Strategic Management Assignment

Patanjali Food and Herbal Park

Submitted By

Group -9

Roll No Name Roll No Name

9810012 Ankit Jain 9810021 Divya Jain

9810016 Arushi 9810027 J.Pooja

9810019 Beenu 9810036 Lekshmi P

Patanjali Herbal and Food park Page 1

Contents

Contents................................................................................................................2

1. Introduction ......................................................................................................3

2. Vision, Values and Objectives ...........................................................................4

2.1 Vision of Patanjali Trust ...............................................................................4

2.2 Values: ........................................................................................................4

2.3 Idea behind establishment of Patanjali Food and Herbal Park......................4

2.4 Rationale of Patanjali Herbal Park ...............................................................5

2.5 Objectives of Patanjali Food park.................................................................6

3. Organisation Structure:.....................................................................................7

4. Patanjali Food and Herbal Park..........................................................................8

4.1. Product Categorization..............................................................................12

5. Business Model ...............................................................................................12

6. Strategy for Low Cost Operation ....................................................................15

7.Food processing Industry in India ....................................................................17

7.1Food Processing Units In Organised Sector (Numbers) ...............................17

7.2Major players in food processing industry...................................................18

7.Market and Competition ..................................................................................18

8.1Competitive Grid.........................................................................................19

8.2Marketing System of Patanjali ....................................................................19

Research and Development in Patanjali..............................................................20

SWOT Analysis.....................................................................................................21

Schemes for welfare of farmers at Patanjali Food and Herbal Park.....................22

Various units inside Food Park ............................................................................24

Financial Management .......................................................................................26

14. Refrences .....................................................................................................26

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1. Introduction

The conceptualization of the Patanjali Food and Herbal Park Limited at

Padartha Haridwar is the result of initiative shown by the Special Purpose
Vehicle (SPV), constituted for the purpose, headed by Acharya Balkrishan Ji,
International Authority in Ayurveda, and the Ministry of Food Processing
Industry, Govt. of India under Vision 2015 of Ministry of Food Processing
Industries. Vision 2015 of Ministry of Food Processing Industries aims to raise
the processing of perishables in the country from existing 6 % to 20 %, value
addition from 20 % to 35 % and the share in global food trade from 1.5 % to 3
% by year 2015. Under their Mega food park scheme, the Ministry of Food
Processing Industries (MoFPI), Govt. of India, encourages the like minded
entrepreneurs to form a special group called SPV with the specific aim of
developing basic infrastructure for an agglomeration of food industries
enabling them to grow into a thriving agro- based industrial hub. The larger
purpose is to provide a growth stimulus to the rural economy by creating a
demand for their conventional and nonconventional produce and also to meet
the growing demand for quality based products in the urban world. A
successful backward and forward linkage makes the model an engine for
uplifting the rural economy of the country out of the vortex of stagnation,
where it finds itself today.

With the first of its kind in the country coming up at Padartha, Haridwar
surrounded by an appropriate catchment area of an impoverished hilly
economy of Uttarakhand, this initiative is a great challenge for the present
and holds a great promise for the future.
By creating post harvest handling infrastructure PFHPL will also help reduce
post harvest losses of perishables from the current levels of 30% - 35% which
is approximately Rs. 50,000 Crores per annum. To realize the Vision 2015,
MoFPI has pledged support under the Mega Food Park Scheme (MFPS). Each
Mega Food Park (MFP) will be subsidized with an amount of Rs. 50 Cr on a
milestone & progress achievement basis.

Central State Minister for the Food Processing Industries, Govt. of India, Shri.
Subodh Kant Sahay, laid the foundation stone of this park. An estimated
investment of Rs. 500 crores is being invested on this project, covering an
approximate area of 100 acres. It is estimated that about 20,000 people will get
an employment opportunity through this project. This food park will produce
agricultural products, products related to nature and products related to herbs
and plants.

This project aims to make the farmers economically strong, as they will get their
own market to sell their products at a right price. As per the visionaries of the
project, it is just the beginning and there is a long way to go from here. In the

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long run India will be the sole provider of food materials to the Middle East and
hence, will be playing a major role in removing the food crisis of the world.

