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Patanjali praises government FDI policy

Published
today Feb 8, 2019
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Baba Ramdev’s Patanjali has praised the recent foreign direct investment (FDI) norms that came into effect at the start of the month. The regulations will help to promote a level playing field, believes the desi personal care business.

Patanjali supports the new government FDI norms for e-commerce - Patanjali Products- Facebook


Patanjali’s spokesperson, S K Tijarawala, spoke on behalf of the brand about the new FDI norms that govern e-commerce business and said that they will “help to create a level-playing field for all retail platforms, and encourage fair and healthy competition among them.”

The Department of Industrial Policy and Promotion’s (DIPP’s) FDI policy has been met with mixed reactions since its dissemination at the end of January this year and formal introduction on February 1. 

“In our view, an environment of equal opportunity is needed for all trade and retail platforms as organised trade and retail is at their early stages in India,” said Tijarawala.

Patanjali sells its products online through partnerships with a number of online marketplaces including the US-owned businesses Amazon India and Flipkart which have been affected by the new regulations. 

According to ET Bureau, Patanjali currently gleans between 12 and 15 percent of its total revenue from online sales. Rajeev has previously spoken about his plans to use e-commerce to reach a younger audience. 

Patanjali reported a total of Rs 8,148 ($1.2 billion) in standalone consumer goods revenue for the 2018 financial year. Although the business has struggles somewhat to adjust to the Goods and ServicesTax (GST) rates introduced in 2017, the business is widely considered the largest disrupted to India’s personal care market in recent years.

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