NEW DELHI: Yoga Guru Baba Ramdev‘s Patanjali Ayurved Ltd has witnessed a major setback for the first time in five years.
Due to disruption by Goods and Services Tax and its weak distribution network, the consumer goods revenue plunges more than 10 per cent to Rs 8,148 crore in FY18 since 2013, according to a report by Care Ratings, Bloomberg reported.
“The decline was primarily because of its inability to adapt in time to the goods and services tax regime and develop infrastructure and supply chain,” the report said.
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Patanjali, the biggest fast-moving consumer goods (FMCG) company had become a household brand in India accounted for Rs 9,019.3 crore in FY17, which is more than double of FY16 (Rs 4,383 crore).
After the central government new nationwide sales tax (GST) rolled in July 2017, Patanjali’s growth trajectory took a hit as it failed to set up GST-related inventory and invoicing management system in a timely manner, according to Bloomberg.