2. Vision, Values and Objectives

2.1 Vision of Patanjali Trust

To build a disease free world by making every individual physically strong,
emotionally balanced, socially responsible and spiritually awakened

2.2 Values:
Patanjali derives their values from MAHARISHIPATANJALI:

P-Purity of Products –for our loving people

A-Attend the needs of our customers –with care

T-Truthful to the people –we share their problems

A-Attend the needs of our customers –with care

N-Nature to be our best Teacher-alround harmony

J-Joy of work , Team spirit ,Stress Free environment for a friendly work place .

A-Add value to products innovate always

L-Live with our Scriptures back to Vedas ,Shashtras,Upanishds

I-Inculcate Unity of Self ,family ,nation and the world through Yoga

2.3 Idea behind establishment of Patanjali Food and Herbal Park

India had been a called Golden Bird for it had a climate, cultivable conditions and
resources that formed a perfect combination for agriculture. Our country has
been an agri-based economy, but the present conditions do not seem to be very
positive for our coming generations. The mass suicide of 16,000 farmers every
year proves that our defunct government on one hand raises issues of food
security for our country but on other hand is unable to give the farmers of our
country good price of their production, resulting in huge debts on them and
leading them to a path of ending their and their family’s life or finding other easy
means of crime to raise money.

The Green Revolution in year 1960 brought with it a huge change in Indian
agricultural scenario. But, we did not realize that this introduction of new seeds,
fertilizers and techniques will lead to huge costs of production in future due to
the increasing costs of these technologies and decreasing size of land holdings.

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It is not only the monetary losses, but excessive use of fertilizers and chemicals
lead to increased level of pollution in our soil and water bodies. These poisonous
chemicals also kill nature friendly bacteria’s which have proved to be a resistive
mechanism for various diseases. The present condition is that these chemicals
get transferred to infants via feeding and are laying a foundation for increasing
instances of dangerous diseases like cancer, diabetes, blood pressure, heart
problems etc. According to a statistical data 24 lakh people every year develop
cancer. Also, according to the medical departments around 8 crore people in
India who have highest chances of developing cancer are those who are either
involved in spraying of these chemicals or are anywhere exposed to these
chemicals. Every year around 90 thousand metric tons of pesticides and
insecticides in solid form, 1crore litres of it in liquid form and 1.90 crore metric
tons as fertilizer is sprayed. Unfortunately only 2% of these chemicals are
actually utilized and rest 98% is resulting in adding to the pollution to our
atmosphere.

The need for present conditions calls for a total switchover from these harmful
chemicals to natural fertilizers like vermin compost, manures etc. Patanjali Food
and Herbal Park is trying to contribute in promoting the natural manures based,
‘zero budget agriculture’ for the health and prosperity of our country.

This food park is a step to create and implement a whole plan of food processing
not only in states like; Uttarakhand, Haryana, Punjab, UttarPradesh, Himachal,
Rajasthan, Gujrat; but to almost whole of India based on natural techniques of
agriculture.

2.4 Rationale of Patanjali Herbal Park

Keeping in mind the strategy to combine our resources to write a blueprint for a
developed agriculture in India, Patanjali Food and Herbal Park has a goal to
address some burning issues related to agriculture.

• Providing farmers with high quality seeds keeping in mind their nutritional
content and help in increasing the agricultural produce.

• In alignment with World Trade Organization attempting to reduce

production costs and providing people with quality food products.

• Development of natural resources and their proper utilization in providing

masses with food of high quality.

• Use of natural manures to maintain ecological balance and eradication of

chemicals from our environment.

• Integration of small and landless farmers for protection of their rights and
promoting production of herbs to them.

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 • Promoting agri-based businesses for eradication of poverty and value
addition for increasing employment opportunities.

• Bringing agricultural practices to international standards for reduction of

cost of production and standardization.

• Providing farmers with excellent seeds and resources for cultivating and
nurturing a goal for healthy world.

• Saving the cultivable land from being used for other purposes.

• Sensitizing people with nutritional aspects related with various foods and
their promotion.

• Promotion of minimizing the use of pesticides and insecticides.

• Developing techniques for water resource management and their

promotion.

• To dismantle the multi-layer commission agencies in the existing supply

chain.

• Encourage public private partnership in agro industry.

• Encourage non-conventional farming for traditional agro-products.

