Patanjali strengthens distribution network following sales dip

By

Isabelle Crossley

Published
Feb 18, 2019

Patanjali will take a step back to strengthen its distribution network following a sales dip and expects its revenue to improve in the coming year, according to the brand’s chief executive Acharya Balkrishna.

Acharya Balkrishna recently spoke as a keynote speaker at the Bennett University summit on green biotechnology and its impact on the Indian economy. At the summit, Balkrishna told the Economic Times that the Ayurvedic business has a game plan to recover from its first recorded revenue decrease in five years.

“We were growing very fast but servicing the trade channels, infrastructure and the goods and services tax (GST) rollout impacted us,” Balkrishna told the Economic Times. “To expand the business to the next level of growth, we needed a little time to work on supply chain and distribution.” 

Balkrishna blamed the business’ supply chain for the ten percent revenue decrease during the 2018 financial year. “We are strengthening our distribution network now and most of the work is done, and results will be visible in the coming year,” said Balkrishna.

The business has also undertaken a restructuring and has moved some product categories such as noodles and biscuits from within Patanjali Ayurved to fall under different group companies. However, the business has no plans to slow down its expansion and recently launched a nationwide campaign for its new clothing line.