Baba Ramdev’s Patanjali Ayurved may have to prepare for competition from another ayurveda company. The ₹800-crore Baidyanath Group is making a FMCG foray, with a cosmetics and wellness range under the ‘Mantra’ brand. The company positions its products – soaps, shampoos and body wash – as ‘authentic ayurveda’.
Mantra is already being exported to the US, where the company has set up a subsidiary in Michigan, having cleared the brand with the US FDA.
Anurag Sharma, Executive Director, Baidyanath Ayurved Bhawan, said: “We have got Mantra cleared by the FDA in the US and are now bringing it to India. There will be about 40 products. While we will compete with the Patanjali brand, our pricing will be more than double that of Baba Ramdev’s brand.”
There will also be competition from existing players like Forest Essentials, Kama, Shenaz and Biotique, in the more premium ayurveda segment. With an investment of ₹15 crore, the ‘Mantra’ brand will get manufactured at the company’s own facilities in Himachal Pradesh.
Targeting revenues of ₹60 crore in the next two years, Mantra is being soft launched in Delhi.
Baidyanath’s primary challenge will be to build distribution in the FMCG space, since its forte has always been in ayurvedic medicine.
Recently, it launched another ayurvedic mouth freshener brand name, Ullas, which would also ride partly on the FMCG distribution network.
“Unlike Ullas, which will have mass distribution in FMCG, Mantra will have selective distribution with a plan to set up 12-14 stores under the brand,” added Sharma. Destinations like the T2 airport in Mumbai have been earmarked for setting up Mantra branded stores.
Baidyanath Ayurved already has an extensive distribution in ayurvedic medicine, where it reaches out to nearly 10 lakh outlets, but will have to establish a fresh distribution channel for its FMCG foray.
E-commerce partnershipIt is also using e-commerce sites as a distribution channel, having tied up with sites like Amazon.
“We are selling Mantra through Amazon in the United States and are present is the top three e-commerce sites in India,” he added.
The ayurveda company is contemplating investing in start-ups to step up presence in the online space.
“We are in a start-up mode in the ayurveda space. Currently, we are in talks for making an investment in a media company like NDTV, which has a food-based online venture under NDTV Food,” said Sharma. Baidyanath Ayurved is likely to be part of the ayurveda section of the media company’s new venture under NDTV Food.
“At the moment, we are knowledge partners for the online food venture, but may also invest in the venture going forward,” he added.