Baba Ramdev claims there are efforts to harm Patanjali’s reputation, especially regarding Ayurveda and natural products. Despite these issues, Patanjali is committed to boosting investor value, expanding sales and distribution, advancing research and innovation, and focusing on e-commerce and premium products.
Patanjali, which pushed global and local brands like HUL, L’Oréal, Colgate Palmolive, and Dabur to improve their Ayurveda lines, now faces major challenges. These include tough competition, regulatory issues, and criticism of its product quality.
Strategic Acquisition for Growth
On Monday, Patanjali Foods Ltd announced it is buying Patanjali Ayurved Ltd’s home and personal care business for ₹1,100 crore. Ramdev said this will help the company grow and benefit investors, partners, and retailers by saving costs and improving efficiency.
The acquisition includes all assets and liabilities related to the home and personal care business, including employees, distribution networks, contracts, and necessary approvals. There is also a 20-year licensing agreement with a 3% turnover fee and other conditions.
Product Portfolio and Market Position
Patanjali Foods’ products include edible oils from Ruchi Soya, biscuits, cookies, cereals, noodles, toothpaste, shampoo, and soaps. Despite scrutiny and competition, CEO Sanjeev Asthana says Patanjali holds a strong market share in several areas, including herbal toothpaste and skincare.
Financial Performance and Growth
Asthana noted that the company’s packaged consumer business has been growing 15-20% annually, with revenues doubling over the past 3.5 years to ₹31,000 crore. This growth is due to increased market share and distribution.
Supreme Court Order on Misleading Ads
Regarding the Supreme Court’s order to stop misleading ads, Ramdev clarified that the issue wasn’t about product quality or wrongdoing. The matter has been settled, but the court warned that future false claims could lead to heavy fines.
Courtesy : The Economic Times | Industry
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