#ApoorvsShares
June 14, 2021
The Pandemic has shaken up all the industries. It has led Companies to re-think on their Business Models and re-work on their short-term and long-term goals. For most Businesses, the Short-term goal is to survive, reduce costs, try and be relevant and weed out non-performing assets.
Companies that are into the FMCG, Healthcare, and Pharmaceutical businesses, have seen a different growth trajectory but also challenges in terms of Operations, Deliveries, and Manpower. Though, these sectors had a good opportunity to be relevant with their offerings, and create a strong Brand Image in these trying times; some Companies just became too desperate in trying to benefit from the situation and get their Brand resonating with the masses.
One such case is that of Patanjali. A Brand that had become a household name once and one of the fastest-growing FMCG Company, giving a tough fight to other Bigger and Older FMCG giants like HUL, PNG, Nestle, Colgate, and the likes. The strategies used by Baba Ramdev led Patanjali proved to be very successful in helping the Brand in shouldering with the MNC giants1.
As per the latest reports2, Patanjali Ayurved alone achieved revenue of INR 3,562 crore in two quarters of the FY 2019-2020 from April to September.
And as a Group, Patanjali collectively expects to achieve the INR 25,000 crores in Revenues in the current FY out of which INR 12,000 crores is expected to be contributed by the Patanjali Group and the remaining INR 13,000 crores may be added from Ruchi Soya which it had acquired recently. Patanjali aims to be a INR 40,000 crore company in 2020-2021.
The above figures might seem promising, but the FMCG giant has been facing losses in revenues and slow growth over the past couple of years. According to a report3 by global consumer research firm Kantar Worldpanel, Patanjali’s sales, in terms of volume, has shrunk in urban areas, whereas its growth has reduced to a third in rural areas.
The firm’s sales volume has declined by 2.7 % in urban areas for the financial year ending April 2019, while its rural sales grew 15.7 %. On the contrary, the year before, the company grew 21.1 % in urban and 45.2 % in rural regions.
A recognized brand is among the most valuable intangible assets a company can own but Patanjali overestimated their brand value and their ability to dominate the market. In 2016, there were about 4,700 exclusive Patanjali stores selling Patanjali products. This has shrunk to about just 1,900 now.
The reason for this could be the unplanned expansion, a poor supply chain, inconsistent product quality, and business practices, combined with the slowdown.
All this has added up to the pressures on the company to break new grounds with its products, show innovation, and demonstrate speed. This perhaps explains why the company jumped the gun with its COVID cure. And, the way it was handled might lead to a further downfall in its brand value and market share.
On 23rd June 2020, Patanjali Ayurved Ltd. launched an Ayurvedic medicine kit that it claimed can treat coronavirus within seven days. The medicines, named "Coronil” and “Swasari" were developed based on research and trials on 280 patients across the country, said Patanjali's co-founder, Baba Ramdev.
"The whole country and the world was waiting for medicine or vaccine for corona. We are proud to announce that the first Ayurvedic, clinically controlled, trial-based evidence and research-based medicine has been prepared by the combined efforts of Patanjali Research Centre and NIMS," Ramdev was quoted as saying by news agency ANI4.
Soon after the launch, the Government of India’s AYUSH Ministry had pulled up Patanjali Ayurved Ltd., saying the company must stop advertising the product and selling it until its claims have been verified.
Such advertisements of drugs including ayurvedic medicines are regulated under the provisions of Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 and Rules made thereunder and the directives issued by the Central Government in the wake of Covid-19 outbreak. A provision in the Act5, makes it clear that misbranding a drug is a legal offense. Part of the misbranding provision is to make any false or misleading claims about the drug. The drug is then liable for confiscation, and the company executives liable for prosecution under the Act.
Perhaps Patanjali wanted to be first off the block in a race that would have meant a significant windfall for Patanjali as the earliest results from other Ayurveda trials done by Dabur India Ltd., Sri Sri Tattva and Shukla Ashar Impex Pvt. Ltd. were not expected before mid-July. But in this race, Patanjali ended up hampering its own Brand image thus affecting its overall Brand Value.
