Patanjali Ayurved CEO, Acharya Balkrishna is open to deals with global companies. The homegrown company which is well-known for its India-centric alternatives for multi-national products has reportedly received offers from international companies for deals and it is not ruling them out yet.
Although it is not known who exactly these offers come from, there have, in the past, been several companies that have expressed interest in Patanjali.
To give an example, French company Louis Vuitton (also known as LVMH) reportedly wants to buy a stake in the company. While Patanjali's model does not quite mesh with that of a multi-national company, LVMH is keen on finding some middle ground.
Since its formation in 2006, Patanjali has emerged as one of India's fastest growing FMCG companies, making competitors such as HUL and Dabur scramble to keep up. However, in recent times the company's growth has been slowing.
Although founder Baba Ramdev had avowed in 2017 that sales would more than double (to Rs. 20,000 crore) by March 2018, sales plummetted instead. Its annual financial report stated that Patanjali's sales had plunged 10% to Rs. 8,100 crore for the same time period.
Both the company and experts opine that the Goods and Services Tax (GST) rollout may have had something to do with this. Add to it the fact that many large companies have now taken to manufacturing herbal products and one might have at least part of the explanation. Joining hands with global companies will undoubtedly help Patanjali's bottomline. But it would also effectively sound a death knell for the ideology it was founded with.
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