Patanjali loses ground on operational glitches, makes way for FMCG companies, says report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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After dominating the fast moving consumer goods (FMCG) sector for years, Baba Ramdev’s Patanjali is now facing issues on the operational front, a research article published by IIFL titled ‘What ails Patanjali’ notes, as reported by Business Standard.

According to IIFL, “The current slowing in Patanjali’s turnover is mainly due to change to a more complex system of separate distributors for each vertical, leading to time gap in delivery of products to retailers. The latter have stopped keeping stock of some Patanjali products,” BS reported.

The company’s most exclusive retailers’ average monthly turnover has dropped 50 percent as compared to two years ago, the report said, adding that an unattractive trade margin and a shortage of schemes on Patanjali’s products have led to dissatisfaction between retailers who do not seem to push the company’s products.

Patanjali took the FMCG sector by storm in a short span of time, recording Rs 5,000 crore in revenue in 2015-16, Rs 10,000 crore in FY17 and an estimated Rs 12,000 billion in FY18, while the seasoned FMCG companies like Dabur and Colgate to name a few lost their ground in the retail sector, the report added.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow