Baba Ramdev claims anti-Ayurveda cartel targeting Patanjali; trying to damage reputation

Baba Ramdev, the founder of Patanjali Ayurved, a prominent ayurveda-based consumer goods company in India, has accused a group consisting of corporations, pharmaceutical companies, intellectuals, and politicians of working against his company. In an interview with ET, Ramdev claimed that this alleged cartel aims to undermine Patanjali, which he believes symbolizes nationalism and self-pride. He further asserted that false information is being spread about the brand, and that there is a concerted effort to damage the reputation of Patanjali and natural products.

Despite these challenges, Patanjali has continued to focus on its objectives, which include increasing investor value, expanding distribution and sales, conducting research, promoting innovation, and developing e-commerce capabilities. The company has also prioritized premiumization as a key strategy moving forward.

In the financial year 2023-24, Patanjali’s total revenue from operations amounted to Rs 31,721.35 crore, with the food and FMCG business contributing Rs 9,643.32 crore. This marked an increase in the share of revenues from the food and FMCG segment, which rose from 19.49% in FY23 to 30.06% in FY24.

Patanjali’s rapid growth and popularity in the past decade have forced global and local players such as HUL, L’Oréal, Colgate Palmolive, and Dabur to expand their own ayurveda portfolios. However, the company has faced challenges in recent times, including intense competition, regulatory issues, and criticism over the quality of its products.

To transform its image and address these challenges, Patanjali has been recruiting professionals to handle key positions within the company. Sanjeev Asthana, the chief executive of Patanjali, has dismissed claims that the company’s market share and brand image have weakened due to quality concerns and increased competition. He highlighted that Patanjali holds a two-thirds share in the herbal toothpaste market, is the fourth largest biscuit player in the country, and maintains a dominant position in herbal skincare and homecare. Asthana added that the company has 10 brands that lead in their respective businesses.

According to Asthana, Patanjali’s packaged consumer business has been growing at a rate of 15-20% overall, and revenues have doubled over the past 3.5 years, reaching Rs 31,000 crore. He emphasized that Patanjali’s growth rate has been impressive, whether in terms of market share or distribution.

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