Acharya Balkrishna: The man behind Baba Ramdev's double-growth plan for Patanjali

Home-grown fast-moving consumer goods (FMCG) company Patanjali aims to double its turnover this fiscal from Rs 10,561 crore for the year ended March 31, 2017. The Baba Ramdev-led company's revenue makes it the second-largest pure-play FMCG giant after market leader Hindustan Unilever (HUL), which had a turnover of Rs 30,783 crore in the previous fiscal.

If Patanjali is able to double its turnover, even HUL will come within its biting distance. There is a man who knows how it can be done — Acharya Balkrishna, the CEO.

If you look at his spartan lifestyle and strong work ethic, you will be convinced the man is built for success.

A confidant of Baba Ramdev, Balkrishna holds a 94% stake in Patanjali Ayurved, but he doesn't take home a salary. Yet, he works for 15 hours a day, even on Sundays and other holidays during the year.

He claims he hasn't taken a single day's leave. "I work daily from 7 am to 10 pm. While a normal person would work for 8 hours a day, I work for 15 hours through the week. I am doing the job of five people," he says.


Balkrishna believes it's this "hard work" that has enabled Patanjali Ayurved to become a Rs 5,000-crore company within a short span of time. Unlike other companies in FMCG, Patanjali Ayurved's marketing strategies have defied traditional norms. While other companies are cautious about new product launches, Patanjali has gone the whole hog, and has over 400 stock keeping units.

It's not just Balkrishna's work life that is different from his peers in other companies. His business strategy too buck the marketing common sense. "We don't need to follow the standard marketing practices. If your basics are strong, then nobody can beat you," Balkrishna said.

That's why Patanjali has launched products in multiple categories almost simultaneously — be it toothpaste, biscuit or beauty care — with no external market research whatsoever. Most companies conduct market research before entering new categories.

Its umbrella brand strategy, where Patanjali overarches all sub-brands, is something marketing gurus advocate against.

Balkrishna is under pressure to accelerate the pace of growth to double the company's turnover within an year. That's the reason why he doesn't believe in wasting time and has already placed orders for machinery even before zeroing in on the new plant sites.

When he began the journey 10 years ago on personal loans, Balkrishna didn't think Patanjali would come this far. "I had to take Rs 50-60 crore personal loan. Prior to this, I did not even have a personal account in a bank," said Balkrishna.

Balkrishna appears to have come out of the shadows of the past, when in 2011 a case of cheating was reportedly filed against him by the CBI. He was given a clean chit two years ago and has since emerged stronger. His adulation for Baba Ramdev comes across strongly and Balkrishna closely follows his guru's advice. Patanjali Ayurved will raise loans of Rs 700 crore from banks to fund its new investments in manufacturing. "Swamiji says, 'karz se kaam karo. Loan lene se dimag theek rehta hai'."

Major components of Balkrishna's growth strategy are: to double distributor strength to 12,000, invest Rs 5,000 crore in new plants, increase headcount five-fold to five lakh within a year, and setting up a new restaurant chain.