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Last Updated : Aug 09, 2019 05:22 PM IST | Source: Moneycontrol.com

After sales slow, Baba Ramdev's Patanjali fades from TV ads

A sharp slowdown in sales of Patanjali Ayurveda, co-founded by yoga guru Baba Ramdev, has seen the company cut down on its advertising spends.

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A sharp slowdown in sales of Patanjali Ayurveda, co-founded by yoga guru Baba Ramdev, has seen the company cut down on its advertising spends.

According a Business Standard report, the company has steadily lost its visibility on the advertising front when it comes to both TV and print ads.

The report quoted data by the Broadcast Audience Research Council (BARC) that shows that Patanjali is no longer among the top 10 advertisers in India, a spot it lost last year. In the years 2016 and 2017, Patanjali was the third and sixth largest advertiser, respectively.

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Patanjali entered a high growth phase between the years 2012 and 2017 when its sales zoomed from Rs 500 crore to Rs 10,000 crore.

This it achieved by riding on Ramdev’s popularity as a yoga guru, with Patanjali’s natural products virtually creating the segment from scratch.

At the same time, Patanjali also launched several high-decibel ad campaigns based on the Swadeshi theme. Many of these attacked multinationals and their products – with Baba Ramdev comparing them to the East India Company and saying he would force them to flee India.

Since then, sales of Patanjali have petered out, falling to about Rs 8,100 crore in fiscal year 2018 and about Rs 4,800 crore in the first nine months of 2019.

The corresponding fall in advertising spends has been conspicuous. Patanjali launched the short-lived Kimbho instant messenger app last year, before coming out with Patanjali Paridhan, its apparel business. But the company was barely visible on TV during these launches.

Interestingly, Patanjali’s rivals such as Hindustan Unilever and P&G, which hopped on to the natural products bandwagon with their own products, have seen sharp sales increases for their products.

They have also been among the top advertisers over the past few years, according to the BS report.

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First Published on Aug 9, 2019 05:22 pm
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