Patanjali ‘Dant Kanti’ outruns leading brands

385 0

New Delhi: Herbal appeal and low pricing have won Patanjali enormous consumers in the world’s second-most populous nation with 1.3 billion people. Millions now use everything from honey to hair oil made by the company, helping it become the nation’s No 2 consumer goods maker with about Rs 10,500-crore sales in 2016-17. Dant Kanti (Sanskrit for shining teeth), a muddy-brown herbal toothpaste that leaves a tingling taste, is the second-biggest contributor to its revenue.

Patanjali’s share doubled

Patanjali’s share doubled in the year through March to 7.4 percent, according to Nielsen data sourced from the industry. Most of it came at the expense of Colgate Palmolive, the maker Colgate and Close-Up brands, and Pepsodent manufacturer Hindustan Unilever Ltd. Colgate Palmolive’s volume share fell from 55.1 percent to 53.4 percent during the period — the highest-ever was 57.8 percent in 2015.

Patanjali’s competitors

While Patanjali gained 6.6 percentage points of share since 2012, Dabur India Ltd’s share too rose by 1.5 percentage points. The losers are Colgate-Palmolive (India) Ltd, ceding 0.8 percentage point, and Hindustan Unilever Ltd (HUL), losing 5.9 percentage points. But that’s not the full story. Till 2017, Colgate snatched share from HUL, but then gave up most of it subsequently. Patanjali’s rise has been consistent. A 6.7% share gives Patanjali a strong base which it can leverage to grow its oral care business further. The competitive response from incumbents also appears to have galvanized market growth, with toothpaste sales growing by 13.9% in 2017 compared  to 8% a year ago.

Patanjali’s next challenge

Patanjali is going to pose a greater challenge in the future as it has lined up several launches—from packaged drinking water to dairy products—and expects to resume its high-growth trajectory this year itself.

Related Post

Leave a comment

Your email address will not be published. Required fields are marked *