May 21: Patanjali Managing Director Acharya Balkrishna has blamed policies of Prime Minister Narendra Modi including demonetisation and GST roll out for the company ceasing to deliver a positive growth in sales during the fiscal.
Patanjali’s revenue for the fiscal remained around the same level as that of the previous year as revealed by Acharya Balakrishna. Speaking to Mint, he said that the lingering effects of demonetisation and the implementation of goods and services tax (GST) have affected the growth of the company. He however expressed confidence that the company would regain its growth trajectory by next year.
Back during the time when the PM triggered the demonetisation move, Patanjali co-founder Ramdev lauded the move saying that it would expose a scam of Rs 3-5 lakh crore. The move, however, is believed to have caused the damage on the growth of Patanjali, which has consecutively delivered impressive growth over the previous years.
Despite criticisms coming in from the company MD, experts believe that quality issues surrounding the products from Patanjali have also played a major role in holding up the growth of Patanjali during FY18. Issues regarding the distribution and supply chain are also being highlighted, with experts opining that the department wasn’t ready to handle the big volume as according to its growth.
“The company can’t grow beyond a point riding on just brand Ramdev,”said Mumbai-based Dolat Capital Market. Additionally, some also concerned that the lack of innovation from the brand has also caused the deterioration of its growth.
Ramdev earlier predicted that it would double revenue every year to surpass Rs 20,000 crore mark by the end of March 2018. Patanjali Ayurved also set the target to overcome the revenue of HUL, the largest FMCG in the country.