But Dabur remains unaffected from the competition, firmly of the belief that quality will eventually decide consumer choice and not pricing alone.
Instead of seeing the entry of new companies in the FMCG space as a threat, Dabur says it appreciates the fact that they are spreading awareness on the importance of leading a healthy lifestyle.
GM Marketing – Health Supplements, Dabur India Ltd, Rajeev John says, “Every player or company will have a different proposition to present in the market and will have a different take on their set of products. This trend of being healthy is going to stay for a while and I think it is good that more players are entering this space and spreading awareness on leading healthy lifestyles.”
There has been a lot of concern in the FMCG industry after Patanjali’s revenues crossed Rs 5,000 crore, on the back of an increased focus on health following the ban on Maggi noodles.
Some brokerage firms like IIFL have projected Rs 20,000 crore revenue for Patanjali by 2020, warning established FMCG players of stiff competition.
However, another brokerage firm JM Financial says that Patanjali’s brands are still an urban phenomenon among the low income groups and that it is yet to make its presence felt in the hinterlands, which still go with the established brands.
Commenting on rapid expansion of Patanjali in the same category John says, “Patanjali truly is not a competitor in the sense that they have launched themselves in spaces of personal care, food, health – so they are very widespread as far as their reach is concerned. There is no direct competition in too many categories as they are far more aggressive in other categories as compared to FMCG.”
Dabur has products such as honey, chyawanprash, Meswak tooth paste, hair oil, skin care, which directly compete with Patanjali Ayurveda’s items.