Patanjali reports Rs 8,330 crore revenue in FY 19; food items account for 62% of total sales
BusinessToday.In November 19, 2019
Baba Ramdev's Patanjali Ayurved reported revenue of Rs 8,329.7 crore in the year 2018-19, the company said in its annual return filling. It is a marginal increase of 2.38 per cent from the previous financial year. The company did not report any profit or loss for the period.
The company stated that foods and beverages was the largest category with sales of Rs 5,184 crore, which accounted for 62.23 per cent of its total sales, as mentioned in a report in Business Standard. Chemical-based products, pharmaceuticals, medicinal chemicals and botanical products contributed 34.99 per cent, while wood and wood products, furniture, paper and paper products contributed 2.4 per cent, the report stated.
Patanjali Ayurved's performance last year indicates a turnaround from the downward slope the company witnessed in 2017-18. As per the company, introduction of GST in 2017 severely disrupted its operations. Baba Ramdev's closest aide and Patanjali's managing director, Acharya Balkrishna blamed the lingering effects of demonetisation and the hasty implementation of goods and services tax (GST) for lack of growth. "We have closed the year around the same level as the previous fiscal year's revenue," said Balkrishna.
According to reports, the initial glitches in GST and the realignment work cost the company two months of its business in 2017. Patanjali that relied heavily on branded outlets till 2017 started pushing its products in small retail stores to shore up sales. It also set a target of catering to three million outlets by the end of 2019.
The company that lost ground to rivals Hindustan Unilever recovered a little in 2018-19.