- Sales fell because of the wrong decisions of the company
- In 2018-19, they expected sales to be even lower, up to December 2018, just 4700 crores.
Founder of Patanjali Ramdev in 2017 expressed the hope that by March 2018, the company’s sales would more than double to Rs 20,000 crores. However, instead of increasing, Patanjali sales dropped 10% to Rs 8,100 crore. According to a news agency report, Patanjali has revealed this year’s annual financial report.
Patanjali ignored quality in expanding
Sources and analysts say that Patanjali’s sales may have gone down even further in the last financial year 2018-19. Care Ratings had said in April this year that in the three quarters of December 31, 2017, Patanjali had only sold 4,700 crore worth of products.
According to the report, existing and former employees, suppliers, distributors, store managers and consumers of Patanjali say that because of wrong decisions the company’s ambitions have been interrupted. He told that because of the rapid expansion, Patanjali did not pay attention to maintaining quality.
According to a former employee, Patanjali’s scheme got entangled because of long-term dealings with the transporters and cost escalated. Another former employee said that Patanjali also lacks the software to monitor sales.
Meanwhile, Patanjali says that because of the expansion of the fast, some initial problems came but now it is over. Balakrishna, who holds 98.55% shares of Patanjali in an interview in April, said that we expanded a sudden, started three to four new units, so there were problems. We have solved the network problems.
— Madhusudan Thakkar (@madhusudan41) June 12, 2019
— GAURAV BAREJA (@barejagaurav) June 8, 2019
— Asim Qureshi (@AsimQur76281664) June 8, 2019