2.5 Objectives of Patanjali Food park

The various objectives are:

1) Improve value chain: To build up a sustainable and viable value chain

from farm to fork, for all agro based products. The various interventions to
overcome the challenges in the prevailing value chain system is to;

i. Create new infrastructure and upgrade the existing infrastructure

ii. Trade facilitation

iii. Market demand driven Production

iv. Meeting global standards of Quality

v. Linking farmers to the markets

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 2) To maximize the returns to the farmers for their farm produce by
buildings strong and rich backward linkage while slashing the
intermediaries and introducing concepts like journal marketing etc.

3) To produce quality yet affordable agro based consumables for all

market segments that include the world market as well.

4) Revitalizing the rural and hilly economy of the catchment area of the
processing centre, by creating a reliable, reachable and round the year
market for the farmer’s produce.

5) Stimulate investments in the agro and food processing industry

6) Establish state of the art infrastructure for the processing centres of

agro products and showcase a successful, modern and efficient agro
based business venture to the world

7) Establish a platform for the business interactions, discussions, and

workshops for the various stakeholders like farmers, retailers, banks,
industrialists, academicians and government.

8) To be a knowledge resource to the agriculture sector in terms of

markets, quality and quantity of production, diversifications of farming
activities, organize farming, micro-irrigation etc.

3. Organisation Structure:

The organisation structure of Patanjali Food Park is depicted in the diagram

below:

The management team consists of Board of Directors assisted by Managing

Director and Chief Operating Officer. PFHPL will manage the project in a manner
that it is structured in its hierarchy with delegated and clearly defined roles and
responsibilities of each member. The well structured hierarchy helps in achieving
the results with higher efficiency.

The management team is aided by a capable advisory and executive team of

professionals to meet the financial requirements, legal regulations and other
techno commercial aspects required to run a successful agri-business project.
The team consists of highly skilled people from various prestigious institutes
across the country including the IIMs.

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4. Patanjali Food and Herbal Park

The Patanjali Mega Food Park (PMFP) has been envisaged to help in creation of
enabling infrastructure for food processing and a comprehensive ‘farm-to-plate’
supply chain system. This is aimed at reducing wastages and ensuring value
addition, especially in perishables like fruits and vegetables. This is further
aimed at reviving the agricultural sector by increasing the returns for farmers
besides making processing more economically viable and help creating large
employment opportunities particularly in the rural areas.

The scheme also will create opportunity to attract investment in the

infrastructure for food processing in general paving the way for processing a
range of value added products. Additionally the scheme is expected to help the
efforts of the Government of India to promote secondary agriculture in the
country.

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Patanjali Herbal and Food park Page 9
Establishment of Mega Food Parks is one such important step towards creation
of agri infrastructure with various other added advantages. The Mega Food Park,
Patanjali Food and Herbal Park Limited (PFHPL) will be an appropriate platform
which can be suitable to address the problems of wastages of fresh produce,
further augmenting the availability of fruits, vegetables and other perishables to
the consumers round the year and also reward the farmers with improved stable
prices with assured buyback mechanisms.

Furthermore, the Mega Food Park aims to provide the state of the art
infrastructure for food processing in the state on the basis of a pre-identified
cluster. This will establish a raw material supply chain for each cluster and
facilitate induction of latest technology and foster inter-agency linkages for
pooling of resources for activities complementary to food processing it will
provide quality assurance through better process control and capacity building,
also give major importance to quality control and cold chains scheme.

In our country where farmers often do not get their right share financially, for
their products at present, the Food Park Scheme comes as a rescuer.
Intermediaries cheat these poor farmers and hinder the urban economic growth
from reaching the downtrodden farmers. With the opening up of this food park,
industries will approach the farmers directly and farmers will get their own
market. Improper and unhealthy food is the biggest reason of diseases in this
world. With the advent of this food park, people will get uncontaminated and
pure food. In a nutshell, it can be summarized that this food park will give
prosperous life to the 40 crore people of the rural population and promote
healthy living to the 70 crore population. This project which initiated at Rs. 5000
crore is expected to expand and grow upto Rs. 1 lakh crore. In its own way, this
food park is a unique one. The main objective of this park is to smoothen the

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supply of products to people and in this way farmers will earn profit. The scheme
visualizes the farmers and laborers as self-reliant and self-sufficient. And aims
produce fruit and vegetable extracts, flour with herbal technology, so that it is
beneficial for the health of the people in general.

