Adverse consumer feedback dents Patanjali’s hope of doubling revenue
The company has now formed two committees at the behest of yoga guru Ramdev to address the problemUpdated: Mar 06, 2017 21:04 IST
Many Patanjali products, promoted by yoga guru Ramdev, are reportedly getting “adverse feedback” from consumers and retailers, denting the company’s hope of doubling its revenue to Rs 10,000 crores in this fiscal.
The Haridwar-based Patanjali Ayurved formed two internal committees at the behest of Ramdev to assuage the dissatisfaction of the retailers to address the problem.
The idea is to keep retailers happy so that they “take care of the interest” of the company by retaining consumers.
Established by Ramdev in 2006, Patanjali’s business journey so far has been impressive. From a humble beginning with Ayurveda products, the company now has array of fast-moving consumer goods (FMCG) on its portfolio.
Of late questions were, however, being raised over the quality of some of its products. Patanjali ghee, noodles, honey are few that faced lab tests, giving enough fodder to the competitors and reason to consumers to doubt.
The company also faced the ire of the Food Safety and Standards Authority of India (FSSAI) for ‘misbranding.’
The company refuted the charges.
“Babaji’s (Ramdev) brand image is associated with the Patanjali products. There is no question of our products being inferior in quality,” claimed SK Tijarawala, spokesperson of the Patanjali.
He, however, did not divulge details of the new arrangements being planned.
“Not every Patanjali product is a huge success. Moreover, it lacked damage and expiry policy that causes loss to us,” said a Patanjali retailer.
A company functionary admitted that riding on the huge brand name of Ramdev, the corporate office at Haridwar earlier neglected the feedback from the partner channels.
But after Ramdev’s intervention two committees have been formed.
One will look into the issues pertaining to the products that are nearing or have reached expiry dates. And the second committee will compensate retailers for those products that get damaged during the shipping. Besides, company is mulling to pass on certain amount of revenue to retailers across the country.
Patanjali’s competitors like Dabur, Procter and Gamble, Nestle have strong distributor base. Off late the company realised this weakness. Despite the fact that Patanjali has got offers to expand business in Bangladesh, UAE, Iran, Azerbaijan etc – the company prefers to concentrate on domestic market. So far beyond India, Patanjali has entered only in Nepal, perhaps due to its managing director Balkrishna’s connection with the Himalayan state.
“We are expanding fast in India and gradually will move overseas. We have zeroed in Suriname (a former Dutch colony) to expand base” Patanjali spokesperson Tijarawala added.