Wednesday, 12 June 2019
Three years ago, yoga guru and entrepreneur Ramdev was riding high.Customers were snapping up Patanjali Ayurved's affordable, Indian-made products such as coconut oil and ayurvedic remedies, in a mounting threat to foreign companies that had bet big on India.
"Turnover figures will force multinational companies to go for kapalbhati," saffron-robed Ramdev declared in 2017, in reference to a yoga breathing exercise, vowing sales would more than double to Rs. 20,000 crore ($2.84 billion) in the year to March 2018. But instead Patanjali's sales plunged 10 per cent to Rs. 8,100 crore, according to its annual financial report.And in the last fiscal year, it likely deteriorated further, say company sources and analysts.
Provisional data indicated sales of just Rs. 4,700 crore in the nine months to December 31, CARE Ratings said in April, based on information from Patanjali.According to interviews with current and former employees, suppliers, distributors, store managers, and consumers, Patanjali's ambitions have been hobbled by missteps.
In particular, they highlight inconsistent quality as Patanjali expanded very quickly.The company says its rapid expansion did bring some teething problems, but that they had been overcome.Patanjali also suffered, like many others, from Prime Minister Narendra Modi's 2016 ban on high-denomination banknotes and 2017 introduction of a new goods and services tax. The moves disrupted economic activity.