It is planned that daily 650 tons of material will be processed in this food park.
The food park would have all the facilities from the procurement of material to
the final product dispatch. Processing and packaging will be done here using the
state of art technologies. In this way, it would be the largest food park of the
world. It is estimated that if the all the farmers of in Uttarakhand, alone, are
involved in this project, then just 3 months material can be made available for
the food park. Production and procurement of raw materials needs to be
increased, and therefore farmers and laborers from Himachal Pradesh, Punjab,
Haryana, Rajasthan Jammu and Kashmir are being called in to assist in this
project. The central government is investing Rs. 50 crores and Patanjali is
investing Rs. 500 crores in this project.

This huge project aims at implanting 32 processing units, through which high
quality fruit extracts, pulp, candies, herbal products and many more beneficial
products can be extracted. Many industrialists will be participating in this mega
project as a co-operative service provider to build up mutual basic infrastructure.

The food park is a boon for the vegetable and food growers as they will be able
to dispose of their entire farm production in bulk to this mega park. In addition to
this, producers will be given training to grow suitable plants like amla and
alovera in vacant barren lands. Patanjali yogapeeth will develop such 100
centres which will provide high quality seeds and fertilizers to the farmers.

The complete project will remove the role of intermediaries and provide
economical benefits to the farmers, producers and other people of the area. This
project will lead our country to a new era of health and prosperity. The day the
farm products will turn into the raw materials for the processing units, their
farmers will get their right financial share and improve their economic condition.
This is only possible by adopting the direct disposal of farm produce to food and
processing industries.

Apart from setting up a unit for manufacturing the herbal ashes, a unit for
manufacturing bio-diesel from crude palm oil is also planned. This unit would be
launched in the second phase of the project. Also there is a plan to establish a
biodiesel plant and a cattle farm to promote indigenous and self dependency. To
achieve this, farmers will be encouraged for the Jetroffa cultivation and cattle
breeding. Machines have already been placed to produce essence made from
cow urine (Gomutra).The waste products left after food and herbal processing
will be used for the production of bio gas and electricity. The leftovers after
getting bio gas and electricity will be utilized for making bio fertilizers and bio
pesticides. More than 100 centres of Patanjali Yogpeetha across the entire
Uttarakhand region will provide techniques of getting high quality seeds and
fertilizers and also impart training about improved methods of farming. With the
help of these centres, the farm produce will be brought to the food park. In this

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way the farmers will get the maximum benefits on their farm production in terms
of money and will bring revolution in the farming practices of India. After the
complete construction of Patanjali Food and Herbal Park, it will become the
world’s largest juice factory with the capacity of producing 400 metric ton juices
every day. The plant has already been procured from Sweden. For the
production of packaged food, contracts are concluded with the farmers to grow
related crops.

4.1. Product Categorization

According to the nature of the product we can also categories these products
into three major parts. This are-

A. Ayurvedic Medicine

B. Cosmetics

C. Processed Food

5. Business Model

Under this initiative, farmers are being directly connected to the processors. The
initiative aims to seek maximum value addition by backward as well as forward
integration between the farmers, factory and the market. We can say that here
the supply chain doesn’t have any intermediator in between but rather it’s a
direct from supplier to producer to consumer. This also helps in reducing the
cost because it avoids the unnecessary commission cost and other related
charges of the intermediateries.

Farmer Producer Consumer

s

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Patanjali Herbal and Food park Page 13
Around 20-25 farmers form a self help group after being motivated by Patanjali
and plan specific production. There are a number of such groups forming
clusters in various places . These clusters collect their harvest and turn them in
the collection centres operated by the company. There are 5 primary processing

centres to which the collection centre sends all the food products collected. Four
PPCs located in Uttarakhand region are in Bijnaur, Saharanpur, Meerut and
Muzzafarnagar. From there PPC the collection is sent to the Central Processing
Centre in Addak for the last phase value addition.

The PPC have their own warehouse and the company promotes contract farming.
It also provides the farmers technical aids and environment friendly fertilizers
under the contracts. There is a fixed common minimum rate for the farmer’s
produced which is decided with the inclusion of local government. In case the
requirement of certain products is not fulfilled, the company outsources from
outside.

