Ramdev’s Patanjali must move past pricing to win India’s consumer goods war

Yoga guru Ramdev’s Patanjali Ayurved is back to playing the “price” card. This time in dairy products.

On May 27, days after sector heavyweights Amul and Mother Dairy raised prices of their milk pouches, Patanjali announced the launch of the toned variant of its cow milk. “Keeping in view the increasing demand for toned milk in the country, Patanjali is now selling milk at Rs40 ($0.58) per litre, which is Rs4 cheaper than what other companies are selling,” Ramdev said during the launch in the northern Indian city of Haridwar.

Given the size of India’s dairy market—projected to be $140 billion by 2020—Patanjali is adding heft to its portfolio in a lucrative segment. However, can cheaper products alone help it?

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