Startup

Sales of Patanjali drop first time in the past five years

Patanjali Ayurved’s scamper to lead the FMCG race has been broken by a setback: the sales have fallen down for the first time in the last five years because of the disruption by Goods and Services Tax and the weak distribution network.

The standalone consumer goods revenue of the company is declined more than 10 per cent to Rs 8,148 crore in the year ended March 2018—the first time since 2013, according to a report by Care Ratings, Bloomberg reported.

“The decline was primarily because of its inability to adapt in time to the goods and services tax regime and develop infrastructure and supply chain,” the report said.

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It is found that the ambitious targets set by Ramdev baba, yoga guru, the founder and the brand ambassador of Patanjali Ayurved is no where to be seen.

Baba Ramdev wanted the company to reach Rs. 20,000 crore turnover in the first 3 to 5 years.

It had reached Rs 10,000 crore in revenues by FY16 from less than Rs 500 crore in FY12.

It is also understood that, Ramdev baba’s Rs 20,000 crore dream was corroding the very soul of his business i.e its distribution network.

The artful distribution strategy was the main factor behind Patanjali’s dazzling rise.

The low cost distribution system of Patanjali was awfully efficient in getting its produ cts acceptance against far

Patanjali’s low-cost distribution system was remarkably efficient in getting its products acceptance against far bulky rivals.

As the company has been doubling its sales targets each year and has set its sights on total domination over the Indian consumer, it has developed an uncontrolled hunger for the new distributors and the new channels of trade, often at the expense of older allies.

Originally, the recognition of Patanjali products has grown due to its own Chikitsalayas those have later helped in bringing the general trades on board at much lower margins than they would get from the competing products of big FMCG companies.

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Shravani