By Jatin Bavishi
Sadhus (aesthetics) and fakirs (mystics) enjoy a special place in Indian society. A blind and unconditional sense of faith towards self-styled godmen is not exactly a new feature. Followers of one such cult recently unleashed a spree of violence around the National Capital Region because its head was convicted of rape charges. However, there are other spiritual gurus who are using their influence to launch a portfolio of consumer products.
Clash of the saints
Patanjali Ayurved Limited is Indias fastest growing Fast Moving Consumer Goods (FMCG) Company, posting a turnover of Rs. 10,561 crores in May 2017. The founder of Patanjali Ayurved, Baba Ramdev has capitalised his position as the champion who brought Yoga to the masses. To compete with Ramdevs Patanjali, the Sri Sri Ravishankar backed company Sri Sri Ayurved (SSA) is set to launch 1000 retail stores across the nation to sell herbal products. SSA has had retail stores since 2003 but its health drinks, soaps, fragrances, and spices did not receive enough consumer attention.
The business model of these companies is laid on a foundation where devotees serve as loyal customers, who are not confined exclusively to India. Unlike Ramdev, Sri Sri Ravi Shankar appeals to certain classes. However, according to a 2016 report by Edelweiss, the founder still has a captive base of 37 crores globally. A substantial chunk of money earned is pumped back into the Ashrams where it is allegedly used to fulfil social objectives.
The difference between the two patrons of Hinduism, apart from Sri Sri being a recipient of Indias second highest civilian award while Ramdev refusing to accept the same, is that while the latter is actively a part of the decisions of the companyeven testing the products on himselfthe former maintains at a distance.
Business as usual?
Major brand equity of these companies is derived from the fact that they are run by aesthetics who are not businessmen. According to The Economic Times, a sanyasi will always be trusted more than a businessman. In order to maintain the balance between spiritual and temporal interests, they combine the two in the output of companies.
Baba Ramdev, however, has slightly bigger objectives. He is a man on a Swadeshi (domestically produced) mission who openly touts boycotting products from China and other multinationals. According to The Economic Times, the other key ingredient of his strategy is keeping the prices of his products low. This is achieved quite successfully by recasting of work in his factories as spiritual seva (service). Employees are paid lower wages but are made to feel like crusaders fighting against foreign companies.
Levelling the playing field
SSA and Patanjali are not the only incumbents banking on their spiritual reach. As reported by Business Line and The Economic Times, the Auroville online platform offers 2500 products by 42 manufacturers in Pondicherry. The profits are then used for activities like education and city development. Isha Business Private Limited (IBPL) is a venture promoted by Sadguru Jaggi Vasudev. Apart from selling cosmetics, it has also ventured into construction and architecture. Santhagiri, an ashram in Kerala, has an industry division which makes medicines and coir products for exports. Amrita Life, associated with Mata Amritanandamayi Math offers eco-friendly cosmetic products and organic food.
The new Indian market
Communities in India have preserved the local knowledge of the uses of various herbs, plants, and spices, which has been consistently passed down from one generation to the next. Ayurveda and Unani were used innovatively by Vicco (founded in 1952) and Hamdard (founded in 1906) to make their products a daily requirement. They managed to carve out a niche but a mass presence was never prevalent. However, there has been a change in the structure of Indian consumer market. Devotees can be expected to be consumers but a large number of non-devotees also indeed use these items. Advertising obviously has its role to play in creating this desire. However, there has also been a greater acceptance of products made using indigenous medicine systems, especially amongst the youth. Given this special context of the Indian consumer demographic, one is bound to see intense competition.
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