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6. Strategy for Low Cost Operation

Patanjali has been well connected, through the backward integration, with the
farmer community. As discussed earlier in this document we have situations in
which agricultural products are thrown out in the road because of lack of
markets and at the same time the country witnesses situations in which the
same product is sold at alarmingly high price in other part of the country,
Patanjali Food and Herbal Park is an attempt to control this disparity. It aims to
reduce the wastage, give better standards of living to farmers and also to make
products available at a cheaper rate to a wider market.

1. Backward Integration:

In an attempt to reduce the wastage and help the farmers the Patanjali Food
Park has took the following steps in the backward integration process:

• Identification of areas, villages, SHGs, farmers for growing crops of

desired standard both in quality and quantity.

• Provide necessary technology and knowhow to the farmers attached to

the company.

• Provide financial assistance to the registered farmers.

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 • To enter into forward marketing contract with the registered farmers.

• Ensuring direct and decent remunerations to the farmer

As in this step there is no involvement of third party, a huge part of

excess cost is saved here.

2. Procurement:

The authorities then collect the farm products from these farmers through their
own Mobile Collection Centres and Primary collection centres which cut downs
the cost of the commission and intermediateries. They collect the farm products
which are produced by these farmers promptly thus helping the farmers avoid
storage costs and loss due to perished crops. Moreover they also collect
products which are going waste due to unavailability of markets in huge
quantity. For eg: Recent procurement of 15 tonnes of C-grade apples from
farmers in the Chamoli district.

They have their own mobile collection centres located in vicinity of the
areas of agricultural production and also they go for bulk procurement
of agricultural products.

3. Logistics:

Safe and quick transportation of agricultural products from collection centre to

the main processing centres with a view to reduce wastage of perishable
produce.

Excellent Logistic facilities help them transport things from their mobile
collection centres to processing centres which avoids wastage

4. Operation:

Low cost processing of farm produce by ensuring high volume processing which
in turn ensures economy of scale and capacity utilization. They also make sure
that nothing from the procured raw material is being wasted. Even the waste
which comes after processing is collected and is used for many purposes; like a
part of it is turned in to ashes and spread over the farms to increase the fertility
of the land. Taking a completely eco-friendly measure, a biogas plant for power
generation has also been planned and the waste generated from the plant is to
be used for making bricklets to be used in boilers.

High volume production which will ensure economies of scale and the
effective re-usage of waste products also helps in reducing costs.

5. Sales and Distribution:

• Supply of Quality products through a wide net work of Patanjali sale

centres throughout the country.

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 • They also provide online shopping, post office counters also sell their
product

6. Promotion:

• Promotion of their product is done by their own trusts.

• New Marketing Strategies & Plans are being developed as the Food Park
aims to provide access to retail markets.

7.Food processing Industry in India

Indian Food Processing Industry ranks 5th in the world in terms of production,
consumption, exports and expected growth. It is the largest producer of milk,
pulses, sugarcane and tea in the world and a major producer of wheat, rice,
fruits and vegetables. The Indian food industry is estimated to be worth over US$
200 billion and is expected to grow to US$ 310 billion by 2015. The Indian food
processing industry is estimated at US$ 70 billion. It contributed 6.3 per cent to
India’s GDP in 2003 and had a share of 6 per cent in the total industrial
production. India is one of the world’s major food producers but accounts for
only 1.7 per cent (valued at US$ 7.5 billion) of world trade in this sector – this
share is slated to increase to 3 per cent (US$ 20 billion) by 2015. India with
arable land of 184 million hectares, produces annually 90 million tonnes of milk
(highest in the world), 150 million tonnes of fruits & vegetables (second largest),
485 million livestock (largest), 204 million tonnes food grain (third largest), 6.3
million tonnes fish (3rd largest), 489 million Poultry and 45,200 million eggs.
Processing level is very low i.e. around 2% for fruits & vegetables, 26% for
marine, 6% for poultry and 20% for buffalo meat, as against 60-70% in
developed countries The share of India’s export of processed food in global trade
is only 1.5%. Average Growth rate of FPI during the last five years (upto 2003-
04) has been 7.15%.

