Even as other consumer goods manufacturers saw a healthy sales growth in FY18, Patanjali Ayurved posted a flat growth - a dip for the first time in 5 years.
Even as other consumer goods manufacturers saw a healthy sales growth in FY18, Patanjali Ayurved posted a flat growth – a dip for the first time in 5 years. However, the homegrown firm doesn’t consider it to be a major concern. Since company was involved in a major planning to improve sales, future investments and improving distribution network last fiscal, a slight plunge in revenue growth is obvious, Acharya Balkrishna, MD, Patanjali Ayurved told ET Now.
Adding, he said that GST, demonetisation also had an impact on the FMCG sector’s growth. In FY18, while HUL recorded 12 per cent revenue growth, ITC and Nestle posted 11.30 per cent and 10.50 per cent growth, respectively in the country.
Considering the fact there is no slowdown in demand, the company is not majorly worried, he also said. We have expanded our distribution network and it will take time to see results, he added. The distribution sales will improve in run-up to March, he told ET Now.
The company’s standalone consumer goods revenue fell over 10 per cent to Rs 8,148 crore in the year ended March 2018—the first time since 2013, according to a report by Care Ratings, Bloomberg had reported in November. “The decline was primarily because of its inability to adapt in time to the goods and services tax regime and develop infrastructure and supply chain,” the report had said.