Patan­jali’s Nat­u­ral Bet Pays Off in Oral Care Space, Too

Climb­ing to the Top

The Economic Times - - Brands: Creating Desire - Sa­gar.Malviya

Patan­jali Dant Kanti has out­paced Pep­so­dent, Col­gate Ac­tive Salt and Sen­so­dyne in the past year

Mumbai: Patan­jali Dant Kanti has out­paced Hindustan Unilever’s Pep­so­dent, Col­gate’s Ac­tive Salt and Glax­o­SmithK­line’s Sen­so­dyne af­ter nearly tre­bling its share in the oral care seg­ment over the past year. The Baba Ramdev-led brand had 6.2% share dur­ing the quar­ter ended June, com­pared to 2.2% a year ago, mak­ing it the coun­try’s fourth-largest tooth­paste com­pany.

Col­gate — still con­trol­ling half the mar­ket with 52.7% — lost 120 ba­sis points, while Hindustan Unilever’s share de­clined 240 bps to 17.6%. Dabur, which has gained 20 bps at 12.1% along with Patan­jali, has been fu­elling its ex­pan­sion of the her­bal prod­ucts mar­ket, un­der­lin­ing the grow­ing de­mand for ayurvedic prod­ucts and forc­ing most com­pa­nies to launch her­bal vari­ants of tooth­pastes. Prod­ucts that have “nat­u­ral” in­gre­di­ents now ac­count for nearly a fifth of the over­all tooth­paste mar­ket. “We plan to launch new vari­ants within Dant Kanti — in­clud­ing aloe vera, fresh ac­tive gel and red tooth­paste — which will help grow shares even fur­ther. We have fol­lowed every prin­ci­ple of ayurveda for our new prod­ucts but multi­na­tion­als have been just copy­ing it with­out un­der­stand­ing the sci­ence be­hind it,” said SK Ti- jarawala, spokesper­son at Patan­jali Ayurved, which crossed the ₹ 10,000-crore sales mar­ket the pre­vi­ous fis­cal.

Patan­jali’s rise in less than a decade has shifted MNCs’ fo­cus to the ayurveda sec­tor, es­pe­cially in oral care. A year ago, Col­gate launched its first In­dia-fo­cused ayurvedic brand, Cibaca Ved­shakti, aimed squarely at coun­ter­ing Dant Kanti. HUL too launched a raft of ayurvedic per­sonal care prod­ucts, in­clud­ing tooth­paste, un­der the Ayush brand.

RI­VAL TO WATCH OUT FOR

Col­gate Pal­mo­live global CEO Ian Cook named In­dian ri­val Patan­jali while talk­ing to in­vestors a week ago about the need to re­spond to chang­ing con­sumer pref­er­ences in In­dia, where the tooth­paste gi­ant recorded its steep­est mar­ket share fall in a decade last year.

“Patan­jali in In­dia takes a very na­tion­al­ist view of its busi­ness,” Cook told in­vestors dur­ing an earn­ings con­fer­ence call. “Th­ese are con­cepts in the lo­cal mar­ket. They tend to be pre­mium price-ori­ented and it means you have to re­spond with a very specif­i­cally con­structed of­fer­ing that at­tacks the ben­e­fit the con­sumer is look­ing for. Hence, the nat­u­ral — the nat­u­ral re­ac­tion,” he had said.

Patan­jali has been able to chal­lenge the multi­na­tional’s dom­i­nance in the seg­ment de­spite be­ing present in only two lakh tra­di­tional re­tail stores.

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