HUL is gearing up to give a tough fight to Patanjali. Here’s how

Hindustan Unilever is planning on competing with Baba Ramdev’s Patanjali and the former is looking forward to launch Ayurvedic personal care products.

Patanjali has turned into a Rs 5,000-crore company within a decade. Although still small compared with HUL's Rs 30,000 crore plus revenue, it has caught the attention of all fast-moving consumer goods giants.

And above all that, Ramdev hasn’t been modest about its success and recently he said Patanjali can beat multinational giants such as Unilever (HUL's parent), Colgate and Nestle.

HUL, the maker of Lux, Dove and Rin, will launch around 20 products - toothpaste and skin cream to soaps and shampoos - under its existing Ayurveda brand Ayush.

Ayush was launched in 2001 as a premium brand but had lost momentum by 2007. Now, the positioning will be mass market - price points between Rs 30 and Rs 130.

HUL has already been in such desi feud earlier. In mid-1980s, Ahmedabad-based Karsanbhai Patel's Nirma, a detergent brand, toppled HUL's Surf from the shelves of middle class and lower middle class Indian homes. The Indian unit of the Anglo-Dutch FMCG Company rolled out Wheel, a low-priced option.

Given Hindustan Unilever's determination to take on Patanjali, and the latter's aggressive future plans, 2017 may see another classic corporate battle in the FMCG space.

"Ayurveda is a growing trend. Lever Ayush is designed to attract and retain consumeRs with authentic Ayurvedabased offerings,” Sandeep Kohli, executive director, peRs onal care, HUL, told ET.

Patanjali's rise has led to otheRs exploring the Ayurveda and herbal products space. L'Oreal launched a hair care range under Garnier Ultra Blends made with "natural ingredients,. Colgate brought Cibaca Vedshakti to the market.

HUL's personal care business accounts for nearly half its sales and 60% profits, mainly due to a large portfolio of premium products.