Patanjali Foods share fell more than 6% since the Supreme Court Advertising Ban on Patanjali Ayurveda.
Here is why it won’t affect the share price in a long run.
Confusion Related to Patanjali Foods vs Patanjali Ayurveda
- The Supreme Court of India imposed a temporary advertising ban on Patanjali Ayurved for running misleading ads targeting allopathic medicine.
- Despite confusion, it’s important to note that Patanjali Foods was not the entity targeted by the ban; it was Patanjali Ayurved.
- Patanjali Group, led by Baba Ramdev, aimed to disrupt the FMCG industry with natural products rooted in Ayurveda, leveraging nationalism and Baba Ramdev’s personal brand.
- Initially successful, Patanjali faced challenges like competition from MNCs, GST implementation issues, quality control problems, and distribution conflicts.
- To rejuvenate, Patanjali acquired Ruchi Soya, restructured its organization, separating food and FMCG under Patanjali Foods and wellness under Patanjali Ayurved.
- Patanjali Foods, a major player in edible oils, aims to diversify its revenue streams with ambitious revenue targets, focusing on the Food and FMCG division for growth.
- Despite the ban on advertising medicinal products, Patanjali Foods can focus on promoting its edible oils and other products to drive growth.
Read more detailed explanation on Finshots - Will the advertising ban on Patanjali shake things up?