Patanjali Ayurved's revenue increased by a marginal 2.38% to Rs 8,329.7 crore in the year to March 2019, against the previous financial year, according to the company's annual return filed with RoC sourced from business intelligence platform Tofler. The firm did not report profits in the filings.
While the fast-moving consumer goods firm's revenue stood at Rs 8,135.64 crore in FY18, it was Rs 9,006.25 crore in FY17. Profits dipped to Rs 342.55 crore in FY18 compared to profits of Rs 1,190.43 crore in FY17.
In an interview to FE earlier this year, managing director Acharya Balkrishna told lack of proper planning and strategy at Patanjali impacted the firm’s growth. The company, further, took a hit on sales after competitors launched Ayurved products to counter Patanjali's rise.
We are expecting to report good revenues in FY20, Balkrishna had said. "There is a significant demand for our products but due to cracks in the supply chain, we have not been able to make inroads in rural India. Our focus will be to work on this particular area this year." In 2017, Patanjali had claimed the firm's revenue would double every year to cross Rs 20,000 crore in FY18.
Major FMCG players revamped and launched their own natural portfolios. In 2017, HUL relaunched Lever Ayush, extending it to the mass segment. Ayush, which was launched in 2001 at the premium-end, ran out of gas in 6-7 years. HUL also acquired Mosons Group's flagship brand Indulekha to augment its position in the personal care basket.
Colgate, which already had presence in the natural oral care segment with 'Active Salt' toothpaste, launched the Cibaca Vedshakti in 2016, followed by the introduction of Swarna Vedshakti a year later to up its game.
Patanjali, which sells natural food products to herbal home care items to ayurved medicine and also forayed into retail, hogged the limelight with its differentiated advertising - highlighting pricing difference with competitors, underlying the fact that Patanjali is an India product, Edelweiss had said in a report earlier. Although yoga guru Baba Ramdev's strong brand equity initially clicked with consumers, competition came out with focused ads and provided a mix of innovation and pricing cut. In Patanjali's case, innovation was very limited, analysts said.