{"id":7309,"date":"2019-11-20T03:51:03","date_gmt":"2019-11-19T22:21:03","guid":{"rendered":"http:\/\/udaen.info\/?p=7309"},"modified":"2019-11-20T03:51:03","modified_gmt":"2019-11-19T22:21:03","slug":"patanjali-finds-the-magic-potion-its-revenue-up-2-4","status":"publish","type":"post","link":"https:\/\/udaen.info\/?p=7309","title":{"rendered":"Patanjali finds the magic potion; its revenue up 2.4%"},"content":{"rendered":"
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Patanjali finds the magic potion; its revenue up 2.4%<\/h2>\n
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While the company did not reveal its profit or loss for the period, according to its fillings, food and beverages was the largest category – accounting for 62.23 per cent or Rs 5,184 crore of its total sales.<\/strong><\/p>\n

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After a year of faltering sales, Patanjali Ayurved has managed to address the slide.<\/p>\n

The ayurveda major clocked Rs 8,330 crore turnover for 2018-19, 2.4 per cent higher than Rs 8,136 crore it had posted in 2017-18, according to its fillings with the Registrar of Companies.<\/p>\n

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While the company did not reveal its profit or loss for the period, according to its fillings, food and beverages was the largest category – accounting for 62.23 per cent or Rs 5,184 crore of its total sales.<\/p>\n

Chemical-based products, pharmaceuticals, medicinal chemicals and botanical products – primarily representing its personal care range – contributed 34.99 per cent to its top line.<\/p>\n

Wood and wood products, furniture, paper and paper products contributed 2.4 per cent.<\/p>\n

The top line growth for Patanjali that once used to grow by leaps and bounds – between 2012-13 and 2016-17 – has come down since.<\/p>\n

However, its performance last year indicates a turnaround from the downward slope that it found itself in 2017-18.<\/p>\n

From Rs 8,964 crore operating revenue in 2016-17, it fell by 9.3 per cent in 2017-18.<\/p>\n

According to the firm, introduction of Goods and Services Tax (GST) in mid-2017, severely disrupted its operations.<\/p>\n

The initial glitches related to GST and the realignment work required due to its implementation cost the firm two months of its business in 2017.<\/p>\n

A report by CARE Ratings said the decline was \u201cprimarily because of its inability to adapt in time to the GST regime and develop infrastructure and supply chain.\u201d<\/p>\n

To counter the falling sales, Patanjali had adopted a multi-pronged approach in 2018.<\/p>\n

The firm, which depended heavily on branded outlets till 2017, began going deeper into the market by adding mom and pop stores.<\/p>\n

To strengthen its sales and distribution in general trade, Patanjali hired 11,000 field personnel in mid-2018, and set a target of doubling that number within the financial year.<\/p>\n

Patanjali Ayurved, which used to see 70 per cent of its sales from branded Patanjali stores till early-2018, set a target of catering to three million outlets by end-2019.<\/p>\n

Patanjali, which was losing share to its rivals in the market like Hindustan Unilever and Colgate, regained some of the lost grounds during 2018-19.<\/p>\n

According to data from Nielsen, Colgate-Palmolive lost market share, primarily to Patanjali and Dabur.<\/p>\n

HUL\u2019s share dipped by 80 basis points to 16.4 per cent.<\/p>\n

According to analyst firm Jefferies estimates, Colgate-Palmolive lost its market share by eight percentage points since 2015 as Patanjali\u2019s herbal-natural products attracted consumers.<\/p>\n

Colgate, in fact, launched a new sub-brand \u2018Ved Shakti\u2019 and revived the brand Cibaca to counter the growing threat<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Patanjali finds the magic potion; its revenue up 2.4% While the company did not reveal its profit or loss for the period, according to its fillings, food and beverages was the largest category – accounting for 62.23 per cent or Rs 5,184 crore of its total sales. After a year of faltering sales, Patanjali Ayurved […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_exactmetrics_skip_tracking":false,"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[43,14],"tags":[],"class_list":["post-7309","post","type-post","status-publish","format-standard","hentry","category-business","category-investment"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t