the economic times | mumbai | friday | 5 may 2017 brands ... · new delhi cyber hub in g urgaon, o...
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FY18 OutlookExpand headcount 5Xto 5 lakh within a year
Double distributor strength to 12,000
Invest `5,000 cr for5 new plants
In the process of setting up restaurant chain
Create new packaged food verticals
Scale up business in various categories
So far, FMCG has meant MNCs in India… we have broken that monopoly
We have world-class quality, affordable prices, and are ploughing back profi ts for product innovation
ARINDAM
Atta brought in sales of `407 crBreakfastcereal a `100crplus brand
Dant Kanti a `940 cr brand with 14% share
Herbalsoap didsales of `574 cr
Honey turnover `350 cr, has ‘potential to touch `500 crthis year’
Kesh Kanti sales of `825 cr;15% share
The Money Spinners in FY17
Our Bureau
New Delhi: Baba Ramdev’s Pa-tanjali forecast its turnover todouble this fiscal year, after thecompany that sells everythingfrom shampoos to biscuits, no-odles and dairy products re-ported revenue of `̀10,561cro-re for the year ended March31, 2017.
The Haridwar-basedcompany expects to ex-pand its headcount five-fold to five lakh within ayear, and become the co-untry’s biggest swades-hi brand in two years. Itis also in the process of set-ting up a restaurant chain,Ramdev said.
“So far, FMCG has meantMNCs in India; we have brokenthat monopoly,” the yoga gurutold a press conference here onThursday. “Global CEOs are
sleeping pea-cefully sayingPatanjali’sshare marketis small. Butthat is nottrue. We are le-aders in manycategories al-ready.”
He cited ho-ney and gheeas categorieswhere Patan-
jali is the market leader.Patanjali has no plans to list as
of now and will continue to beheaded by a “sanyasi and not abusinessman even after me”,Ramdev said.
In the past fiscal year, the con-sumer products business un-der Patanjali Ayurved contri-buted `̀9,634 crore to the turno-ver. Sales from Divya Pharma-cy, which makes ayurvedicmedicines, were ̀̀ 870 crore.
The yoga guru said Patanjali’soral care brand Dant Kanti hasa 14% market share, with salesof `̀940 crore. “We don’t knowwhen Colgate will close its ga-te... they have already deg-rown,” he said.
An email seeking commentfrom Colgate-Palmolive elici-ted no response till press time.
On how the company plannedto double turnover at a timewhen growth of consumer go-ods has slowed considerably,
Ramdev said: “Even last yearthere was a slowdown. But wekept growing and will continueto do so.”
Most global consumer goodsfirms in India, from Colgate toHindustan Unilever to LÓreal,have acknowledged the threatof home-grown Patanjali. Tooffset that, they have launchedproducts under the herbal ay-urvedic portfolios. Ramdev sa-id Patanjali would double itsdistributor strength to 12,000within a year and invest `̀5,000crore for five new plants.
Comparing his products toglobal brands in the country, hesaid: “We are not a corporatehouse. We have world-class qu-ality, affordable prices, and areploughing back profits for pro-duct innovation. We don’t haveany hidden agenda; our goal isnot to earn profits.”
Patanjali plans to create newpackaged food verticals andscale up the business in catego-ries such as atta, biscuits, edib-le oils, rice, ghee, pulses, spicesand juices, he said.
Citing more numbers for theyear 2016-17, he said the KeshKanti hair care was a `̀825-cro-re brand with close to a 15%market share, while its herbalsoap did sales of `̀574 crore. Pa-tanjali honey brought in salesof `̀350 crore and has potentialto touch `̀500 crore this year.For atta, he said, sales touched`̀407 crore, while in breakfastcereal, Patanjali was a ̀̀ 100-cro-re-plus brand.
Patanjali at .̀ 10k-crRevenue, Aims toDouble it in a YearCo to start restaurant chain, invest .̀ 5k cr in new plants: Baba Ramdev
Most globalconsumergoods firms inIndia, fromColgate to HULto LÓreal,haveacknowledgedthe threat ofhome-grownPatanjali
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8 �THE ECONOMIC TIMES | MUMBAI | FRIDAY | 5 MAY 2017Brands: Creating Desire
Kolkata: Come June, the newowners of Nokia and Black-Berry are going to invest `̀200crore each to re-enter the Indi-an smartphone market tryingto build on the nostalgia of con-sumers, said two senior in-dustry executives.
