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A disruptor in the FMCG space, Patanjali is now struggling under the weight of its own success

Nearly two years after Patanjali first reported a slowdown in its revenue growth rate, its struggles with managing the distribution continue. ET Prime’s conversations with its current and former distributors reveal that the company is losing ground to rivals in its staple segments — facewashes, ghee, honey, and even toothpastes.
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soumyagupta
16 Jan 2020 6 Mins Read 8 comments
Acharya Balkrishna (left), CEO of Patanjali Ayurveda, with Baba Ramdev at a media conference in May 2017 in New Delhi. Getty Images
Acharya Balkrishna (left), CEO of Patanjali Ayurveda, with Baba Ramdev at a media conference in May 2017 in New Delhi.
“Nestlé ki chidiya udd jayegi, Hindustan ka lever dheela ho jayega, Colgate ka gate band ho jayega. We will give these companies moksha .” That’s what the charismatic yoga guru Baba Ramdev chanted to a cheering crowd a couple of years ago. His confidence, even arrogance perhaps, was evident. After beginning in 1997
customers into the idea of Patanjali because it has not created enduring brands within each category it competes in (except toothpaste brand Dant Kanti). That makes its Chikitsalayas rather important points of sale and branding. But they too continue to suffer on the back of undercutting of sales areas and prices. ( Graphics by Sadhana Saxena)
“Nestlé ki chidiya udd jayegi, Hindustan ka lever dheela ho jayega, Colgate ka gate band ho jayega. We will give these companies moksha .” That’s what the charismatic yoga guru Baba Ramdev chanted to a cheering crowd a couple of years ago. His confidence, even arrogance perhaps, was evident. After beginning in 1997 customers into the idea of Patanjali because it has not created enduring brands within each category it competes in (except toothpaste brand Dant Kanti). That makes its Chikitsalayas rather important points of sale and branding. But they too continue to suffer on the back of undercutting of sales areas and prices. ( Graphics by Sadhana Saxena)

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