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Rise and Fall of Patanjali, Whats the future?: Business case study
Patanjali has seen one of the most sensational growths in the history of the Indian market. And, the entire country was stunned to see how Patanjali crushed its competitors in ways that they never fathomed!
And this growth was so crazy that while Dabur took 140 years to hit a revenue of 11500 crores while Britannia took 132 years to hit a revenue of 16516 crores, Patanjali Ayurved took just 18 years to hit a revenue of 10,730 crores by 2022 and the entire Patanjali Group in 18 years touched a revenue of 45000 crores.
But but but just like its rise Patanjali also made the most sensational mistakes that ended up causing such a dramtic downturn that now they are embroiled in court cases with state governments, they have had terrible quality issues, many of their products have come under fire for their misleading claims, and licenses have been scrapped!
And all of this put together has caused such a dent in their numbers that From 2017 to 2018, Patanjali Ayurved’s revenue dropped by 10% and profits by nearly 50%. And 6 years later their numbers are still stagnating.
And this is what makes it an epic case of Rise and Fall in the Indian FMCG space.
So the question is,
How on earth did Patanjali become so big so fast?
What were Patanjali’s business strategies that caused the meterotic rise in the Indian market?
After the rise, what mistakes did they do which caused such a epic failure of such a big brand?
And most importantly what are the business lessons that we need to learn from the rise and fall of Patanjali?