Facing heat after the launch of GST (Goods and Services Tax) and demonetisation, yoga guru Ramdev's Patanjali Ayurved has now lost market shares in almost all categories, except toothpaste. Once a formidable challenger to multinational FMCG companies, the declining sales have hit Patanjali hard as the company loses its dominance in the consumer goods segment.
Experts cite the Goods and Services Tax (GST) rollout two years ago, coupled with a significant shift by large companies towards herbal products, for a downfall in the sale of Patanjali products. From detergents, hair care to soaps and noodles -- the FMCG company's total market share was lower in July compared to the year-ago period, The Economic Times reported citing the latest Nielsen data.
Patanjali's sales had plunged 10 per cent to Rs 8,100 crore in FY18 too, its annual financial report data suggests. The company has 3,500 distributors that supply to some 47,000 retail counters across India. Apart from having its online platform for the sale of its FMCG products, the company also runs 1,500 Patanjali chikitsalayas, 5,000 arogya centres and 25,000 swadeshi centres.
Facing a huge competition in the FMCG sector, Baba Ramdev-led company is now focusing more on solar, agriculture and food processing sectors. Ramdev had earlier said that he also wanted to spend over Rs 1 lakh crore in areas of education, health, research and development in the country. Taking a dig at multinational companies, he said global firms like HUL, Nestle, Coca-Cola, Procter & Gamble had done nothing for India, while his company wanted to spend the revenue earned through Patanjali for charity work.
Edited by Manoj Sharma