Hindustan Unilever is Launching Ayurvedic Products

India: India's largest consumer goods company, Hindustan Unilever is launching a raft of Ayurvedic personal care products with an aim to challenge the product portfolio of Baba Ramdev-led Patanjali, as Patanjali has proved itself as a successful challenger to many multinational companies operating in India. Within a decade Patanjali has become a USD769.23 million company and the company has caught the attention of all FMCG giants.

Hindustan Unilever, the maker of Dove, Lux and Rin, will launch around 20 products under its existing Ayurveda brand Ayush and the Ayurvedic product portfolio will include skin cream, toothpaste, shampoos and soaps. The Ayurvedic brand Ayush was launched in year 2001 as a premium brand but the brand lost its momentum by 2007. Presently, the company will position and target mass market for which the prices of the products would range between USD0.46 and USD2.0 

The Hindustan Unilever's personal care business accounts for around half of its sales and nearly 60% of its profits are mainly due to a large portfolio of premium products. Moreover, the Ayurvedic products of HUL account for 6-7% of its personal products segment.

TechSci Research depicts that Ayurveda is a growing trend in India and Ayurvedic products market has been growing at a robust pace in the country due to increasing urbanization, improving consumer lifestyle, rising awareness about harmful effects of synthetic cosmetic products. Further, the increasing number of product innovations by Ayurvedic product manufacturers is also attracting many FMCG players to enter in the Ayurvedic ecosystem. Ayush, a brand of HUL is trying to retain and attract the consumers with authentic Ayurveda based offerings.

According to a recent report published by TechSci Research, “India Ayurvedic Products Market 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 regions cumulatively accounted for nearly two-third of the revenue share in India Ayurvedic products market.