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Patanjali doing what Amul has done for last 70 years; do not see threat from it: Amul MD

The Financial Express logo The Financial Express 21-04-2017 FE Online

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Stating that Patanjali is doing what Amul has done for last 70 years, Amul MD RS Sodhi does not see any threat from Baba Ramdev's Patanjali. In an interview with business channel ET Now he said, "I do not see a threat from Patanjali as business opportunity is still very huge in India".

Speaking about the success of the FMCG company Sodhi said that "Patanjali is doing reasonably. There is enough room for companies to grow in the consumer segment." Recently, an ASSOCHAM TechSci Research paper said that Patanjali Ayurveda has turned out to be the most disruptive force in India's fast moving consumer goods (FMCG) market.

Patanjali CEO Acharya Balakrishna yesterday said that it aims to clock double-digit growth in FY18. Earlier this month, Patanjali Ayurved told ET Now that it is focussing only on the domestic market currently and not looking at the international market with vigour. The FMCG company also ruled out any plans for IPO. "There are no plans for an IPO yet," it said. Talking about the company strategy it said, "We will be bringing on board new products. We have also developed a new market called Ayurveda."

Meanwhile, talking about Amul's success, Sodhi said that the company has earned consumer faith from experience over last 70 years. "I believe consistency in communication is the major reason for Amul's success". When asked about the advertisement strategy he said that advertisements need to be mostly centered around the consumers. "Brands are moving away from rational advertising form. I do not believe 'soap opera' form of advertising will add value to brands". "Patanjali is doing logical & rational advertising which any other Indian company would do," he added.

Patanjali is among the top advertisers in the country. Of the total 1.14 lakh insertions last year, 84% were on news channels and nearly 99% on Hindi news channels. That's one way of reining in costs since this genre is cheaper than GECs (general entertainment channels) but it also means missing out on a core audience. The rest of the FMCG pack relies on entertainment channels to sell their products because news channels have a relatively small share of the viewership pie - English news at 0.03%, Hindi news at 3% and regional news at 3.5%, as per KPMG-FICCI.

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(File video, provided by NDTV)

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