Hindustan Unilever to launch ayurvedic supplements to fight Baba Ramdev’s Patanjali

Consumer goods major, Hindustan Unilever (HUL) will be launching herbal and natural supplements to compete with Baba Ramdev’s Patanjali. 

HUL will be reviving its existing Ayurveda brand – Lever Ayush to launch 20 products of toothpaste, skin creams and other beauty products, a report by Economic Time said on Wednesday.

The positioning will be ‘mass market’ with price ranging between Rs 30 and Rs 130, the report added.

Lever Ayush was launched in 2001 as a premium brand but had lost momentum in 2006.

In December 2015, HUL had also signed a deal with Mosons Group to acquire hair-care brand Indulekha for Rs 330 crore. The move was aimed to boost its personal care portfolio along with its presence in the ayurvedic space, where its own brand Ayush has been a laggard, a report by Advertising Age India said.

The ET report said that HUL's personal care business accounts for nearly half its sales and 60% profits while its herbal products accounted for only 6-7% of its portfolio.

Patanjali became a Rs 5,000 crore company within a decade; however, in comparison to HUL, which is a Rs 30,000 crore FMCG giant seems small but is fast gaining momentum.

In an earlier report by Zeebiz quoted a report by Edelweiss analysts in October that said, “9 out of 10 households were using Hindustan Unilever (HUL)’s products as against 77% respondents who have or someone in their family have used Patanjali products.”

Seeing as how Indian consumers were leaning toward ‘au’ natural’ supplements, many other consumer companies launched ayurvedic variants.

L'Oreal launched a hair care range under Garnier Ultra Blends made with "natural ingredients". Colgate brought Cibaca Vedshakti to the market. 

The yoga guru in the month of April explicitly said, “Patanjali can beat multinational giants such as Unilever (HUL's parent), Colgate and Nestle.”

HUL's determination to take on Patanjali, and the latter's aggressive future plans, 2017 may see another classic corporate battle in the FMCG space, the report by ET said.