Hamdard, which also manufactures 'Chyawanprash' among other health supplements, is evolving into a company which provides holistic healthcare solutions to consumers.
Both companies are making a bid for a share of a product category in which the other dominates. Is a royal battle on the cards?
The FMCG major had last year entered the Chyawanprash segment with the launch of Saffola Arogyam Chyawan Amrut Awaleha. However, it had limited success with the product despite ruffling feathers of the likes of Dabur.
In an interview with Moneycontrol, Dabur India CEO Sunil Duggal welcomes Patanjali's growing prominence in the Ayurveda segment, saying it will help open up the market.
Demand, which continues to be weak, will improve only in the second half of FY17 on the back of pay hikes, monsoon and 24x7 opening of shops, says Lalit Malik, CFO of Dabur India.
Analysts polled by CNBC-TV18 see volume growth at 1-6 percent volumes and price/mix-led growth 2.5 percent, due to competitive pressures and Nepal issues. Analysts expect a hit of Rs 40-50 crore hit on top line owing to Nepal issues. Late winter likely to impact demand for Chyawanprash.
A report by brokerage firm IIFL claims the company is on course to clock revenues of Rs 20,000 crore by 2020, something that can have profound implications for both the fast-moving consumer goods (FMCG) industry at large and several listed players in particular.
Dabur Ratnaprash SugarFree is priced at Rs 305 for 450 gm pack and Rs 590 for 900 gm jar.
In case the winter sets in properly then the company expects products like Boroplus, Chyawanprash, lotions to do well and aid growth in coming quarters, says NH Bhansali of Emami Group.
The fast moving consumer goods company expects steady growth in all categories for FY14, says Dabur India's Lalit Malik.