Baba Ramdev's Patanjali urban sales fall; rural slows down: Report

Patanjali (Image: Facebook)

After years of superior growth, Baba Ramdev’s Patanjali Ayurved witnessed a slowdown in fiscal year 2019, as competition wised up to the opportunity in the natural products markets.

According to an Economic Times report, sales of Patanjali fell 2.7 percent in urban areas during the year ending March 2019, while rural sales growth moderated to 15.7 percent—a far cry from the 21.1 percent and 45.2 percent growth, respectively, that it clocked in the year before.

In comparison, the overall natural products market grew 3.5 percent in urban areas and 5 percent in rural areas.

The ET report quoted the sales figure (in volume terms) from a report by Kantar Worldpanel (formerly IMRB), a consumer research firm.

Patanjali is credited with popularising the natural products market, riding on the appeal of its co-founder, yoga guru Baba Ramdev.

The company’s sales grew from a meagre Rs 500 crore in fiscal year 2012 to about Rs 10,000 crore in 2017. The company today has more than 200,000 sales counters and about 100 Patanjali mega stores along with online sale portal and swadeshi centres.

But a series of blows, including demonetisation, GST and issues in the company's supply chain meant, sales fell to about Rs 8,100 crore in 2018 and about Rs 4,800 crore in the first nine months of fiscal 2019.

Taking a cue from Patanjali, several of its established rivals have spruced up their all-natural product offerings. Many have also gone on to add natural ingredients to their otherwise standard product line-up in order to give them a herbal image.

Hindustan Unilever relaunched its Lever Ayush brand of ayurvedic personal care, products which the company claimed has been growing twice the rate compared to the average growth rate of the company, according to the ET report.

The ET added that about 60 percent of all new launches in 2018 were in the natural products category, a jump from 49 percent two years ago.