The entire world has been contending with the COVID-19 pandemic for some time now, and efforts are on to find a treatment and a vaccine. Several drugs and treatment therapies are being tried and tested to find a cure for this pandemic. In the middle of this ardent R&D activity, some questions come to mind — what about Intellectual Property (IP) protection? How would companies commercialize a cure — if and when it is finally found? How would the cure be made available to the public at reasonable prices?
At such challenging times, countries should not be afraid of using the powers vested in them by virtue of provisions written in their Intellectual Property Right Laws and save the lives of their people. Many Countries like Israel, Germany, Canada, and France have proactively worked on it and eased their laws, even enacted new laws to favor Compulsory Licenses to be granted in order to effectively use, produce and sell any medicine or vaccine protected by IPR in that country.
A patent grant gives the patentee, all the rights, title and interest in the invention, thereby creating a negative right in rem – a right to restrict the third party from making, using, offering for sale, selling or importing the invention6.
Applying this to the current scenario, if any patented vaccine (post regulatory scrutiny – clinical trials, etc.) is found to be effective in the treatment of patients, no other entity apart from the patentee will be able to manufacture and sell the drug, unless specifically authorized by the patentee.
Invention vs commercial gain vs universal access to economical healthcare has been and continues to be a topic of a lot of debate. In India, patent rights may be withdrawn in exceptional circumstances, to maintain a fine balance between the monopoly rights enjoyed by a patentee and the duty of the Government to provide accessible and reasonable public healthcare services7.
Fortunately, The Patent law in India allows the Central Government to take over any patent that can be of use in a state of national emergency or circumstances of extreme urgency8. The provision of compulsory license can also be availed if a potential IP is of use in a state of a public health crisis or against any epidemic9.
These provisions essentially have consequences that are not in the best interests of the patentee. Therefore, the most suitable option could be that the patentee, looks at deliberate licensing at reasonable terms. This way, a patentee would safeguard its patent from the above, at the same time establishing itself as a bonafide to the world at large. Actions such as challenges, requests for Compulsory Licences, or acquisition of the patent would resultantly be difficult to sustain. Also, this not only ensures that the patentee can negotiate a better deal, but also guarantees that the drug is available to the public at affordable prices.
The real-life example of this could be of ‘Remdesivir’, a direct acting antiviral drug that prevents viral RNA synthesis. The drug is currently being evaluated as a possible treatment protocol for the SARS-Cov2 virus. The USFDA has issued an Emergency Use Authorization (EUA) for emergency use of the drug for the treatment of hospitalized COVID-19 patients10.
Remdesivir is a classic case of the investigation of existing drugs for new therapeutic purposes. The drug was initially developed as a cure for Filovirus infections and has been patented by Gilead Lifesciences in many countries, including India11. News reports suggest that Gilead has entered into voluntary licensing agreements with multiple generic drug makers to allow them to manufacture the drug for distribution in 127 countries12.
Research is underway on many other patented drugs being repurposed for their use in the current pandemic. Desperate times call for desperate measures, it would be interesting to see if the Government will have to resort to using its powers, under the Patents Act, 1970, to successfully balance its responsibility of guarding public health with a patentee’s exclusivity rights.
However, in our view, the interests of the researchers and research organizations should also be safeguarded to maintain a balance between stakeholders. Granting compulsory licenses for a researcher's IP, to help a country, curbs the enthusiasm with which the researcher has made that invention. World organizations and governments, therefore, should ensure that such policies will be reversed when the state of national emergency ends and let the researchers enjoy the IP rights or benefits that they deserve for their efforts, time, and money devoted for the invention of the vaccine.