Finnish start-up HMD Global,which has the Nokia brand li-cence, will launch its iconic fea-ture phone 3310 later thismonth. However, the companyplans to use the model as a stra-tegic move to re-build the buzzaround the brand with limitedsupplies to the trade since itwants to push sales of itssmartphones. The companyplans to launch three smartp-hone models including makingthe mid-end Nokia 6 online ex-clusive, the executives said.
The BlackBerry brand licenceowner in India, Optiemus Gro-up, will spend `̀200 crore to re-launch the brand and will initi-ally target enterprise customersand selling through retail cha-ins before expanding penetra-tion in the market, said chair-
man Ashok Gupta. The compa-ny will launch one model at sub-`̀40,000 next month and anotherat sub-`̀20,000 in July, he said.
Gupta said the company willlaunch BlackBerry through4,000 retailers which includesthe retail chains and even thepremium neighbourhood sto-res. “We are expecting ̀̀ 2,000 cro-re sales in this fiscal,” he said.
The attempts to re-enter Indiaby these two legendary brandscome at a time when the marketis dominated by Samsung andthe Chinese brands such as Op-po, Vivo, Xiaomi, Lenovo, Moto-rola and Gionee. Samsung andthe Chinese brigade togethercontrol more than 70% of the In-dian smartphone market.
Nokia will market its handsetson the durability factor whichwas associated with the brandand guaranteed software upda-tes, BlackBerry will build thesecurity buzz of smartphones.This is at a time when the Chine-se brands are trying to capturemarket on the selfie craze.
Both the brands will also manu-facture its line-up in India. WhileBlackBerry will be manufactu-red in Optiemus’ own plant, No-kia has started manufacturingof 3310 and plans to make thesmartphones too through Fox-conn in India. Both handsetbrands will run on Google’s An-droid operating system.
A HMD spokesperson saidthat a significant portion of its$500 million marketing spendwill be in India.
HMD Mobile India vice presi-dent Ajey Mehta recently toldET that the company plans to ro-pe in over 400 distributors whocan reach out to the nook andcorner of the country and set up300 service centres. It also hasplans to set-up exclusive brandstores. “We will not be the chea-pest smartphone brand but ourpricing will be benchmarkedagainst competition,” he said.
BETTING ON NOSTALGIA
Nokia, BlackBerry to MarkReturn with .̀ 200-cr BetsNokia brand ownerto launch 3310 soon,BlackBerry’s to targetenterprise segment
NOKIA OWNER HMD Glob-al to launch iconic 3310 handset later this month
PLANS TO launch 3 smart-phone models including mid-end Nokia 6
BLACKBERRY INDIA owner Optiemus Group targets `2,000-cr sales this fi scal
TO LAUNCH sub-`40,000model next month, sub-20,000 handset in July
BOTH THE brands will manufacture their line-up in India
Back in Indian Stores
� Cyber Hub StartsServing Liquor Again
NEW DELHI Cyber Hubin Gurgaon, one of thebiggest and mostpremium liquor and
food destinations the country, hasbeen granted permission to serveliquor once again starting Thurs-day evening, more than a monthafter it was banned following aSupreme Court order, reportsRatna Bhushan. “The vibe of
Cyber Hub had gone missing andwe are glad that bars and restau-rants will be back to business,”said Pushpa Bector, executive VPat DLF Utilities that owns thepopular hangout.
� Vistara Posts 80%Passenger Growth
NEW DELHIVistara onThursday said theyhave registered ayear-on-year growth
of 80% in passengers flown duringthe first four months of 2017,reports Our Bureau. Vistara flew1.15 million passengers between
January and April 2017, compa-red to 640,000 during the sameperiod the previous year, on theback of a 44% increase in fleet.
� Emami Q4 NetDeclines Marginally
KOLKATA Net profit ofFMCG company Emamideclined 1.98% at`̀68.65 crore during
the fourth quarter of last fiscal.Turnover also declined marginal-ly by 2.1% at ̀̀ 527 crore as against`̀539 crore in the previous cor-responding quarter, the companysaid in a statement.
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