Patanjali Ayurved Limited

Under The Guidance Of Prof. Jitesh J. Thakkar

Presented By:
Abhirama Krishnan V
(2340001)
Kriti Bhagat (2340018)
Muhammed Musthafa
(2340021)
Rohit SR (2340028)
About Patanjali
Patanjali Ayurved Limited is an Indian multinational
FMCG company that produces and sells a wide
range of Ayurvedic and herbal products. The
company was founded in 2006 by Baba Ramdev
and Acharya Balkrishna. Patanjali is one of the
fastest-growing FMCG companies in India, with a
turnover of over ₹100,000 crore (US$12.8 billion) in
2022..
 BUSINESS OVERVIEW
BUSINESS OPERATIONS KEY SUCCESS FACTORS CHALLENGES
1. Manufacturing: The company has over 20 1. Focus on Ayurvedic and herbal products: 1. Competition from multinational
manufacturing units across India, producing a wide Patanjali has capitalized on the growing demand FMCG companies: Patanjali faces stiff
range of products, including food items, medicines, for Ayurvedic and herbal products in India. competition from established
personal care products, and home care products
multinational FMCG companies in
2. Affordable pricing: Patanjali's products are
2. Supply Chain Management: Patanjali has a robust India.
priced competitively, making them affordable for
supply chain network, with over 5,000 distributors
a large section of the Indian population.
and over 1 million retail outlets across India. 2. Quality concerns: Patanjali has
3. Strong brand image: Patanjali has a strong faced some quality concerns in the
3. Retailing: The company has a growing presence past, which could damage its brand
brand image, its focus on natural and healthy
in the retail sector, with over 5,000 Patanjali Mega
products. reputation.
Stores and Patanjali Wellness Centers across India.

4. E-commerce: Patanjali has a strong presence in 4. Effective distribution network: Patanjali has a 3. Regulatory challenges: Patanjali
the e-commerce sector, selling its products through robust distribution network, which has enabled it has been involved in some regulatory
its own website and through major e-commerce to reach a wide range of consumers across disputes, which could impact its
platforms in India. India. business operations.

5. Marketing and Branding: Patanjali is known for its 5. Aggressive marketing: Patanjali has a strong
4. Innovation: Patanjali needs to
aggressive marketing and branding strategies. The track record of successful marketing campaigns,
company has a strong association with yoga guru
continue to innovate and develop new
which have helped to create awareness of its
Baba Ramdev, who is a popular figure in India. products to stay ahead of the
products.
competition.
 Advertising
year sales (Rs. crore) Expenditure (Rs.
crore)
Linear regression
2016 2,285 52

• Analysis between Patanjali's sales and 2017 5,000 98

advertising expenditure
2018 9,500 154
R-squared value=0.89
2019 12,000 200
Interpretation:
• 89% of the variation in sales 2020 9,872 250
• A strong positive relationship between
advertising expenditure and sales 2021 9,089 300

• The company's investment in advertising is

12,633
a positive impact on its sales. 2022 350
• Sales are expected to increase by an
average of 4.18 units
• The company is getting a good return on
its investment in advertising.
• The company could potentially increase its
sales by further increasing its advertising
expenditure
CORRELATION Marketing
Sales (Rs.
Year Expenditure profit
crore)
(Rs. crore)

• CORRELATION COEFICIEANT =0.997 2018 9,500 10,000 1462

Significance level= p < 0.01
Interpretation:
• The Pearson correlation coefficient of 0.997 2019 12,000 20,000 1918
• Indicates a very strong positive correlation
between marketing expenditure and sales.
2020 9,,872 30,000 485
• p < 0.01 indicates that the correlation is
statistically significant
• strong positive correlation between marketing 2021 9,089 40,000 425
expenditure and sales for Patanjali Ayurved
• The company's investment in marketing is
likely to be having a positive impact on its 2022 12,633 50,000 571

sales.
Correlation coefficient=0.994
Significance level=p<0.01
Interpretation:
• strong positive correlation between profit margin and sales
• The company's sales growth is likely to lead to higher profit margins in
the future.
• Economies of scale: the company is able to reduce its costs per unit, which
leads to higher profit margins.
• Increased brand awareness and recognition
 Sampling Distribution
•The sampling distribution is approximately normal, which is expected
since the population is normally distributed.