This research paper is Co-authored by -
1) Mr. Apoorv Arvind Houzwala
2) Mr. Shantanu Arvind Houzwala
References:
Partner
With 15+ years of spatial design experience, Sveta leads the team that helps extend brands to three-dimensional spaces. She has the ability to visualise intangible attributes such as brand positioning and translate them to materials, finishes and furniture in every space. Her belief is simple – ‘every detail in retail design has to reflect the brand.’ Over the years she has worked with some of the biggest brands in the hospitality and retail industry. At ABND, she is pivotal in projects that require branded interior design, retail design, way-finding and signage systems. Sveta is as defined and disciplined in dance as she is in her work!
March 1, 2018
The pioneer of liberal education in India, Pune based FLAME University is creating waves in liberating young minds. Over the years, the institution has built a reputation for itself that is significant enough to reckon with. Built on the methodology of psychologist Howard Gardner’s ‘multiple intelligence,’ there is a renewed focus on interdisciplinary learning. A vast array of options lies for students as there are over 250 unique major-minor combinations to choose from here. While you can major in subjects like Economics, Psychology, International Studies, Environmental Studies and Journalism, you can also graduate in Dance, Music, Theatre and Design. At FLAME, you could also do a BSc in Applied Mathematics and BBA degrees in Finance, Marketing, Communications Management, HRM, Operations and Entrepreneurship.
At a time when private players are still not trusted in the field of higher education, FLAME University is still a clear preference for young minds, owing to its unique approach. The string of collaborations it has made makes it an institution of excellence which stands out. Renowned foreign universities including Nuffield College, York University of Canada, and Wellesley College, Babson Collaborative and other institutes of repute have tied up with FLAME University.
At ABND, FLAME University was given a rejuvenated identity. Several competing institutions offered Liberal Education as part of the curriculum as well. In an attempt to set themselves apart from the clutter, FLAME University needed to rebrand themselves by giving Liberal Education a new way of expression we proposed for them – ‘Diversity of the Mind.’ To know more on how this reputed institute was envisioned anew and given a dynamic visual identity. To know more Click Here
Founder-Partner
Kunal says, “I’ve no specific talent, I’m merely inquisitive.” While his past experiences include product design, retail branding, packaging and design for manufacturing his true passion lies in branding and strategy. He’s the go-to person whenever the crafting needs finesse or the creation needs a fresh perspective. A certain sixth sense guides him in business and branding, honing the skill through experience. Kunal is also a guest lecturer and visiting faculty at a college in Mumbai, teaching branding to young bright minds.
February 27, 2018
Coming into view, the emerging logistics company, Grab, have recently received heavy government investment backing from Small Industries Development Bank of India’s wholly owned subsidiary, SIDBI Venture Capital Limited. Pratish Sanghvi, the co-founder of Grab, said that this funding of $1.5million is detrimental to their growth as the company is currently working on a crowdsourcing distribution model. SIDBI has joined a list of their big investors including Aramex, Zomato, Sixth Sense Ventures and Oliphans Capital. In spite of the hyperlocal delivery space being overcrowded, Grab was a prominent player for SIDBI to consider because of its sector-agnostic approach and its high chances of being EBITDA positive.
Providing hyperlocal and intracity logistics services to businesses including restaurants, food tech platforms, pharmacies and banks, Grab was once only doing food deliveries, being known as Grab-A- Grub. ABND had worked on the brand’s identity when they wanted to expand from being a food delivery startup to an all-encompassing hyperlocal logistics company. Changing from Grab-A- Grub to Grab, their rebranding made for a more sharper and agile brand. To know more Click Here
February 22, 2018
Thursdays at ABND just got chocolaty! Each of us brought our favourite chocolate to office. There was a huge goblet brimming over with chocolates of all kinds, apart from our favourite ones too. In a game of passing the parcel, the rubik’s cube filling in for the parcel in the last moment, the chocolates were exchanged amongst the chocoholics! What you got to pick in the lottery became your chocolate.The twist in the story came with the fact that the last person to pick her own chocolate in the lottery, got a chance to win the entire Goblet of Chocolates! Poornima won the Goblet. Following that we quirked it up by trading some of our chocolates with the Goblet Queen. It was a fun trade off. There were some toothaches after, but it was a happy sugar rush.
