In a recent interview with the Economic Times, Yoga guru Swami Ramdev, founder of Patanjali Ayurved, accused an affiliation of corporations, pharmaceutical companies, intellectuals, and politicians of conspiring against his company.

"Patanjali denotes nationalism and self-pride which this group (alleged cartel) wants to destroy," Ramdev mentioned. He argued that these groups are intentionally spreading false information to damage the reputation of Patanjali's research and development facilities, which he asserts are superior to those of Hindustan Unilever Ltd and the government's Ayurvedic facility.

Ramdev's Concerns About Reputation and Ayurveda

Ramdev voiced concerns about a narrative being made against Patanjali. "People try to damage the reputation of Patanjali, about Ayurveda and natural products. But we are focused on our objectives of adding investor value, ramping up distribution and sales, research, innovation, and e-commerce. Premiumization will also be a core focus area for us now," he claimed. Despite facing numerous challenges, he credited the support of Indian consumers for Patanjali's success: "We didn't reach here because of any favors... We are here because of India's consumers."

Ramdev
Image Source: Indian Yoga Association

Sanjeev Asthana, Patanjali's chief executive, underscored the company's substantial market share, stating that they hold two-thirds of the herbal toothpaste market and are the fourth-largest biscuit player in the country, with sales of ₹1,600 crore last year. "We have 10 brands that have leadership level in business. Our growth rate has been scorching, whether it's market share or distribution," Asthana said.

The Supreme Court recently refused to accept testimonies from Ramdev and Patanjali's managing director, Balkrishna, who had offered unconditional apologies for publishing misleading advertisements. The court remarked that the apologies were only submitted after being “caught on the wrong foot” and scheduled the next hearing for April 16. The court also criticized the State Licensing Authority and the Uttarakhand government for their inaction, issuing a stern warning: “We will rip you apart. Do you have the guts to do what you are doing? You are acting as a post office."

Under the Drugs & Other Magical Remedies Act, 1954 (DOMA), publishing misleading advertisements can result in up to six months imprisonment and/or a fine for the first offense, with harsher penalties for subsequent offenses. Section 89 of the Consumer Protection Act, 2019 (CPA) also imposes significant fines and imprisonment for manufacturers or service providers who publish false or misleading advertisements.

Despite assurances from Patanjali, the Supreme Court received an anonymous letter in January 2024 alleging the continued publication of misleading advertisements. This led the court to issue a contempt notice to Patanjali and its MD, Acharya Balkrishna, and impose a blanket ban on further advertising or branding of Patanjali medicinal products until further notice.

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