BHUBANESWAR: “...some good news maybe next month”. With this cryptic comment, Yoga guru and businessman Baba Ramdev on Wednesday just gave a glimpse of his intention on listing his flagship brand Patanjali on stock exchanges.
The comments come on the back of Ramdev’s contrasting views on listing last year, when he said, “We don’t want to come under pressure of declaring our financials quarterly. We do not have the valuations game in mind.”
Speaking at the India Economic Conclave 2018, the Patanjali co-founder maintained that farmers wouldn’t require loan-waivers if they can avail cheaper electricity, improved irrigation facilities, fertilisers and right MSP for their crops. “We, at Patanjali Ayurved, have given employment to about 2 lakh people and are working closely towards providing employment to as many as 5 lakh people, going forward,” he said.
The homegrown FMCG brand, which started out as a small pharmacy, quickly grew to challenge multinational FMCG giants as it expanded into diverse segments. Today, it expects to overtake Hindustan Unilever Limited (HUL) in terms of turnover by FY20, Ramdev reiterated at an event. Patanjali’s breakneck growth has, however, ground to a halt in recent months.
Patanjali, which had doubled its revenue from Rs 4,383 crore in FY16 to Rs 9,019 crore in FY17, clocked a 10 per cent decline in revenues in FY18 at Rs 8,148 crore, for the first time since 2013. “The decline was primarily due to its inability to adapt in time to the GST regime and develop infrastructure and supply chain,” Care Ratings said in a note.
Its rival HUL’s revenue stood at Rs 35,218 crore in FY18. Similarly, when Patanjali queered the herbal pitch, Dabur made an opportunity of this threat through renewed focus on herbal “which will help it clock overall volume growth of 12 per cent in FY19,” Edelweiss said in a recent note.