Khadi Natural’s parent company sets its sights on the premium personal care market with Atulya
Beacon Bio Life Sciences, the makers of Khadi Natural, launched Atulya, an Ayurvedic personal care brand, last year—targeted at consumers who desire premium products to enhance their personal care regimen.
In 2008, Gaurav Singh, a third-generation entrepreneur, launched a personal care products vertical under the brand ‘Khadi Natural’. This was the time when the personal care market was undergoing a disruption of sorts, paving the way for products based on natural and herbal ingredients.
The word ‘khadi’—with its resonance with Mahatma Gandhi, the pioneer of the Khadi movement—immediately struck a chord with customers. In the years that followed, Khadi Natural gradually evolved into a popular brand with a revenue of over Rs 100 crore, an extensive retail footprint in 18 states across India, a robust online presence, exports to over 25 countries, and a space in the heart of several customers.
However, despite Khadi Naturals' well-established presence in the market, last year, Singh decided to carve out another line of personal care products, based on Ayurvedic formulations, under the name ‘Atulya’.
Why did the entrepreneur choose to launch a new brand, instead of piggybacking on Khadi Natural’s success in the personal care space?
Singh explains the brand philosophy behindin an interview with SMBStory.
While Khadi Natural remains steadfast in its mission to provide paraben-free and natural products to consumers, there exists a promising market in the realm of Ayurvedic products in the premium segment, he says, adding that Atulya aims to tap into this opportunity.
Atulya was launched in 2022 under the same parent company of Khadi Natural—Beacon Bio Life Sciences Private Limited.
According to the founder, the company initially attempted a packaging makeover for Khadi Natural, with premium pricing, but this effort failed to elicit the desired customer response. Singh realised that it didn’t make sense to make significant alterations to the existing Khadi Natural brand, which already had a loyal customer base.
Subsequently, after thorough research, the company concluded that introducing a distinct brand would be more effective than revamping its existing brand. This would allow the company to offer a fresh and distinct experience to customers and also redefine the pricing.
Atulya operates in the premium segment of the personal care market with prices ranging from Rs 180 to 599, as opposed to Khadi Natural, whose products are priced between Rs 56 and Rs 350. It is positioned as a vegan brand, with PETA certification, made using superior plant-sourced ingredients.
“Atulya strives to meet the needs of consumers who are willing to use premium products and enhance their personal care regimen. It brings organic, personal care products which are cruelty-free and sustainable,” says Singh.
The brand has filed for EcoCert certification, one of the largest organic certification organisations in the world.
Creating a distinct brand identity
In a year, Atulya has clocked a turnover of Rs 2 crore and it is looking to close FY24 with Rs 6 crore.
The brand's range includes products for skincare, haircare, body care, eyecare and wellness made using ingredients such as amla, bhringraj, hibiscus, black seed, tea tree, and aloe vera.
Singh says Atulya's standout proposition amidst competition in the haircare segment is its use of veg keratin, made using plant-based ingredients, which has garnered immense popularity among consumers. Typically, keratin is obtained from animal sources, he adds.
The products are manufactured at Beacon Bio Life Sciences’ plant in Mundka, Delhi, while the raw materials are directly sourced from farmers. The company has invested around Rs 30 crore on a new plant in Manesar, Gurugram, which Singh says, will be utilised to ramp up production for Atulya.
Atulya is a D2C, B2C and a B2B brand that is sold through modern trade, premium general trade stores, and the Reliance chain. Its target audience are consumers in the age group of 18-50 years, in Tier I and II cities.
Challenges and the way forward
According to an IMARC report, the Indian Ayurvedic products market was valued at Rs 626 billion in 2022 and is expected to reach Rs 1,824 billion by 2028, at a CAGR of 19.3%. Organic Harvest, Bare Necessities, Forest Essentials, and Kapiva are some of the major players in the space.
Although the market has huge potential, Singh is concerned about the mushrooming of brands every other day, claiming to be organic and natural. “There is no authenticity and nothing to track these players and that’s the biggest challenge,” he says.
Talking about the future prospects of the brand, Singh says the company is aiming for a slow and steady growth for Atulya, so that it acquires unwavering customer loyalty and stays the course.
The company is targeting an overall group turnover of Rs 400 crore in the next two years.
Edited by Swetha Kannan