Patanjali, an Ayurvedic brand of Yog Guru Baba Ramdev, is falling short to fulfill the demand of its retailers. The brand, which recently announced that it is planning to beef up its production line, has not been able to maintain a healthy supply to its retailers.
Patanjali has signed exclusive deal with Future Group and sells its products through large hypermarkets such as D-Mart, Star Hyper and Reliance. Apart from this, Patanjali products are sold through a large network of shops, Ayurvedic stores and pharmacies.
Explaining the current scenario, store executive at Star Hyper, run by Trent-Tesco combine said that they had planned to set up a separate section for Patanjali products but couldn’t do so because of erratic supplies. He elaborated that there is no point in keeping an exclusive rack to showcase the brand’s products since the supply is limited.
Another senior executive at a large retail chain stated that Patanjali’s fill rates are declining drastically and currently, its products’ fill rates are hovering at 40-50 per cent. On the contrary, other multinational consumer companies such as Nestle and HUL are maintaining a healthy fill rate of 85-90 per cent, which is almost double of Patanjali.
Fill rate in this case means the rate at which the goods are supplied by a manufacturer against a retailer’s order. To put it simply, if a retailer orders 100 products and the manufacturer supplies 90, then the fill rate is 90 per cent.
Similarly, another executive at a Mumbai-based retail chain said that Patanjali is a hyper start-up. It wants to grow from Rs 5,000 crore to Rs 10,000 crore but it is not realizing that systems and processes are not geared up. Every retail chain is facing supply issues with them.