For a direct answer, Singulaere Entitaet is absolutely correct.
This will attempt to provide a more conceptual answer:
How can any publisher claim copyright on the teachings of person who lived in India centuries ago?
The publisher is not claiming copyright on the teachings of anyone. You can't claim copyright on ideas (any idea; technical or systematic ideas are protected by patents, not copyright); rather, the publisher is claiming copyright on the particular "creative" version of the teachings that they have published.
Since these ancient teachings are in the public domain, anyone can make a derivative work from them; the publisher has done so, and so can claim copyright on their derivative work; this only extends to their "creative"(in the legal, rather than common meaning) changes to the original work(which they do not have copyright over), including such things as: translation and/or modernization of the text, formatting, arrangement and organization, fonts, foot notes, chapter titles, added images or diagrams, and other things of this nature.
Essentially, you can do whatever you want with Chanakya Niti, but not that book's version of it. The publisher could conceivably still sue you, but would have to show that you used their version, rather than a public domain version.
How can make money on this?
From a legal perspective, one can absolutely make money on this. However, barring something special, everyone can do exactly what you do, so you can't make a lot of money (or others will undercut you).