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Patanjali Products Now Used By Half Of India’s Urban Households

Consumer demand for food was in double digit in July

Patanjali Products Now Used By Half Of India’s Urban Households

Patanjali Ayurved Ltd. products are still largely used by urban households even though its rural reach is also increasing.

About 55 percent of urban households used ayurveda company’s products as of July, up from 33 percent a year ago, K Ramakrishnan, country head of consumer insights company Kantar Worldpanel, told BloombergQuint in an interview. Rural penetration doubled to 27 percent during the period.

“The distribution of Patanjali products through their stores still remains urban,” Ramakrishnan said. “Rural is a very high-investment distribution game which probably they have not yet reached. When they reach that, they will see bigger growth.”

The Baba Ramdev-led company has products in over 50 categories, with oralcare and haircare products being the top contributors. The ayurveda company clocked revenues of Rs 10,561 crore in the year to March, with toothpaste’s share at Rs 940 crore and Keshkanti shampoo accounting for Rs 825 crore.

July Trends

Demand for fast-moving consumer goods products was higher in rural India in July at 9 percent compared to 3 percent for the urban market, according to Kantar Worldpanel.

The highest growth came in foods, which was close to double digits for both branded and unbranded categories. Staples saw a strong growth of almost close to 10 percent, Ramakrishnan said. Homecare and personal care categories grew at three percent each, he said.

Certain items within these categories, like hygiene products floor cleaners, toilet cleaners and handwash, also saw growth, he said.