Sep 16, 2016

Baba Ramdev- Acharya Balakrishna duo formula dominates FMCG sector in India

India LIVE Today

Mumbai, Sept 15: Baba Ramdev and his brand Patanjali Ayurved had paved way to headlines as it announced the launch of Jeans under the brand. Patanjali, set up merely a decade ago, is on the peak of success with two biggest achievement.

Patanjali Ayurved had trumped after it was named as the third largest seller of FMCG products challenging multinational companies including Nestle and P&G. To add more colour to the victory, Baba Ramdev’s close aide Acharya Balkrishna has entered the coveted Harun India Rich List 2016 as a billionaire with a personal fortune of Rs 25,600 crore.

It is doubtless that the man armed with flexible Yoga skills and dressed with saffron robes, Baba Ramdev, is the key to success. The endorsement and the popularity of the Yoga Guru have made the multinational companies to rethink their marketing strategies and regain the market in FMCG sector.

Over the last couple of years, Patanjali Ayurved has broken all the conventional market to emerge as a leader in the brand. According to the financial reports of FY 2016 Patanjali has crossed Rs 5000 crores.

When he opens his eyes, the lopsided smile and the mischievous glint in the eyes are gone. “When I went to the Himalayas in my youth, I saw many sadhus who had given up the materialistic life. But what were they doing? Nothing for the welfare of mankind. That cannot be the purpose of life. In India, it’s believed that sadhus can’t do anything; they are supposed to live on donations. It hurt me. The real goal of a sadhu is not to attain moksha for himself but to serve the masses. My business is not for profit but to spread wellness,” as said to India Today by Baba Ramdev, 48, India’s most celebrated yoga guru, who is riding high on a heady, hitherto untasted cocktail of yoga, satsang, ayurveda, business and politics.

Balakrishna: Baba’s trusty

Balkrishna Suvedi aka Acharya Balakrishna, is born to Nepalese parents who later migrated to India, and associated with Ramdev as his junior in Khanpur Gurukul in Haryana.

Balakrishna is the man who owns at least 93 per cent stake in Patanjali Ayurved and heads 34 companies and three trusts associated with Ramdev under the Patanjali banner. Interestingly Patanjali claims that Balakrishna is said to be the brain behind rediscovering ‘Sanjeevani Bhooti’- the famed herb that rescued the life of Lakshmana in the myth Ramayana. This is one among the major achievements of the brand.

Police had earlier booked him under cheating and criminal conspiracy charges for procuring fake degrees to acquire an Indian Passport. He was charged with cheating and criminal conspiracy for procuring fake degrees to acquire an Indian passport. His ‘Purv Madhyma’ high school degree and ‘Shastri’, a Sanskrit degree from Sampurna Nand Sanskrit University do not exist on the university records. Balkrishna disappeared in 2012 after CBI summoned him in a forgery case and the Enforcement Directorate later registered a case against him under the Prevention of Money Laundering Act for alleged illegal remittances. The cases were closed after the NDA government came to power in 2014.

Presently Acharya is part of an active campaign against MNCs and pushing swadeshi products in the market. However, he is aware of the fact that the campaign would eventually boost the business of ‘Patanjali Ayurved’.

More importantly, Balkrishna has positioned Patanjali’s non-innovative products under a very competitive price structure with a natural, herbal and ayurvedic branding.

Using Ramdev’s popularity, the duo has maintained a clear and strong single brand value proposition that has made Patanjali Ayurved a self sustaining entity and earned the company huge profits. The two claims all profits are channelled for charity and larger good of the society.

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