Patanjali Ayurved Ltd has been growing by leaps and bounds, and this says Baba Ramdev, is what is harming the interests of multinational FMCG’s operating in India. He has alleged that multinationals like Hindustan Unilever Ltd, Colgate-Palmolive (India) Ltd, Nestle India Ltd and Procter & Gamble are deliberately working to hurt the tremendous success of Patanjali Ayurved Ltd.
Patanjali Ayurved has grown swiftly, almost magically and has flooded the market with various packaged foods and personal care products. They have been able to report a revenue share of more than Rs.2000crores in the fiscal 2014-2015 and are slated to double that in the coming fiscal. This is the reason, says the Yoga Guru that is worrying the MNC’s, which manufacture similar products and the reason they are filing false reports about adulteration in Patanjali products. Ramdev went on to say that if Patanjali’s products continue to dominate the market then the MNC’s would find themselves in deep trouble in the next three to five years. However, the Baba has not shown any proof that proves the allegation correct.
Baba Ramdev said that multi-nationals are feeling threatened and so they have resorted to filing “false and fabricated laboratory reports” against Patanjali products. The Baba was reacting to charges that Patanjali products like ghee and honey were adulterated and fungus was detected in ghee. Baba Ramdev said that MNC’s do not allow Indian companies to grow as they either stifle them or buy them out. He however, was emphatic in stating that since they cannot do so with Patanjali they are resorting to conspiring against Patanjali. While Nestle India said that the allegation made by Baba Ramdev was incorrect, the other companies did not respond to the allegations.
Patanjali Ayurved has not escaped controversy either as the company has been facing problems from the FSSAI for their Patanjali atta noodles. The FSSAI has issued a show cause notice to the company for selling atta noodles without the approval of the apex regulator. The FSSAI also questioned Aakash Yog, the contract manufacturer for the noodles, as to how they manufactured Patanjali noodles without an FSSAI license. The FSSAI is presently studying the response sent to them by Patanjali Ayurved. Another controversy that is dogging Patanjali is their product named Putrajeevak beej. The Uttarakhand government has conducted a probe against this ayurvedic product which promises male offspring. Baba Ramdev remains unperturbed and says that they will discontinue the product if the government bans it.
Patanjali Ayurved sells products like mustard oil, flour, butter, biscuits, spices, oil, sugar, juices, honey and toothpaste, shampoo, soaps, etc. The reason for the success of the company is that their products are priced 10 to 15 percent lower than those of other FMCGs working in India. Also Patanjali has been advertising their products in a big way and therefore they have allocated a budget of Rs.360crore for marketing their products. Patanjali is working to create a strong foothold in the Rs.3.2 trillion packaged goods market. Analysts also report that Patanjali is getting there as they are already challenging other established packaged consumer goods companies.