Article
Market development through integrating value chains – a case of Patanjali Food and Herbal Park
In 2004, Swami Ramdevji, founder of Patanjali Food and Herbal Park, was addressing a yoga camp. He advised the audience to consume Amla (gooseberry) and Aloe Vera juice for better health. His listeners raised a question as to where will they get these juices in pure form. They reported that they did not have enough time to extract fresh juices from Amla and Aloe Vera daily. It was suggested then that these juices could be provided by “Patanjali” to the masses. The idea was struck. It was common knowledge that post-harvest losses in food products, in India, was 25-30 per cent, valued at approximately US$7.5bn per annum. Farmers of Pratapgarh (a place in the state of Uttar Pradesh where gooseberry is produced) wanted to stop the cultivation of Amla, as they were not getting a remunerative price for their product. This scenario was calling for a revolutionary approach. Thus came in Patanjali, when Swami Ramdev took the decision to establish food-processing plants and manufacture Ayurveda-based products. The fundamental concept of Patanjali was to efficiently use the agricultural produce of millions of rural masses. They conceived the idea of economic processing of the farm products into daily use consumables, ranging from Ayurvedic health supplements to foods products and cosmetics. The main objective of Patanjali Food and Herbal was to create a sustainable business benefiting all the stakeholders. The backbone of the Patanjali food park existed in the robust backward linkage and forward linkage. After value-based integration of the value chain, whether Patanjali Food and Herbal Park would be able to attain a strategic advantage and safeguard from business environment threats was to be observed.
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