A-List Stars for 1 rupee product

There are product, and then there are products that go viral.

The 2002 launch Baba Elaichi belongs to the second category, the product’s ad showcases how the Bollywood star carries Baba Elaichi across the world with him. This star is none other than Akshay Kumar. They even got him to rap.

The ad found itself trending on Twitter for two days in a row.

It is not the first time when players in this category have used an A-list Bollywood celeb to cut across the audiences. For example, Rajnigandha Silver Pearls is endorsed by Priyanka Chopra. Their ads are themed around the fact that people grow big with their work and virtues. Vimal Pan Masala, features Ajay Devgnn, Paan-E-Shahi features Govinda, Pan Bahar features Saif Ali Khan and Pan Vilas features Shah Rukh Khan.

Financially, DS has had a good run since 2010, growing from Rs. 1400 crore to estimated Rs. 6000 crore in in 2016.

So ever wondered how can Baba Elaichi which sells for Re. 1 per sachet afford Akshay Kumar?

Elaichi (Cardamom) comes for ~1000 per kg.

Yield for Elaichi is close to 60%, hence the effective price is ~1667 per kg.

Considering they have the existing distribution network for Pan Masala and other overheads the net cost price for DS group would be ~2000 per kg.

Price of Baba Elaichi is 120 for 10gm meaning 12,000 per kg.

Do you still wonder how they afford Akshay Kumar?

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