Patanjali open to investment from multinational businesses says CEO
today Nov 12, 2019
Patanjali is now open to pursuing deals with global businesses after previously rejecting the idea and is currently reviewing several opportunities.
Patanjali could soon gain foreign investment, the Ayurvedic fast moving consumer goods company’s CEO Acharya Balkrishna told the Economic Times, not specifying the names of interested enterprises. “We have three [to] four offers from global companies who are keen to do international deals with Patanjali,” said Balkrishna. “We are not averse to working with multinationals, as long as it doesn’t clash with our values. We aren’t rejecting them just because they are MNCs. We are looking at the offers.”
The business had disrupted the FMGC space with its launch of a range of personal care items such as haircare and skincare products but has seen sales decline recently. The business’ revenue reached a high of Rs 10,500 crore ($1.58 billion) in the 2017 financial year but decreased to Rs 8,135 in the 2018 financial year.
A need to update logistics and the launch of Ayurvedic lines by large FMCG businesses in India contributed to this de-growth. Balkrishna attributed the decline to the introduction of the goods and services tax in 2017 and has stated his optimism for future growth.
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