Patanjali to restructure its supply chain in order to increase its sales

India: In order to cater to the demand of its products, Patanjali has planned to tie-up with a number of carrying & forwarding agencies to set up depots across India. This would help the company in reducing the intervention by super stockists and would reduce the time of the supply chain. The company has also planned to add more than 1,000 megastores of its own, which would increase its megastores count to 6,000 and the distributor count to 4,500. The company has plans to achieve a growth target of 100-200% in the next 5-10 years.  

According to TechSci Research, Patanjali, manufactures a range of products from personal care to health and its products have witnessed a huge demand among the consumers in India, which has resulted backlog and delay witnessed in supply chain. The company’s plans to restructure its supply chain will reduce the time and cost spent, thereby reducing its operational expenses.

According to a recent report published by TechSci Research, “India Ayurvedic Products Market By Product Segment, By Organized vs. Unorganized, Competition Forecast & Opportunities, 2011 – 2021”, the country’s Ayurvedic products market is projected to register a CAGR of 16% during 2016 - 2021. Growth in the market is anticipated on account of rising consumer awareness about natural treatment options, increasing online availability of Ayurvedic products and growing number of companies introducing Ayurvedic nutraceuticals and dietary supplements. India Ayurvedic products market is dominated by Ayurvedic personal care products segment, which had a revenue share of more than 60% in 2015. Demand for Ayurvedic products is predominantly concentrated in the country’s south and north regions, wherein north region is emerging as the fastest growing regional market for Ayurvedic products. In 2015, both of these regions cumulatively accounted for nearly two-third of the revenue share in India Ayurvedic products market.