Patanjali, the country’s large Ayurvedic FMCG company, is making a significant contribution in strengthening India’s economy by strengthening both rural and urban areas through source, employment generation and comprehensive retail expansion. Patanjali, which began in 2006, claims that it has made a significant contribution to enhancing employment, agricultural and local manufacturing by taking advantage of traditional supply chains and modern retail forms.
Support to farmers and rural interpresses
According to the company, it has taken several steps to uplift the rural economy. A large part of its raw material-including oil, grains and herbs-is directly obtained from local farmers. The company claims that this approach has not only increased the income of farmers, but has also supported small and medium enterprises (MSME) in rural India.
The company has launched ‘Kisan Samriddhi Program’ by partnering with the National Skill Development Corporation (NSDC) and the Agricultural Skills Council of India (ASCI), which gives farmers the training of organic farming methods and modern agricultural techniques. The company said that this initiative is promoting sustainable development in rural India.
Employment opportunities through mega manufacturing units
One of the company’s recent biggest projects is the establishment of a mega food and herbal park in the Yamuna Expressway Industrial Development Authority (Yeida) area. This includes a biscuit manufacturing plant of Rs 500 crore, milk processing unit of Rs 600 crore and herbal farm of Rs 200 crore. These facilities are expected to create thousands of employment opportunities for local residents, which will further boost the rural employment market.
Urban expansion through retail and affordable product
The company claims that it has opened thousands of franchisees and mega stores across India to increase the reach of its products. The company said that these stores have promoted retail trade in urban areas and have created new income opportunities for local traders. For example, setting up a mega store requires investment of Rs 1 crore and at least 2,000 square feet space, which gives ambitious urban entrepreneurs a strong business opportunity. Acquisition of Ruchi Soya – whose value is around Rs 4,350 crore – has strengthened its position in edible oils and food segments, which has reached more economical and localized goods produced by urban consumers.
Increase in consumption from digital propagation and pricing
The company credits its distribution and marketing approach to increase its reach across India. Taking advantage of both traditional small stores and online platforms, this divers has been successful in reaching the consumer base. The company said that this has not only increased sales of products, but also has financial benefits to small retailers. Keeping our products affordable has helped us reach middle and lower income class consumers, which has increased consumption in both urban and rural areas. The company further said that through innovation and strategic investment, the company has strengthened its position. This is an important step towards building a self-sufficient Indian economy and reducing the rural-urban difference.