The next generation of the Baidyanath family, Ram K. Sharma and his cousin Suresh Sharma, has grown the company in perfect sync with modern scientific research and ancient ayurveda scriptures at pan India levels, as also overseas markets. Realising the need to encourage research in herbal healthcare, the family set up the Pandit Ram Dayal Joshi Memorial Ayurvedic Research Institute in Patna. Every year, the institute honours the best publication on ayurveda with a cash award of Rs2 lakh. 

The Rs800 crore group has five GMP manufacturing facilities across India. While R.K. Sharma’s family runs three units, at Kolkata, Patna and Allahabad, his cousin Suresh Sharma manages the Jhansi and Nagpur units. Sharma did not reveal the details of the arrangement, citing it as an internal family understanding; however, he affirmed that the group maintains a single balance sheet. The headquarters of the group is in Kolkata and it employs 1,600 people.

Quality products

The upgradation of manufacturing facilities is a continuous process for the company; this begins with the careful selection of raw materials that are handled under the most hygienic conditions. All activities are regularly validated and calibrated and stringent parameters are followed before the products roll out from the manufacturing units. Qualified ayurvedic doctors, engineers and chemists manage the company’s R&D, on which the company spends one per cent of its revenue. “Not only in-house R&D; we also tie up with external laboratories for testing,” says Ameve. 

Baidyanath’s products reach some 800,000 retail outlets, including 3,000 franchises, through 10,000 distributors across the country. It owns 50 exclusive stores. The company also offers its products through its portal, as well as its digital healthcare supply chain. “Baidyanath is a credible ayurveda company with quality products,” says B.L. Mittal, chairman, Sastasundar. “In the eastern region, we sell its products faster than its peers.” 

Chyawanprash is the highest selling product of the company. Its other popular items include churans, Kabz-har, Atrh Plus, Vita Ex, Ashwagandha, Amla Hair Oil, Dant Manjan Lal, etc. Baidyanath competes with other biggies in the segment, such as Dabur, Patanjali and Himalaya, all of which have grown faster through diversification, while Baidyanath remained subdued.

Admitting the company’s low presence in FMCG products, Rana Banerjee, the new CEO of the company, explains: “Consumer’s needs, aspirations and requirements have evolved and this has led to fast-moving health goods (FMHG) becoming a flourishing market in India. This is our focus area now.” Baidyanath roped in Banerjee to strengthen its business and product portfolios. Banerjee, who had earlier worked with Dabur, has also initiated the development of new products (from five to 15) in the next six months’ time.

Baidyanath is on a hiring spree and the senior professional manager is being given the freedom to run the company. The family, Sharma points out, will, in the future, step back and be involved only in growth strategy and planning of the company. “We intend to effect this change in the next two years,” he explains.

The Covid pandemic brought a lot of opportunity for ayurveda companies, as health and wellness benefits became key issues for citizens. Baidyanath has introduced a whole new range of ayurvedic immunity boosters, such as Ayush Kwath Churna, Ayursh Kwath Tablets, Immun Guard, Giloy Churna, Giloy Ghan Bati and a hand sanitiser – all launched during the lockdown period.

“Baidyanath is one of the oldest ayurvedic companies in the country, with a wider range of ayurvedic products than any competitors,” says a senior manager with a large FMCG company. “Ayurveda is its core competence but, sadly, the company could not leverage its experience and its brand equity to improve growth. Its visibility in FMCG is, unfortunately, insignificant.” 

Talking about the growth, Ameve argues: “Our growth may not be spectacular, but we survive under any circumstances. Our investment goes into product development and supply chain and not on marketing.”

Ayurvedic science is not merely a traditional Indian form of medicine but a perennial naturopathic system of healthcare. Sharma thinks it is important to create first-class research facilities and that the government should provide funds for ayurveda doctors and practitioners, like China does for its own herbal system, to promote ancient medicine. 

Baidyanath is trying to create a model of professionalism, where it is likely to grow faster and be able to adopt some corporate sophistication. However, the challenge for the new generation is to keep the century-old family business united.