Nov 25, 2015

Can Ramdev's noodles cure homosexuality and cancer? Two minutes please.


Baba Ramdev hopes to take the instant noodles market by a storm but Patanjali atta (wheat) noodles ran into minor roll-out hiccups almost instantly after the launch. The Food Safety and Standards Authority of India (FSSAI) said Patanjali Ayurved had not got approval for instant noodles prior to their launch. Baba Ramdev’s company has, however, said that it is not required to get a product specific approval for launching atta noodles. It has further said that as per FSSAI, noodles come under the "pasta" category for which it had a licence and that Patanjali Ayurved was well within the law to launch the product. The controversy would be settled soon, but it remains to be seen whether Maggi noodles-crazy Indians will train their palates to like Patanjali noodles as much.
Just don’t assume that Patanjali noodles will not succeed in a market where people are increasingly looking to put together a quick meal and there is still a sizeable population that is not hooked on to the taste of Maggi instant noodles. Patanjali noodles is priced much lower than the popular brands in the market and that can be its competitive advantage. Lower pricing has so far proven to be a winning formula for Patanjali with almost all its products. Most Patanjali products retail at 15-30 per cent discount to its peers from home grown as well as multinational companies. Patanjali sells a range of products from honey and ghee to face wash and shaving gel through its own outlets as well as through large organised retailers and they have been popular with masses, if not with classes.
Most of all, Patanjali has Baba Ramdev as its chief brand ambassador. So, it does not have to rely on high voltage advertising and sampling like its peers in the market. Incidentally, Baba Ramdev does not hold shares in Patanjali Ayurved - about 92 per cent of the shares are held by his associate Balkrishna and the rest (eight per cent) by Scotland-based NRI couple Sarwan and Sunita Poddar.
Baba Ramdev uses his yoga sessions to showcase and promote Patanjali products, meaning he has captive audience. Given his large following and his assurance that the noodles are healthy option over cooked meals in times of high food inflation, he may soon have masses eating instant noodles out of his bowl. The wealthier classes may just turn up their noses at the thought of tasting the newest instant noodle brand in the market.

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