Mumbai: Marico Ltd on Thursday said Patanjali Ayurved Ltd’s expansion into the edible oils business will not affect the company.
“No; Patanjali won’t affect our business at all,” Marico chairman and managing director Harsh Mariwala said. Speaking on the sidelines of the Retail Leadership Summit 2017, he said it is because Marico’s Saffola is a premium brand.
On Monday, Baba Ramdev promoted Patanjali Ayurved announced an agreement with soya and edible oils maker Ruchi Soya to have its mustard, soya and sunflower oils refined and packed at Ruchi’s manufacturing facilities.
Patanjali posted a Rs5,000 crore turnover this past fiscal and is looking to double it to Rs10,000 crore, expanding into new market segments.
Speaking about the success of the Saffola brand at the summit, he said its innovation came from “the way we have positioned the brand over the years.”
“When we launched Saffola oats, for instance, we were stuck at 10% market share as compared to our peers like Kellogg’s and Quaker,” he said. “Then we went back to the consumers and realized that Indians don’t like a sweet breakfast. So, we started the market segment of savoury oats, different flavour in different regions. Other players joined in, but we now command 70% share of this market segment.”