhyped brand' in India

Moneycontrol News

FMCG major Marico's founder Harsh Mariwala has termed Patanjali “the most overhyped brand in India", expressing skepticism about its success in future.

The seasoned businessman said believes Patanjali would prosper only in select categories since it had fared better with products such as ghee, atta, and toothpaste. The reason behind is that such products had a “stronger” association with the brand, he said in an interview to the Mint.

Though Mariwala had a word of praise for Patanjali as the company has brought out various products covering the entire range of FMCG basket, the brand would not succeed in every category. Presently, Patanjali Ayurved has ventured into all possible spaces within the FMCG sector including personal care, healthcare, and processed food.

Earlier in February, Mariwala had said Patanjali’s edible oil would not affect Marico’s Saffola, as theirs was a “premium” brand. Patanjali has also brought out parallel products to hair oils and body lotions offered by Marico-owned Parachute, Nihar Naturals, and Hair & Care.

Colgate, the dominant player in the toothpaste market, has suffered a reduction of market share from 57.4 percent to 55.1 percent because of Patanjali and Dabur. The two brands enjoyed an upper hand in competition as their ayurvedic products are taxed at a lesser margin. With the implementation of GST, the products will see a rise from 8-9 percent to a new 12 percent tax.

In 2016, Patanjali made headlines by emerging as the third-largest seller of FMCG products at outlets of Future Retail. It ranked just after the leading Hindustan Unilever Ltd and P&G.

With Baba Ramdev’s aim to dismantle MNC hegemony, his Patanjali products are giving the industry a hard time. In FY16, the company’s turnover was over Rs 10,000 crore, according to Ramdev.

While most ayurvedic and herbal brands, including the medium range Khadi, have premiere products meant for deep pocketed consumers, Patanjali offers a much more affordable alternative.
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