NCLT had admitted the insolvency plea filed by two lead financial creditors Standard Chartered Bank and DBS Bank. However, later the Singapore-based DBS Bank became dissenting creditor and approached NCLAT challenging the distribution of proceeds from the bid submitted by Baba Ramdev-led Patanjali Ayurveda.
“We are not creating a strategy for recession now. As a business, we are ready for the demand to pick up and it is not that we are putting the shutters down,” said HUL chairman. “The slowdown has to first slow. Then you have to stop slowing down. And then you have to reverse. So, at this stage, it is difficult to predict whether we have reached the bottom or not.”
The company had reported a revenue of Rs 937 crore and Rs 1,576 crore in June quarter and September quarter of 2018-19, respectively. "The most remarkable and noticeable thing is that Patanjali Ayurved has made a comeback. It has achieved the highest ever H1 figure in its history," Patanjali spokesperson S K Tijarawala told.
The Kolkata-based conglomerate said this will strengthen presence of ITC's FMCG products in the emerging distribution channel of vending machines. ITC has said it will complete the acquisition within 12 months in an all-cash deal. The size of the deal is Rs 7.5 crore which will be paid in four tranches over a period of 12 months.
Over the years the brand has grown from a single soap brand to soap variants, talcum powder, deodorants, liquid soap, hand wash, face wash and so on and has been constantly launching new brand variants and new products in tune with market demands and needs. Santoor remains as one of the most aggressive personal care brands in India.
French luxury giant LMVH had in the past said it is keen to pick up equity in Patanjali. The ayurveda products maker had forced global and local players to step up their portfolio in this space as it became a Rs 10,000-crore-plus company in just about a decade. However, Patanjali has been losing ground in recent times.
The local unit of Unilever will launch more than a dozen friendly personal care products under Love, Beauty and Planet brand, that are made from ethically and sustainably sourced ingredients with vegan-friendly formulations and packed in 100% recycled and recyclable bottles.
Over the past two-three years, P&G Home Products has been exiting unprofitable categories and product sizes, in line with its global strategy, that slowed down its revenue growth but led to much more profitable business.
Ahmed El Sheik’s comment on the economy comes on a day when global ratings firm Fitch cut India’s growth forecast for fiscal 2020 to 5.5% from its June projection of 6.6%. The slowdown has hurt the FMCG sector, where PepsiCo operates, as well.
ITC Chairperson Sanjiv Puri said that the company is planning to set up a food processing facility in Madhya Pradesh at an investment of Rs 700 crore. The land for the proposed food processing unit is already with the company.
Rural market growth slipped to 5% in Q3 of 2019 as compared to 20% in the corresponding quarter last year. This slump has contributed 60% to the FMCG industry slowdown, according to Nielsen’s report. Overall FMCG growth has come down to 7.3% in Q3.