February 19, 2018
After back to back workshops and presentations through the weeks, the team felt like taking a break under the sun. Around the coffee table, there were some games and some lively chatter. While we had started the day all pumped up with a presentation for brand identity that went down well with the client, we ended the day on a light note at a coffee shop. From acting out the weirdest of movie names like ‘Matru ki Bijli ka Mandola’ and ‘Chameli ki shaadi’, we had great fun breaking down apparently simple ones too, when playing dumb charade. All of us had a crazy good time guessing interesting symbols and rhyming words when dissecting and decoding the films. We, at ABND, love our breaks as much as we enjoy the action!
Associate-Strategy
An experimenter at heart, Nikita’s experiences in interior design, sculpture design, advertising and branding has made her flexible to new ideas and new spaces. Nikita is a certified scuba diver. She has her own website, showcasing beautiful illustrations and paintings. Her art speaks of her love for animals and her admiration for the creatures of the sea. She loves to travel around the world and brainstorm on challenges.
Associate-Strategy
Stringing up the world with words, Sumanjari is driven by creativity, but with a purpose. Munching at her table always, she can (over)think but not on an empty stomach. She loves her coffee bittersweet and her strategies well researched. Academically inclined, she has written research papers on a wide range of topics from religion and music to branding to euthanasia. Sumanjari values spending time with her students, lecturing at a college by the weekends apart from her engagement at ABND.
Head-Creative
With a strong influence in the Applied Arts, our happy-go-lucky green haired creative lead has been a constant in team ABND right from its founding years. She is always humming a tune or two and livening up the pulse of the workspace. Ekta’s optimism and openness to new ideas fuels her creative best. Quirking it up in her attire, food and art, Ekta’s innovative at heart. She has a childish impulse of surprising others. Her love for bikes and nature deserves a special mention!
Founder-Partner
Priyanka Sachdev Shahra is a design thinker and serial entrepreneur. Her passions lie in bringing meaningful projects to life. Priyanka’s experience with entrepreneurship begun in 2010, when she cofounded ABND with Kunal Vora. Always having strongly felt for what’s environmentally and socially sustainable, she set up One With Earth in 2014 as a vehicle to support such projects. She has also been involved in an interesting venture which is a first of its kind in Singapore, an online swapping platform called Swapaholic. Priyanka manages the Singapore office of ABND.
Associate-Creative
A woman of less words and more action, this designer on the dot likes to keep it short and sweet. Having mastered in design in college, Poornima is driven by discipline and style. Zumba is a favourite pastime and she is also passionate for the cause of saving stray animals. Simplicity is what defines her spirit, whether she is designing or talking.
Associate-Creative
Debugging and resolving errors, Hitesh is the techie in the house responsible for digital and web strategies. A smooth operator, he is persistent in problem-solving. He is very passionate about solving the Rubik’s cube and we can see him at it often. We can tell that at school he must have been immersed in his science projects, which led him further to study information technology. In sports too it’s always the technique which fascinates him. The music in his ears is always loud enough for the entire office to hear!
Associate-Creative
With several years of experience in Interior Design, Deepu is the go to guy for detailing each space to the T. He lives Mies Van Der Rohe’s quote “god is in the detail”. His experience helps the team visualize design concepts from a detailed point of view, mapping it on to real spaces. A quiet and simple soul, we can always see Deepu working at his desk with complete concentration. A workaholic at heart, he is also a cricket buff and a harmonium player. He likes sticking to a rule book but won’t mind swinging to a catchy rhythm when he’s off work.
Administrator
Organized and to the point, our administrator likes keeping the house in order. Florie also has varied talents in cooking, sewing and embroidering. Diligence drives us as a team and so does it drive the person who holds the pack together. Florie is fond of country music and likes reading murder mysteries.