1. Patanjali CEO Acharya Balakrishna: Aim to clock double-digit growth in FY18

Patanjali CEO Acharya Balakrishna: Aim to clock double-digit growth in FY18

Patanjali CEO Acharya Balakrishna on Thursday said that it aims to clock double-digit growth in FY18. In an interview he said: "We don't stress at revenue targets at Patanjali".

By: | Published: April 20, 2017 3:13 PM
Talking about FDI he said, “I am not against FDI but the foreign companies should not spoil the Indian food culture”. He further said that Indian manufacturers have a better understanding of Indian market.

Patanjali CEO Acharya Balakrishna on Thursday said that it aims to clock double-digit growth in FY18. In an interview with CNBC-TV18 Balakrishna said: “We don’t stress at revenue targets at Patanjali”. Talking about FDI he said, “I am not against FDI but the foreign companies should not spoil the Indian food culture”. He further said that Indian manufacturers have a better understanding of Indian market.

Earlier this month, Patanjali Ayurved told ET Now that it is focussing only on the domestic market currently and not looking at the international market with vigour. The FMCG company also ruled out any plans for IPO. “There are no plans for an IPO yet,” it said. Talking about the company strategy it said, “We will be bringing on board new products. We have also developed a new market called Ayurveda.” When asked about the advertisement strategy, Patanjali said: “Our ads are not for promoting our products but are informative”. “We are against councils that are biased towards a particular party,” it added.

Meanwhile, an ASSOCHAM– TechSci Research paper said that Patanjali Ayurveda has turned out to be the most disruptive force in India’s fast moving consumer goods (FMCG) market. Patanjali which has expanded its product portfolio across wide range of personal care and food and beverages witnessed a whopping annual growth of 146 percent in fiscal 2016 grossing in turnover of $769 million whereas its peers including ITC, Dabur, Hindustan Unilever, Colgate – Palmolive and Procter and Gamble, among others, struggled to get a growth much less than a double digit.

 

Also, the company is among the top advertisers in the country. Of the total 1.14 lakh insertions last year, 84% were on news channels and nearly 99% on Hindi news channels. That’s one way of reining in costs since this genre is cheaper than GECs (general entertainment channels) but it also means missing out on a core audience. The rest of the FMCG pack relies on entertainment channels to sell their products because news channels have a relatively small share of the viewership pie — English news at 0.03%, Hindi news at 3% and regional news at 3.5%, as per KPMG-FICCI.

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