Sri Sri Ayurveda is all set to take the FMCG industry by storm with launch of 1,000 retail stores
Patanjali Ayurved Ltd, the manufacturer of herbal products, founded by yoga guru Baba Ramdev now has competition from another spiritual guru – Sri Sri Ravi Shankar.
Art of Living Foundation’s FMCG arm, Sri Sri Ayurveda is all set to take the FMCG industry by storm with the launch of about 1,000 retail stores, reflecting the increasing demand for herbal products across India.
Sri Sri will also launch clinics and treatment centres in a resemblance to the retailing strategy of Baba Ramdev-led Patanjali.
The debut list of products will include toothpastes, detergents, ghee and cookies. “People have now accepted ayurvedic products in their daily lives, and we believe our brand offerings are different compared to those of existing players,” said Tej Katpitia, chief executive of Sri Sri Ayurveda (SSA) Trust told Economics Times.
SSA will open ‘Sri Sri Tattva’ branded stores.
“The first store will be launched next month with plans to open 50 doors by November. The aim is to have a billion-dollar business in the next few years,” said Gaurav Marya, chairman of Franchise India Holdings.
Earlier this year, Sri Sri Ayurveda introduced spices and organic staples in the Indian market.
Sri Sri Ayurveda’s entry into the Indian market
Sri Sri Ravi Shankar entered the FMCG space with the launch of his company Sri Sri Ayurveda (SSA) in 2003. The company ocuses on Ayurvedic products across categories such as breakfast cereals, health drinks, oil, spices, personal care, oral care, cookies and ready-to-cook items.
Currently, SSA has 30-35 products on offer in the market, ranging from shampoos, creams, toothpaste, soaps, honey and ghee among others.
Expansion Plans of Sri Sri Ayurveda
The Bengaluru-based company, which had launched its health drink brand Ojasvita, endorsed by Olympic silver medalist P V Sindhu and National badminton coach Pullela Gopichand, is currently selling products through 600 franchised stores, but plans to open 2,500 outlets in India in 2017. Besides, SSA already has an online presence and sells products through its websites.
SSA’s online portal, Sattva Store, also offers apparel, wellness and personal care products, food, and handicrafts, among other things.
A 2016 report by brokerage house Edelweiss said SSA is riding on the brand equity of its founder and has a huge captive base — 370 million followers across the world. But the company’s muted success to date is due to limited distribution and brand visibility. SSA is beginning to use mass media, point of sale advertising and decent digital presence, including Amazon, Big Basket and its own website.
The company, which has three factories at present, is already a global brand. Apart from India, it is present in countries like Singapore, US, Malaysia, Oman, Canada, South America and Brazil to name a few.
Patanjali’s competition grows
Patanjali’s rise to a Rs 10,000-crore company in less than a decade has made most MNC rivals shift their focus to the herbal sector.
Hindustan Unilever has relaunched Ayush brand of ayurvedic personal care products. Similarly, L’Oreal launched a hair-care range under the Garnier Ultra Blends made with natural ingredients.
Dabur launched India’s first ayurvedic gel toothpaste under the Dabur Red franchise.