Patanjali Ayurved: Will the Growth Momentum Sustain?

Patanjali Ayurved (Patanjali) was established in the year 2006 as a private limited company. The company was later converted into a public limited company in the year 2007 to facilitate speedy expansion. The main objective of the company was to make and sell FMCG, herbal, and ayurvedic products at a cheaper price than competitors. It was founded by Acharya Balakrishna (Balakrishna), a long-term companion of the yoga guru Ramdev. The association between Ramdev and Balakrishna began in the early 1990s, when together, they set up a company called Divya Pharmacy that sold ayurvedic products. Subsequently, Balakrishna helped Ramdev set up a number of companies like Patanjali Bio Research Institute, Patanjali Food and Herbal Park, Patanjali Yogpeeth Trust, Patanjali Gramodhyog, etc. and served in senior managerial roles in these. Most of these companies manufactured ayurvedic products or were involved in the promotion of ancient Indian practices like yoga. Balakrishna had a master’s degree in Sanskrit literature and wanted to popularize the ancient tradition of ayurveda by making the best use of the latest technological advancements. With Patanjali, Ramdev and Balakrishna wanted to give an indigenous option to Indian customers and to directly compete with MNC FMCG companies that operated in the country...