7.1Food Processing Units In Organised Sector (Numbers)

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Source : Ministry of Food Processing Industries, Annual Report

7.2Major players in food processing industry

Some of the major players in the Indian Food processing Industry are:

Company Products
DABUR INDIA
Fruit juices, cooking paste, honey
Ltd
Branded wheat flour, biscuits, ready to-eat food,
ITC
confectionary

Ice cream, branded wheat flour, bread,

HUL
sauces, jams.

RASNA (PIOMA Instant drink, health drink, soft drink

INDUSTRIES) concentrates, flavours

PEPSI Soft drinks, potato chips, snack food, fruit juices

CARGILL Vegetable oils

Coffee, chocolates, confectionary,

NESTLE instant noodles, milk products,
beverages, health drinks

GLAXOSMITH
Health drinks
KLINE

7. Market and Competition

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Indian FMCG market is a market which has a very wide range of customers.
There are many competitors in all the categories and although they all have
similar products available at almost similar prices, Patanjali is trying to prove
itself different through their marketing strategies. However, entry to this
business is easy (low entry barriers) and this fact has been utilized very
efficiently to result in combined benefit for both Patanjali and the consumers.

8.1Competitive Grid

Product Patanjali Brands Competitor Brands

Sharbat/Squash Amla, Bel, Brahmi, Gulab, Kissan Squash, Rooh-
Keshar Badam, Orange, afza, Minute Maid, Rasna
Nimbu, Mango
Juice AloeVera,Anar, Amla, Real and Kissan Juices
orange
Jam Seb ,Pineapple and Mix Kissan, SIL, Tops, Druk
Jam
Salt Saindha Namak Tata, Annapurna
Chayawanprash Sada.Special Dabur, Baidyanath,
Chyawanprash, Zandkesari Jiwan
Flour Aarogya Aata Aashirwad, Annapurna

Candy Amla, Anardana Hajmola

As seen from the above table the major products of the Patanjali Food park are
Sharbath (Juice concentrates), Jam ,Salt, Chyawanaprash, Flour and candy. The
advantage with all these products is that these are made of natural products and
don’t have any side effects at all. But as there are so many players existing in
the market, that Patanjali products have a tough competition to face with.

8.2Marketing System of Patanjali

Marketing of the Patanjali group is viable through the detailed marketing
strategy which addresses each target group. Broadly the marketing strategy
includes the following:
i. The most important promotional activity involvs yoga campaign by Baba
Ramdev and the Patanjali Trust.

ii. Advertising through business journals and newspapers in India and abroad
with the help of an advertising agency.

iii. The Company has established a web site in the Internet. This will ensure
international visibility and marketing.

iv. Group regularly Interact to Industry and Business Associations.

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 v. Group also has interaction with foreign embassies/trade counsels in India.

vi. They are also bringing out attractive brochures and other literature with
the help of advertising agency.

Research and Development in Patanjali

In order to keep in pace with the latest developments in the Agricultural sector
and also to look for new innovative methods of production, Patanjali has to its
credit a well developed Research and Development section. The main aims of
their R&D section are:

• To conserve and preserve more agricultural lands and increase their

productivity

• To introduce more hybrid varieties of seeds and crops

• To retain the nutritional content in the processed food.

• To study the botanical behaviour at various geographies and to find the

best possible techniques of cultivation and suitable crops accordingly

• Search and unearth the age old homely and Ayurvedic recipes using
natural ingredients to replace the chemical contents of shampoos and
soaps.

• To develop agro- technology of potential agricultural plants.

• To avoid problems of adulterants and artificial synthesizers in the food.

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 • To prepare more herbarium specimen sheets and establishment of
Herbarium of dried specimens of all the economic useful plant species e.g.
roots, leaves, flowers, seeds, bark, fruits etc.

• To multiply agricultural plants through tissue culture and biotechnology.

• To develop agro technology based on indigenous methods of seed

selection and organic farming etc.

SWOT Analysis
Strengths:

• Natural products without any kind of side effects.

• Innovative Aspects.

• Presence of Established distribution networks in urban areas.

• Solid Base of the trust.

• Social Responsibility to make people healthy.

Weaknesses:

• Strong Competitors & availability of substitute products.

• Low exports levels.

• High price of some products.

