The Baba Ramdev and Acharya Balkrishna-promoted Patanjali Ayurved was the biggest disruptive force in India’s Fast-Moving Consumer Goods sector in 2016, a report by the Associated Chambers of Commerce of India and TechSci Research has said, PTI reported on Sunday. The study said that the company saw an annual growth of 146% with a turnover of $769 million (approximately Rs 5,221.89 crore) for the 2016 financial year.
Patanjali’s peers, including ITC, Dabur and Hindustan Unilever, struggled to achieve growth rates lower than double digits, the report said. “With around 500 products, many of them in the FMCG category, the company [Patanjali] has significantly increased its market share. Many of its product launches have impacted the share of other FMCG companies in the product category.” The report added that India was also emerging as a strong regional export hub for both domestic and multinational FMCG firms looking to take advantage of competitive costs.
However, Patanjali has been subject to regulatory scrutiny and legal action. On December 15, the company was fined Rs 11 lakh for “misbranding and putting up misleading advertisements” of its products. An Additional District Magistrate Court in Haridwar foudn five production units of Patanjali Ayurved guilty of misbranding after the company sold certain products with its label even though they were manufactured elsewhere. Patanjali has also been criticised for producing advertisements “unfairly denigrating” products manufactured by its competitors.