Patanjali’s sales shrinks in cities and rural areas: FY19

Patanjali Ayurved’s sales has shrunk in India, sadly the growth reduced by 1/3 in rural areas though the overall market market for ayurvedic, organic and natural products continues to grow.

Patanjali sales drop as rivals launch natural products

Patanjali sales drop as rivals launch natural products

The Baba Ramdev-led firm’s urban volume sales declined 2.7% during the 12 months ended April 2019, while its rural sales grew 15.7%, according to Kantar Worldpanel (formerly IMRB), a global consumer research firm owned by communications and advertising giant WPP. The overall natural products market grew 3.5% in urban India, unchanged from a year-ago period, while the rural market expanded 5% against 4.4% earlier.

A year ago, the Haridwar-based company had grown 21.1% in urban areas and 45.2% in the hinterland during the same period.

“The natural segment is driven not just by core natural brands, but also ones introducing some natural ingredients in their products,” said K Ramakrishnan, managing director at Kantar Worldpanel. “It has helped incrementally build the parent brand, which may not be in the natural space at all.”

The slowdown of Patanjali, which had challenged multinationals’ dominance in the consumer segment, comes on the back of rivals rolling out herbal brands over the past two years after witnessing sharp consumer shift towards natural products. “Today, the naturals segment reaches almost all households in India and contributed a quarter of volume sales,” Ramakrishnan said. About 60% of all new launches in 2018 were in the natural space, a jump from 49% two years ago, the Kantar r eport said.

This directly impacted Patanjali’s financials – the company’s sales fell 10% to 8,135 crore in the year to March 2018, while it registered sales of 4,701 crore in the first nine months of FY19, according to provisional data by CARE Ratings.

Patanjali didn’t respond to an email query as of press time on Sunday.

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