• Absence of Established distribution networks in rural areas.

• Very less promotional activities.

Opportunities:

• Large domestic market – over a billion populations .

• Untapped rural market.

• Changing Lifestyles & Rising income levels, i.e. increasing per capita
income of consumers.

• Export potential and tax & duty benefits for setting exports units.

Threats:

• Tax and regulatory structure.

• Controversy created by other groups regarding Patanjali products.

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 • Removal of import restrictions resulting in replacing of domestic brands.

• Temporary Slowdown in Economy can have an impact on FMCG Industry.

Schemes for welfare of farmers at Patanjali Food and

Herbal Park

A.Food Processing Research and Development

For the testing and development of of new technologies, full-fledged laboratories

have been established at the food park. In order to develop techniques at par
with international standards; individuals specializing in botany, microbiology etc.
life sciences study and experiment various aspects. The various aspects looked
after by this branch of food park are;

• Establishment of aryurvedic, cosmetic, packaging technology, business

centers etc.

• Proper utilization of natural resources at Food and Herbal Park, eventually

generating employment opportunities for 30 thousand people at park
itself and self employment opportunities for others.

• Promotion of plantation of herbs that will not only increase their

production but will also help in their conservation.

• Training of farmers from time to time.

• To promote increase in consumption of natural and healthy foods and also

organizing campaigns for sensitizing people about ill-effects of fast foods.

B.Natural Resource and Environment Management

This is an attempt to make natural resources environment friendly with proper

use of technology and conserve them.

• Developing proper technology to clean environment by using the natural

waste and cow dung to make manure by proper methods.

• Promoting and making available the technology of vermin-compost.

• Conservation of cows of Indian breed and telling people about their proper
care and utilization.

C.Research on Organic Resources and Agriculture

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This division includes the use of technology for protection of environment.
Genetic engineering will be used to make anti-pest resistant species, use of
technology to identify water-bodies by presence of chemicals like arsenic,
fluoride, nitrogen etc and their treatment so that our environment could be
protected by harmful poisonous pollutants.

D.Value Addition of Organic Waste Material

In this project the waste generated out of agricultural processes would be value
added as it would be used for making bio-gas. A captive power plant is being
established. This would be the first plant in country to totally run a factory by
using waste materials.

E.Food Security and Quality Management

Food industry plays a very important role in economy of a country. So is the role
of quality of food. Keeping in mind ISO 4000 and ISO 22000 is to be
implemented. With the use of hazard analysis critical control point based
security mechanism quality control Patanjali food park is probably world’s best
and it is India’s first USA, FDA food processing plant. To match our products
standards with the best of world’s standards, world class clean room and
packaging facilities are implemented.

F.Establishment of Multi Chamber Cold Storage

Storage of perishable food products is a major problem in our country. To save

the produce from any kind of wastes a multi chamber cold storage facilities have
been developed. With this facility other value adding facilities like grading,
packing, pre cooling are also available at the plant. With the working of this plant
all seasonal fruits and vegetables will be available throughout the year.

G.Technical Assistance and Implementation

The communication of latest trends and technologies to masses plays a crucial

role in agricultural development. This food park aims at maximum participation
of farmers in the knowledge management and creates a blueprint to pick best
technologies, and carries out their evaluation and feedback programmes with
farmers. Self help groups at village level like sehkari samiti, farmers interest
groups etc are also at focus for giving technical assistance and facilities of loans
etc.

H.Creating Common Perception about Food Processing among Masses

and Government

Patanjali as an organization is trying to create a common platform for masses

and government for proper utilization of the resources and proper
implementation of schemes of Government. Various public organizations like
APEDA, National Horticultural Board will be brought in the picture for making a

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strong backward linkage and managing a proper supply chain. This will further
help in,

• Cutting down wastage which will further lead to food security.

• Increase the share of revenue that farmer gets for his produce.

• Maintain a responsive and efficient supply chain.

• Cutting down on the commission that agents get in between every stage
and making the produce cheap for masses.

• Setting international standards at every stage of food industry.

• Creating facilities which will help in catering to seasonal needs for

processing, packaging, storage etc.

• To establish 5 processing and 10 collection centers at the initial stage of

implementation.