•The mean of the sampling distribution is close to the mean of the

population, which is expected since the sample means are unbiased
estimators of the population mean.

•There is some variability in the sample means, which is expected

since the sample means are random variables.

•The standard deviation of the sampling distribution is smaller than

the population’s standard deviation, which is expected since the
sample means are more precise than the population mean.

• The sampling distribution can be used to estimate the probability of F-statistic: 102.22169920821712
obtaining a particular sample mean.
p-value: 7.819241235015395e-06
For example, if we want to know the probability of obtaining a sample
mean of less than 5500, we can look at the area to the left of 5500 in Reject the null hypothesis. There is a
the sampling distribution. significant difference in sales between the
years.
This area is approximately 0.025, so the probability of obtaining a
sample mean of less than 5500 is 0.025 or 2.5%.
 PATANJALI SALES DATA

•The sales in the year 2016 is the highest.

•The sales in the year 2015 and 2019 are the same.

•There is a downward trend in sales from the year 2017 to

2019.
 SALES FORECASTING

•The forecasting model predicts that Patanjali's sales will continue to

grow in the next five years.

•The forecasted sales for 2025 are expected to reach 6800 units.

•The growth in sales is likely to be driven by a number of factors,

including:
•The increasing popularity of Patanjali's products
•The expansion of Patanjali's product line
•The growing demand for natural and organic products

•It is essential to note that this is just a forecast, and actual sales
may vary. There are many factors that could affect Patanjali's sales,
Overall, the forecasting model suggests that Patanjali is well-positioned for
including changes in the economy, consumer preferences, and the continued growth in the future. However, the company will need to
company's marketing and pricing strategies. continue to innovate and adapt to changing market conditions to maintain
its market share
 SALES BY REGION AND SALES BY PRODUCT CATEGORY

•The graph shows the sales of Patanjali's products in each region over •The graph shows the sales of Patanjali's products in each
time. product category over time.

•The South region has the highest sales, followed by the East, North, •The Food category has the highest sales, followed by the
and West regions. Ayurveda and Personal Care categories.

•The sales in the South region have been increasing steadily over •The sales in all three categories have been increasing
time, while the other regions have been more volatile. steadily over time.
 NORMAL DISTRIBUTION

In probability theory and statistics, the Normal Distribution,

also called the Gaussian Distribution, is the most significant
continuous probability distribution. Sometimes it is also
called a bell curve. A large number of random variables are
Where
either nearly or exactly represented by the normal •x is the variable
distribution, in every physical science and economics. •μ is the mean
•σ is the standard deviation
 Sales
SALES (in Year
(in Probabil
YEAR crores
Z-score
ity
Crores) )

2015 5000 2015 5000 -0.95 0.1711

2016 6000 2016 6000 -0.48 0.3148

2017 7000 2017 7000 0.04 0.5205

2018 6000 2018 6000 -0.48 0.3148

2019 5000 2019 5000 -0.95 0.1711

 PROPERTIES OF NORMAL DISTRIBUTION

•In a normal distribution, the mean, median and mode are equal.(i.e., Mean = Median= Mode).

•The total area under the curve should be equal to 1.

•The normally distributed curve should be symmetric at the center.

•There should be exactly half of the values are to the right of the center and exactly half of the

values are to the left of the center.

•The normal distribution should be defined by the mean and standard deviation.

•The normal distribution curve must have only one peak. (i.e., Unimodal)

•The curve approaches the x-axis, but it never touches, and it extends farther away from the

mean.
 Conclusion

• Patanjali Ayurved Ltd. is a financially strong company with a good track

record of growth.

• The company has strong financial ratios, low debt levels, and strong cash
flow.

• The company's valuation is also attractive, given its strong growth

prospects.

• I believe that Patanjali Ayurved Ltd. is a good investment opportunity.

• Investors should always do their own research before making any

investment decisions.
Thank
You