I.Organizing Food Expo, Fairs and Exhibitions

Trade center is being established at Patanjali for trade and agri expos, food and
technology expo etc. Under this, one roof information about all the technologies
and developments, that take around the world will be available and masses will
be sensitized with healthy eating habits.

J.Inclusion of women in agriculture and women empowerment

This center aims for the empowerment of women and their inclusion in the
agriculture as throughout India 60-70 % of agricultural work is done by women.
The plan is to develop groups of women which will be trained and guided for a
collective production. They will be trained for the secondary activities related to
agriculture like animal husbandry etc. and women self help groups will be
promoted.

Various units inside Food Park

1. Food processing unit

Flour mills for grain processing

These mills will cater to Arogya atta, Navratna atta and Organic atta. These mills
use the technology to slowly grind the grains so that they do not lose their
nutritional content. Dalia making unit has also been established.

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Spices and Pulses processing unit

The main aim of this unit is to do proper processing of grains and they can be
value added. All pulses will be processed in this unit.

Juice Unit

Establishment of Juice Plant for processing of Fruits and vegetables. This is the
first ultramodern technology based Juice palnt in India where processing of more
than 400 tons of fruits and vegetables can be done daily.

Products of patanjali food park are of high standard, free of preservatives and
have medicinal properties. They will be available at minimum cost to people. On
priority basis in the beginning juices of Amla, Aloeveera, gourd, carrot, bitter
gourd, tomato, wheat extract, tulsi, mint etc will be sold for better health of the
people.

Ayurvedic Unit

According to Shastras, Ayurveda is the basic mantra to know the life that can
give a new life to man. Production of Ayurvedic herbs and plants can bring
prosperity to farmers. Today there is a need to develop Ayurvedic medication
according to standards. Patanjali Ayurved is working in this field with great
precision to provide high quality medicines to people at the lowest cost.
According to the demand of the people of the country, Patanjali has

established an Ayurvedic Medicine unit in a very vast area

Herbs/Extract Unit

This unit is established to store herbs, fruits and vegetables for a long time and
to make them easily available to people

In the beginning this unit will make powder of Amla, Aloe Vera, Bitter gourd,
gourd etc.

Patanjali Food Park and Patanjali family is promoting Organic Farming at war
scale. It will not only provide employment to more than 30000 people but it will
also provide self-employment to people related with farming, labor selling etc.
Through Food Park eatables will be properly processed and will be made healthy.
An extraction unit is also being set up at Food Park which will help in extracting
maximum medicinal values from the herbs. The biggest cold storage is also
established at Food Park where raw and semi processed produced to be used by
various processing units can be stored.

2. Beauty Products Unit

Patanjali Ayurved is producing high quality beauty products like soaps, shampoo,
creams, toothpaste etc.. These products will help in keeping the body pure and
clean.

3. Detergents Unit

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This unit is established to manufacture washing soaps and powders which are
made up of harmless chemicals and herbs.

Financial Management
The financial hold of the company is in strong hands. It is a complete trust
control and payment is made only on the basis of work done or the goods shared
with the company. People from prestigious institutes like IIM are now being a
part of the Patanjali workforce and there are no abnormal migration rates.

The main driving force behind the organization is not self development but the
development of the nation. The finance of the trust is being used for the
development of the society. Patanjali and Divya Yog funds are being used for
new projects like opening industrial centre in every village. It is estimated that
there would be a spending of around 4-5 crores based on the need and
availability of opportunity in each village. A 2000 crore initiative is being planned
by the organization. The main motive behind this investment is ‘gram utthan’.

At present there are no plans for IPO of Patanjali, which was under consideration
some time back. However the company can come up with the same after a
couple of years.

The Government Support is present in only few activities and projects related to
Yog and PFP. Ministry of rural affair projects are pending with the organization in
tune of around 25 crores by the end of the year. Government wants to
collaborate and include Patanjali in implementing projects.

8. Conclusion

Patanjali Food and Herbal Park which was established with the aim of facilitating
the achievement of Vision 2015which is to raise the processing of perishables in
the country from existing 6% to 20%, value addition from 20% to 35%, and
share in global trade from 1.5% to 3% by 2015.

The structured supply chain and the procurement process will do help in
attaining the oragnisation in achieving the above goals

14. Refrences
• www.mofpi.ac.in

• www.phfpl.com

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